McKinsey ITaaS Report – The Cloud Debate is Over

An Image Depicting McKinsey ITaaS Report - Build to Consume

McKinsey ITaaS Report – small, medium and large enterprises are moving a significant portion of their IT workloads to cloud environments and the impact with be substantial for for both consumers and vendors.

In the McKinsey on ITaaS report, businesses are switching their IT workloads over to the cloud and it is happening in droves.  Businesses are now moving forward at impressive speeds to adopt new delivery models for their technology services. The shift is well underway from centralized, localized IT services departments to web-based models.

McKinsey ITaaS Report – Time Horizon

An Image Depicting McKinsey ITaaS Report - Build to ConsumeThe general shift to the cloud is underway, the consequences are massive and within threes years McKinsey expects enterprises from building IT to consuming IT. Based on analysis from McKinsey ITaaS Report, the move to the cloud is paving the way for major organizational restructuring across all industries and around the globe.

Furthermore, as companies adopt ITaaS, they will experience the type of transformation that drives innovation. Cloud-based IT can respond quickly to the changing needs of a business, making it possible for businesses to become more agile. That, in turn, can eventually lead to innovation, increased efficiency, and a significant leg up in the marketplace.

McKinsey ITaaS Report – Key Takeaways

  • There is an overall shift from build to consume, with off-premise environments expected to grow at an increasing rate.
  • Specifically, a reduction in the number of workloads housed in on-premise traditional and virtualized environments is foreseen.
  • Dedicated private cloud, virtual private cloud and public Infrastructure as a Service (IaaS) should experience higher rates of adoption.
  • Large, midsize and small enterprises are all planning to transition IT workloads at an increasing rate and pace to a hybrid cloud infrastructure – the rate of growth in off-premise environments should lead the pack.
  • The benefits of time to market and quality are key factors propelling the change and rise above the impact of cost.
  • For large enterprise adoption of ITaaS, security and compliance are still challenges that must be overcome.

McKinsey ITaaS Report – Who is Shifting to Off-premise Cloud Services

  • An Image Depicting McKinsey ITaaS Report - Shift to Off-premise Cloud ServicesLarge enterprises have communicated that they are planning to move IT workloads away from traditional virtualized environments towards the cloud – virtual private cloud is the preferred choice
  • Medium-sized enterprises began the move to off-premise cloud services (dedicated private cloud and virtual private cloud share the top choice) earlier than large enterprises so the growth rate may be lower but the impact as significant.

McKinsey ITaaS Report – Survey

The McKinsey ITaaS Report is based on approximately 800 executives (CIOs and IT execs) from around the world responded to the survey, which went out to a wide variety of industries. Size of companies queried ranged from small and mid-sized companies to large Fortune 100 enterprises.

The pace of the migration to cloud adoption was measured, but more relevant to business decision makers, the impact on the IT industry was also gauged. The decision-making criteria for companies in the process of selecting cloud infrastructure services providers was also examined.

McKinsey ITaaS Report – Conclusion

The McKinsey ITaaS Report communicates that as the shift to ITaaS increases in scope and pace, we can expect large enterprises to now become the driver of growth. They are the fastest-growing segment in the cloud-adoption scenario, replacing midsize companies in that area, and contribute the greatest amount of dollar spend.

In short, on-premise IT vendors will need to adapt as cloud service providers of off-premise cloud infrastructure services are poised to bountiful times ahead.




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