Cloud adoption to increase by 50% by 2020

Cloud Adoption, Cloud ServicesThe majority of public cloud deployments are generally used for web servers or development systems where security and compliance requirements of larger organizations and their customers is not an issue. Private cloud computing, on the other hand, by definition is a single-tenant environment where the hardware, storage and network are dedicated to a single client or company.

According to the International Data Corporation (IDC) Worldwide Quarterly Cloud IT Infrastructure Tracker, total cloud IT infrastructure spending (server, storage, and Ethernet switch) will grow by 26.4% in 2015 and will reach $33.4 billion, accounting for a third of all IT infrastructure spending, up from 28.1% in 2014. Private cloud IT infrastructure spending will grow by 16.8% year over year to $11.7 billion, while public cloud IT infrastructure spending will grow by 32.2% in 2015 to $21.7 billion. In comparison, spending on non-cloud IT infrastructure will remain flat at $67 billion.

For the five-year forecast period, IDC expects that cloud IT infrastructure spending will grow at a compound annual growth rate (CAGR) of 15.6% and will reach $54.6 billion by 2019 accounting for 46.5% of the total spending on IT infrastructure. At the same time, spending on non-cloud IT infrastructure will decline at a -1.4% CAGR. Spending on public cloud IT infrastructure will grow at a slightly higher rate than spending on private cloud IT infrastructure – at 16.5% vs 14% CAGR. In 2019, IDC expects cloud service providers will spend $35.3 billion on IT infrastructure for delivering public cloud services, while spending on private cloud IT infrastructure will reach $19.2 billion.

Almost 70% of business and technology executives in APAC believe that cloud computing will be at least as disruptive to the technology landscape as the impact of virtualization or the internet, according to Coleman Parkes Research’s survey findings. Commissioned by HP, Coleman Parkes’ survey, titled: The Future of Cloud, revealed that senior business and technology executives expect public and private cloud delivery models to increase by 50%. The other key findings of the study include: Currently, only 27% of enterprise delivery models are cloud-based. The top three barriers to cloud services adoption are security concerns (35%), transformation concerns (31%), and compliance or governance concerns (16%). Business and IT executives recognize that cloud implementation will be critical to driving successful outcomes and innovation. About one in two CEOs and CFOs are currently setting cloud strategies for their organizations.

Cloud computing is transforming the enterprise IT security market. Gartner expects 10% of IT enterprise security products to be delivered via the cloud by 2015. The research firm predicts that the cloud-based security services market will surge to US$4.2 billion by 2016. Cloud-based security services are having a particular impact on buying behaviors in segments including secure email and web gateways, remote vulnerability assessment and IdentiCloud boosting profits, helping start-ups start.

A majority (56%) of cloud computing adopters believe the technology has helped them improve profits, while nearly nine in 10 report it has helped them save costs. These are among the key the findings of a survey by the University of Manchester’s Business School, commissioned by Rackspace.

Your developers and business leaders are going around you to the public cloud because they value the autonomy, agility, and productivity they get from cloud services, not because it is cheaper. Your private cloud objectives should align to the experience they desire. Can you achieve greater cost efficiencies by operating a private cloud? Yes, private clouds come with a long list of associated benefits (e.g., scalability, cost savings, and developer enablement). However, most of these benefits are not inherent to all cloud deployment types and strategies. Why do enterprises struggle with private cloud? Technology management teams must become a credible cloud services provider and adjust their view of the business to that of a free-market customer. This transition isn’t easy. The natural tendency of internal technology management teams is optimization and cost-saving prioritization rather than using cloud as a new technology to accelerate business success. Before designing your private cloud strategy, Forrester recommends that all tech management leaders familiarize their teams with the following 10 private cloud facts to help set expectations and focus their team’s efforts to maximize private cloud value.

To share more details on your cloud strategy write us at business@bodhtree.com

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