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Cloud Worries Dissolving with Service Provider Assistance

December 31st, 2012 by - 3,579 views

Today’s cloud computing world is rapidly maturing, especially as more users migrate mission-critical resources to the hosted environment. As the cloud continues to evolve, many decision-makers will become increasingly confident in the technology’s ability to keep sensitive assets protected, enabling vendors to watch their services reach full-scale adoption.

A recent study by KPMG International highlighted this ongoing phenomenon, noting that cloud computing revenue will double in size during the next two years, largely because companies are moving more mission-critical, data-rich applications to hosted environments.

Cloud worries dissolving with service provider assistance

Cloud worries dissolving with service provider assistance

In the past, decision-makers were somewhat intimidated by the cloud. In today’s world, executives are less worried about falsified security concerns and more interested in saving money, as roughly 60 percent of service providers said cost savings was the primary driver behind the adoption of their offerings, KPMG reported.

“While providers are seeing the challenges of a maturing, yet still relatively young, market, we are at a pivotal point in the evolution of the cloud ecosystem as users become more comfortable with a variety of cloud applications,” said Gary Matuszak, an executive at KPMG’s technology, media and telecommunications practice. “Leading cloud providers know they must evolve to provide a new level of scale, capacity and capability.”

Addressing challenges in the industry
The primary difficulty most service providers are having is supplying evidence to users about real cost-saving opportunities, as only 39 percent of vendors believe cloud users have a realistic idea of the cost-reducing capability of the cloud, KPMG noted.

KPMG said cloud providers with tightly-wound service-level agreements (SLAs) will likely eliminate confusion or worries about the cloud.

Another difficulty within the cloud industry is the fact that organizations are demanding a wide range of services and are unsure how to deploy the tools efficiently. KPMG said even though the majority of their customers are using Software as a Service and are likely do so during the next two years, Platform and Infrastructure as a Service are gaining momentum very quickly and will likely have the greatest increase in adoption rates within the coming years.

A separate report by Market Research Media also highlighted the rapid growth of the cloud, noting that the industry is estimated to expand at a compound annual growth rate of 30 percent through 2020. This will largely be driven by the fact that decision-makers are becoming more confident in the cloud’s capabilities and less worried about enduring concerns.

“The anticipated migration of core systems and critical infrastructure to cloud in the next two years will be complex undertakings; users will be requiring, if not demanding, strategic direction and guidance from providers across a broad range of areas,” said Tom Lamoureux, global advisory leader of the KPMG technology sector. “The lines are blurring across the various types of cloud services; users need and want to understand cloud’s value and immense power much better than they do.”

With the help of cloud vendors across the sector, companies of all sizes can adopt the cloud and feel the full potential of its power, including the ability to reduce IT expenses and enhance storage capabilities through the solution’s scalability. Decision-makers that adopt the technology will also be able to optimize virtual environments through the use of advanced cloud servers, which enable even small organizations to have enterprise-level infrastructures.

In many cases, concerns about the cloud are ungrounded and produced by skeptics who are fearful of change. By consulting with a trusted service provider, businesses can embrace the cloud revolution to gain a competitive advantage over other organizations.

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