CIO.com survey says: Cloud computing has come of age

 I posted a blog at the beginning of 2011 citing HP experts and their sunny forecasts for cloud computing.  Now newly released CIO.com and IDG Research indicates IT departments also believe the cloud is here to stay.  Survey respondents are active in cloud today and they expect to be even more involved in the future.  The “2011 CIO Cloud Survey” was conducted last October and November online via CIO.com and the CIO Forum on LinkedIn.  A total of 451 IT professionals participated, 161 of them at the senior IT management level. 

 

When asked to give a percentage of the amount of IT services delivered by SaaS, public cloud, private cloud and hybrid today and an estimate of the percent that will be delivered in each category in 18 months, respondents answered they anticipate an increase in all delivery methods.

  • SaaS: Survey participants say that 12% of their organization’s data is currently delivered by SaaS applications, with an estimated increase to more than 16% in the course of the next 18 months.
  • Public cloud: Respondents report that 8% of their organization’s data currently resides in the public cloud and they expect it to increase to about 13% over the next 18 months, nearly a 50% jump. 
  • Private cloud:  Survey participants indicated that about 21% of their company’s data is housed in a private cloud today, with an increase to 27% expected 18 months from now.
  • Hybrid cloud:  Hybrid clouds are currently storing about 9% of participating company’s data; with an expected 18-month growth to nearly 15%. 

blueskyclouds2.JPG

 

The results also show the following:

  • Nearly 40% of the respondents said that cloud computing is either a critical or high priority for their company.

  • Respondents said on average about 18% of their total IT budget is allocated to cloud-based services computing (including software, services, training and other related costs.)

  • Software-as-a-Service is seen as the most important delivery model among survey participants with a whopping 62% rating SaaS as a high or moderate investment priority over the next 12 months.

 

  • Security is by far the biggest cloud computing barrier, with 71% of enterprises placing security among their top three concerns.  The second and third most cited challenges are concerns about information access and concerns about information governance. 

 

According to the survey, the top three reasons (nearly tied in selection) for investing in cloud computing are:

  1. Enabling business continuity
  2. Greater flexibility to react to changing market conditions
  3. improving customer support/services

To me, these reasons for investing in cloud speak  to why you need a strategic plan for your cloud computing.  (See my earlier post, “Why you need a cloud computing strategy and how to get one.”)  Along with the immediate tactical benefits of flexibility and the ability to purchase IT service on demand, with a long-term plan you will be able to map an approach with the goal of freeing up your staff to work on more strategic and less tactical projects to support the business.  So you can get closer to becoming a strategic broker of IT services. (See related blog post by Christian Verstraete, Chief Technologist, Enterprise Business Cloud Solutions entitled “HP’s Cloud Vision: The CIO as the Strategic Service Broker.”)

In sum, the research shows an expected growth of cloud delivery for all sizes of companies.  More and more of the IT budget will be allocated to cloud in the next year or so.   Finally the respondents are most concerned about security in the cloud and expect vendors to address this concern. 

 

 

How does your IT organization stack up in terms of the survey? Is your experience similar to that of the participating companies? Let me know.   

 

Labels: cloud computing
Comments
dtirsell | ‎03-10-2011 10:55 AM

Judy, I can absolutely confirm those growth figures in our experiences at Informatica.  We've seen a shift from "nice you help with Cloud Integration" to "I need to integrate data with a Cloud applications".  Some companion information from a recent architect's perspective can be found at "Informatica Cloud Perspective"

JudyRedman | ‎03-11-2011 04:18 PM

Thanks for the comment.  It's interesting to see that Informatica has a "Cloud First" strategy.  I wrote about that topic recently in a post titled "Tips, tools and template to draft a cloud strategy."  So yes, thinking about cloud strategically has become a necessity.  I would appreciate your comments on the importance or necessity of having a cloud strategy. 

Free avi player(anon) | ‎12-28-2011 03:32 AM

Thanks for showing the statistics, it's an easier way to get it clearly. Cloud computing is definitely  of high priority in almost any company, doesn't matter if it's large or small.

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Judy Redman has been writing about all areas of technology for more than 20 years.


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