How are enterprise organizations embracing cloud computing solutions? What factors are they considering when it comes to cloud adoption?
According to a recent Gartner survey there are three factors that will affect how enterprise organizations will shift from traditional technology products to technology delivered via cloud computing solutions.
1. Increased cloud usage will be through ‘tactical business solutions addressing specific problems, not through broad, strategic infrastructure replacements.’
In other words, enterprise use of the cloud will depend on each technology need rather than an IT-wide decision. Since the cloud market is still largely influenced by early adopters addressing specific issues—and mainstream enterprise organizations are generally not early adopters of innovative technologies—the adoption rate of cloud computing solutions is increasing gradually in waves.
2. Cloud influence is also driven by the fact that ‘the business impact of cloud services increases as they continue to move up the cloud services value chain, from infrastructure services to business process services.’
Simply put, the more cloud computing solutions affect the organization as a whole, the more complex the decision becomes. Placing existing applications in the cloud, versus replacing applications with new cloud-driven solutions, are two completely different decisions with different enterprise-level implications.
3. The ‘introduction of cloud solutions will lead to a more diverse solution portfolio with widely varying implementation and migration timelines.’
With the different cloud computing service variations, there’s a degree of complexity, and despite some meaningful long-term benefits, there are few ‘shortcuts and silver bullets’ as Gartner says.
For example, Gartner predicts that public cloud computing solutions will grow 18.5 percent this year (to $131 billion) with 52 percent of the deployments residing in use-case scenarios. Here’s a quick breakdown:
- Cloud advertising: 48%;
- Business process as a service (BPaaS): 28%;
- Software as a Service (SaaS): 14.7%;
- Cloud systems infrastructure (IaaS): 5.5% (and fastest growing);
- Management, security and automation: 2.8%;
- Application development/Platform as a Service (PaaS): 1%
Ultimately, cloud computing solutions will continue to make inroads into the enterprise, but the march will be slow and methodical, as it should be. Remember, there are some deep, dark secrets that are inherent in cloud computing…
- The cloud never forgets
- Data in the cloud needs a steward
- It needs to be managed like IT
- The cloud isn’t as reliable as it’s being touted
- The long term financials may not be as rosy as you think
- Cloud security visibility may be blurry
Enterprise or SMB, turning to the cloud will have varying internal implications that need to be considered prior to any implementation. Check out a blog we wrote a couple of years ago that’s still relevant today – 30 Questions to Ask Before Turning to the Cloud – and proceed with caution as always.