When cloud computing first emerged, IT analysts had mixed feelings about the hosted services, unsure if they would be embraced or disregarded in the enterprise. Today, experts understand that the cloud now plays a central role in the ongoing development of the business world, providing decision-makers and employees with innovative solutions for growth and performance improvements.
Companies are using a mix of different cloud models, including Platform, Software and Infrastructure as a Service, all with positive results. In fact, a recent CA Technologies survey of IT decision-makers who have been using the cloud for at least a year found that the benefits of using the hosted solutions are exceeding many respondents’ expectations.
Many executives highlighted the cost-saving advantages of the cloud. This is because the ongoing use of the cloud is allowing decision-makers to become more familiar with the technology and, as a result, establish new goals and objectives. “Cost is often considered an early benefit – or even a required result – in order for IT teams to justify moving in the direction of the cloud,” said John Michelsen, chief technology officer of CA Technologies. “Once they show that cloud computing improves the bottom line, they can shift their focus to innovation and other objectives, such as increased performance and enhanced security.”
Who is using the cloud?
CA Technologies found several unique distinctions between organizations planning to invest more in cloud servers and other solutions within the next year and firms that are still on the fence. First, businesses that have been using the cloud for four or more years are roughly six times as likely to spend more money on the hosted services in 2013 than their counterparts that are relatively newer to the environment. This suggests that companies that have done more than just tested the water are more comfortable with the cloud and are experiencing greater results.
Second, the study found that organizations in the United States are more likely to invest in the cloud this year than businesses in the U.K., France, Germany, Italy and Benelux. In fact, 48 percent of U.S. respondents stated they plan to up cloud spending by up to 30 percent, while another 17 percent will invest even more. This is a stark contrast between the 42 percent and 4 percent, respectively, of European IT decision-makers.
Finally, the survey revealed that larger organizations are more integrated with the cloud than their smaller competitors, as 93 percent of respondents that claimed to be using the cloud for at least four years have annual revenues exceeding $1 billion.
“Going in, we expected the results to be much more balanced between successes and challenges across a variety of deployments and service models,” Michelsen said. “Surprisingly, survey respondents were pleased with their cloud computing initiatives, which validates that the cloud is not just a fad, and instead they are focusing on making the most of it to drive innovation, speed and performance.”
The presence of a cloud infrastructure can give organizations new opportunities to invest in other projects. A recent Gartner report actually noted that IT spending in 2013 is forecast to reach $3.7 billion, a jump of 4.2 percent from 2012. While there are a number of factors contributing to this growth, the ongoing adoption of the cloud is likely a major player, as using the solutions enables businesses to have a more flexible architecture that can support the use of next-generation technologies.
By understanding the evolving cloud landscape and how using the services can improve operations, decision-makers around the world can invest more wholeheartedly in the cloud to experience new advantages.
Latest posts by Team GoGrid (see all)
- Big Data is the New Black - August 22, 2014
- Big Data to Assume a Major Role in 2014 Hurricane Season - August 20, 2014
- How Big Data Can Affect the Way We Learn - August 13, 2014