Understanding Cloud Computing Plans summarizes the IDG 2018 cloud computing research (opt-in).
Cloud Computing Plans provides an understanding of a companies cloud computing plans by outlining the solutions they are moving to the cloud and which as-a-service models they are likely to move them to.
73% of organizations have at least one application in the cloud and another 17% of businesses plan to move an application the cloud in the next 12 months.
Understanding Cloud Computing Plans – Cloud Adoption Facts
- 9 out of companies will have some part of their applications or infrastructure in the cloud by 2019 and the tenth is expected to follow by 2021.
- Cloud technology (applications and infrastructure) is quickly becoming the default at companies of all sizes.
- The average cloud investment is rising nearly 36% from two years ago.
- Cloud adoption is growing across all delivery models, with examples of every kind of application and workload on every kind of platform have either already adopted cloud
- 73% of respondents report having already moved to the cloud and another 17% intend to do so in the next 12 months- the remaining 17% plan to make the move in the next 1- 3 years
Understanding Cloud Computing Plans – Cloud Adoption and Spending Both On the Rise
- 89% of organizations use SaaS (Software as a Service) in their IT environment and it by far the most common cloud service model across companies of all sizes
- 73% of companies are now using Infrastructure as a Service (IaaS)
- 61% are now using Platform as a Service (PaaS)
- The average IT environment is increasingly cloud-based, expanding from
- roughly half the environment in the cloud today to more than two-thirds in just 18 months
- Today’s average IT environment is 52% non-cloud leaving 48% for cloud: 23% SaaS, 16% is IaaS and 9% is PaaS
IDG forecasts that in the next 18 months,, non-cloud delivery will account for less than a third of the average IT environment
- SaaS is expected to drive 33%, IaaS 22%, and PaaS 14%.
- SaaS is expected to be deployed in 95% of businesses, IaaS at 83% and PaaS at 73%
Understanding Cloud Computing Plans – Applications Migrating to the Cloud
More than a third (38%) of respondents report their IT department is under pressure to migrate all applications and infrastructure to the cloud
- Services 46%
- Financial Services 46%
- High Tech 43%
- Healthcare 38%
- Manufacturing 37%
- Tele3com 36%
- Education 29%
- Government / Non-profit 23%
Understanding Cloud Computing Plans – Cloud Computing Budgets
Average Cloud Budget: $2.2 million Up from $1.62M in 2016
- $3.5M enterprise
- $889K SMB
As companies increase their cloud adoption, they’re also increasing their cloud budgets. The average cloud budget, $1.6M in 2016, has spiked nearly 36% to $2.2M in 2018. Much of this increase is driven by SMBs.
Interestingly, even with the large increase in dollars invested in the cloud, it actually makes up only a slightly larger proportion of the overall IT budget in 2018 (30%) than it did in 2016 (28%). This suggests that companies are not necessarily prioritizing cloud over other IT expenditures, but rather may be folding cloud migration into a broader recovery from a period of IT budget austerity.
Understanding Cloud Computing Plans – Cloud Migration
Where Cloud Migration Has Taken Place
- Migrating websites and web apps 57%
- Collaboration and communication solutions 53%
- Storage/archive/backup/file servers 41%
Where Cloud Migration Will Take Place
- Companies are still planning to migrate a disaster recovery/high availability systems 45%
- Business intelligence / data warehousing/data analytics 41%
- System management / DevOps 40%
Top Priorities for Cloud Migration in the Next Year
- Disaster recovery 24%
- Development and testing 23%
- System management / DevOps 23%
Top Priorities for Cloud Migration in the 1-3 Years
- Business intelligence / data
- Warehousing/data analytics 21%
- Disaster recovery 21%
- LOB App’s (finance and HR) 19%
Understanding Cloud Computing Plans – Top Challenges to Implementing Cloud Applications
Overall, respondents say their top 3 challenges or barriers to implementing cloud are concerns about
- Vendor lock-in 47%
- Security concerns 34%
- Data storage location 34%
Many (42%) respondents are addressing their concerns by working with multiple cloud providers, with or without hybrid (cloud and on-premise) deployment.
