Cloud Computing: A Cloudy Future?

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A Cloudy Future?

What’s the state of cloud computing among businesses? What can we expect in the years to come?

A Walk Through the Cloud

Most companies are at least dipping their toes into cloud-based computing. The numbers are great and growing.

9 in 10

Organizations running or experimenting with cloud services (1)

Companies with 1,000+ employees (1)

88% use private cloud

63% use public cloud

$127 billion

Global spending on public IT cloud services by 2018 (2)

42%

Predicted increase in spending on cloud computing by IT pros in 2015 (3)

Cloud computing is the most important project for IT departments.

Most important initiatives (3)

Cloud computing: 16%

Legacy systems modernization/replacement: 12%

Software on-premises: 9%

Security technologies: 8%

Application development upgrades or replacement: 7%

Business analytics: 6%

Virtualization: 6%

Disaster recovery/continuity planning: 6%

The Cloud Forecast

Cloud computing is growing, and companies are spending more money. What trends should IT pros be aware of in the coming months and years?

The cloud will continue to disrupt traditional IT

As demand for cloud services grows and companies are forced to spend, cloud’s share of the total IT pie will get bigger and bigger, taking up a larger portion each year.

Cloud as a percentage of total IT enterprise spending (4)

2013: 4%

2014: 5%

2015*: 6%

2016*: 8%

2017*: 9.5%

2018*: 11%

* Projected

Large companies are driving traffic to public clouds

While the public cloud leads the way overall, large organizations have thus far been hesitant to invest. That’s going to change — and soon.

Percentage of large companies’ virtual machines running in public cloud (1)

Now: 13

2016: 27%

Hybrid cloud will continue to dominate

More companies will use a portfolio of clouds instead of relying solely on either private or public.

Large companies’ cloud strategy (1)

None: 3%

Single public: 10%

Single private: 5%

Multi-cloud: 82%

Demand for cloud brokers will surge

Cloud service brokerages can play an intermediary role in cloud computing. And for many companies, their own IT departments are filling that role. IT pros would be wise to begin positioning themselves as cloud brokers within their companies, making clear to the business units that they can provide that service.

Percentage of those in business unit who see central IT as cloud broker (1)

2014: 18%

2015: 40%

Identifying the Best Cloud for You

Every business is different, and only you know the specifics of your needs, but some general guidelines apply to most companies. (4)

Choose providers that focus on business

Well-publicized outages and breaches in public-focused cloud services highlight the need for cloud providers who design their services with business in mind. Downtime could cost your company dearly, so look for providers that have specifically geared their services toward companies like yours.

Only the best resources

Your cloud provider should take continued service seriously, from who staffs the help desk to who ensures your needs are being met. Ask how many of your provider’s personnel are skilled, certified engineers.

Get everything in writing

As with any service contract your company enters into, only choose a provider with a clear service agreement that has well-defined response and resolution times. Ensure their security measures and protocols are up to, if not exceeding, your standards. If needed, customize the agreement to fit your unique needs.

Consider their scale

Is the provider able to operate on a global scale, if needed? If they aren’t able to meet your geographic needs, it may not be a successful relationship.

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Sources:
1. http://www.rightscale.com
2. http://www.idc.com
3. http://www.forbes.com
4. http://www.itbusinessedge.com