Analyzing the idg enterprise cloud computing study cloud adoption

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  • Analyzing the IDG Enterprise Cloud Computing Study: Cloud Adoption

    In the previously discussed part 1 and part 2, we tried understanding the current state of cloud

    and why should you plan to invest in cloud. In this weeks blog we will try to understand the adoption of cloud and how many enterprises are planning to move their applications and

    processes to the cloud.

    Adoption of cloud services entails investments and it is not easy always to convince the decision

    makers to move their application to the cloud. However, there has been a significant shift in how

    top executives are viewing cloud services year-on-year. According to the survey, it was

    relatively tougher to convince decision makers such as CFOs, board of directors, CEOs to adopt

    cloud services in 2013 than it was in 2014. The survey sheds an interesting pattern in which it

    was showcased that among the various top level executives who had to be convinced about the

    benefits of cloud, 27% voted that CFOs were the toughest to be convinced. However, in 2013,

    35% of the respondents felt that CFOs were the toughest. Similar pattern is observed across the

    organization with respondents feeling that it is getting easier to convince the decision makers

    about investing in the cloud. This trend buttresses an invaluable underlying trend which is that

    everyone including the top-level management in the organization have begun understand the

    value of cloud computing.

  • Now that enterprises have decided on moving applications to the cloud, it is worth analyzing

    what are the various types of applications that are being migrated. Among the various

    applications email/messaging are the prominent applications with 49% of the respondents

    answering that their organization is currently using or migrating. Closely following is the

    collaboration/conferencing solutions that 43% of the organizations are currently using or

    migrating. Other important applications that is either being migrated or being planned to migrate

    over the next 12 months include customer relationship management, sales force automation, data

    storage/data management, content management systems, business/data analytics among others.

    One important thing to be noted is that majority of the enterprises are still reluctant to migrate

    security and management related applications. The apprehension regarding the security in cloud

    is playing a significant role in influencing the decision of enterprises to move these critical

    applications to the cloud. The recent attacks by hackers on the sensitive cloud data is only

    increasing the insecurity among the enterprises to migrate to the cloud. Cloud providers are also

    addressing the issue effectively by upgrading the security systems in the cloud to ensure

    maximum security to the mission critical enterprise data. Applications such as ERP, security

    management, supply chain management, product lifecycle management and compliance

    management are among the few that have less than 20% of enterprises are operating in the cloud

    and more than 50% of the enterprises feel that they wouldn't plan migration of these applications

    in the next 3 years.

    Among the various cloud computing tools, IaaS and PaaS are most preferred by the enterprises.

    Larger enterprises with over 1000 employees lead the adoption than the companies with less than

    1000 employees. As of 2014, 35% of the surveyed companies are currently using IaaS services

    and 26% are using PaaS while only 22% and 15% of the smaller companies are using IaaS and

    PaaS respectively as of 2014. At the same time, close to 25% of the large enterprises plan to

    implement cloud computing services over the next 12 months while nearly 20% of the smaller

    companies plan to invest in the cloud over the next 12 months.

    In the next blog, we will analyze the organizational impacts from the cloud.

    DoubleHorn is a leading cloud based Managed Services Provider, founded in January 2005 and

    based in Austin, TX. We specialize in delivering Cloud Services, Managed Communications

    and Consulting to the Enterprise, Government and SME (Small and Medium Enterprise)

    sectors. If you are new to the cloud and not sure how to get started, contact us for a

    complimentary initial assessment at solutions@doublehorn.com or (855) 61-VOICE.

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