Among those using this multi cloud strategy, more than half (54%) are doing so at the suggestion of the IT department
- Improved availability and speed
- Increased cloud options
- The ability to increase flexibility and improve disaster recovery by spreading workloads and risk across multiple clouds
It’s no surprise, then, that more than half (51%) of companies now think of their cloud providers as a portfolio that needs to be managed as a whole rather than as individual parts, even as they migrate more applications to more vendors in more clouds.
Understanding Cloud Computing Plans – Cloud Computing Creates New Roles & Functions
Cloud investments are and will impact the structure and operations of the IT department.
In the next 12 months, cloud is expected to
- Increase IT/business collaboration 49%
- Enable the company to rethink its IT organization structure 48%
- Allow it to retrain or reposition current IT staff more effectively 43%
- Create openings for new IT talent and skills 41%
More than two-thirds (69%) report that cloud migration created new roles and functions within the IT department
- Cloud architect/engineer 34%
- Cloud systems administrator 33%
- Security architect/ engineer 30%
- Cloud systems engineer 22%
- Cloud network engineer 20%
Understanding Cloud Computing Plans – Top Business Goals Driving Cloud Investments
Respondents report that the primary reason for their cloud investments is to enable IT to meet business demands for speed, agility, and responsiveness. Asked to rank their top business goals or objectives most responsible for driving investments.
The most frequently cited improving business goals or objectives most responsible for driving investments are:
- The speed of IT service delivery 71%
- Increasing flexibility to react to changing market conditions 63%
- Enabling business continuity 58%
- Improving customer support and services 57%
Companies say they use SaaS solutions to save IT staff time and ultimately improve the customer experience. SaaS investments are driven by the hope to:
- Decrease manual maintenance 62%
- Increase productivity 55%
- Improve end user experience (53%
- Provide greater access and reliability 53%
Companies say they’ve implemented IaaS solutions for
- Scalability 68%
- Flexibility 53%
- Reliability 51%
- Increased agility 51%
Companies that deploy PaaS cite the need to
- Save time and costs, particularly the ability to eliminate server and storage overhead 56%
- In-house maintenance and updates 51%
- Developers allow for faster and more agile process 48%
- Support personnel costs 48%
How IT Decision Makers Evaluate Cloud Vendors
- 82% Participate in product demos and trials
- 78% Read content on the vendor’s website
- 74% Read peer reviews and recommendations
Understanding Cloud Computing Plans – Cloud Computing Buying Process
Companies take an average of 4 months to evaluate a new cloud vendor of any type, however, this evaluation process differs by cloud model.
The average evaluation period for companies considering a SaaS vendor is four months, but 63% make a decision in 1 to 8 months, 15% make a decision in less than a month and 12% take 8 months or more.
Companies considering a PaaS vendor average 5 months of evaluation, with most (60%) finishing their evaluation process in 1 to 8 months but 16% take 8 months or more to make a decision. But, 14% take less than a month.
Businesses take an average of 5 months to evaluate an IaaS vendor, with 64% taking 1 to 8 months and 14% needing 8 months or more. But12% take less than a month.
Understanding Cloud Computing Plans – Summing it Up
Organizations are no longer questioning whether they should move to the cloud. Organizations are now focusing squarely on how best to leverage the new generation of cloud services by adopting new delivery models and enabling multi-cloud architectures. Albeit that the initial motivation to move to cloud computing may have been based solely on cost savings, however, organizations now want to increase the speed of IT delivery, increase agility, enable business continuity and improve customer support and services. As organizations focus on these additional business benefits it increases the complexity of their cloud environments,with lasting ramifications for the way they staff their IT departments and manage their IT infrastructure. And, cloud computing requires new people, skills and processes to truly be embraced and embedded into the organization.