In the previously discussed, we tried understanding the current state of Cloud Adoption and why should you plan to invest in cloud. In this week’s blog, we will try to understand cloud adoption and how many enterprises are planning to move their applications and processes to the cloud.
Cloud adoption services entail 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, the 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. A 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 has begun to 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 is 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 are 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 the 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 the 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 of 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 email@example.com or (855) 61-VOICE.