There are many published reports available that point out that both analytics and data storage facilities are going to promote use of cloud. In fact, this trend can lead to enhanced adoption of cloud in the current year (i.e. 2017).
In fact, the data center market is witnessing some serious changes, change in momentum, and many others. In fact, the business development is being driven by varied adoptions of data center facilities including cloud hosting. If you are looking forward to twin business requirements of business continuity as well as improvement of organizational productivity, adoption of new as well as innovative technology. Perhaps this is one of the reasons why there is a remarkable pace in adoption of cloud. Studies have found out that there would be an unprecedented fast rate of adoption of cloud in 2017 and the main push would come from the data analytics and cloud storage facilities.
What do the Reports Say?
• Reports say that in the ongoing year (i.e. 2017), total cloud budget of US-based organisations will be around $1.77 Million. There will also be significant growth in the same for non-US-based organisation but will lag behind the US based companies. For the non-US based companies’ cloud spending in 2017 is estimated to be $1.30 Million.
• Medium to large enterprise businesses, especially those who have employee-strength of more than one thousand are pledging to spend $10 Million or even more in 2017 itself.
• For meeting business needs, multiple cloud models are being utilized such as Public cloud, private cloud, and hybrid cloud. Most popular share is held by private cloud (62 per cent), closely followed by public cloud (62 per cent) and hybrid ones (26 per cent).
• By the end of next year (i.e. 2018), the on-premise system will be replaced by the application and platforms.
All these findings and forecasts are on the basis of IDG’s Enterprise Cloud Computing Survey, 2016. The survey has been conducted on 925 respondents.
What are the Takeaways?
There are multiple takeaways from this survey and the most important ones, especially related to clouds, are given below –
- When it comes to enterprise applications, cloud has become the new normal. It has been found out that 70 per cent of the organisations that have at least one application uses cloud hosting solution for computing and storage purposes. If the enterprises having over 1000 employees are taken into consideration, the study found out that 75 per cent of the enterprises run at least one application in the cloud.
- Around 90 per cent of the organisations currently are either planning to have cloud based applications in the coming one year to three years or already have cloud based apps that are running successfully. If the trend is taken into account it seems the adoption rate of cloud is going to pick up further in 2017.
It has been projected in 2017 and in the coming years, two categories will lead cloud adoption and they are –
- Business or data analytics
- Data storage or data management
Both of them account for 43 per cent of the total cloud business.
The survey also indicated that 22 per cent of the sample organizations have the plan of migrating to cloud application in the coming 1 year time. 21 per cent of the sample organizations are placing data storage/data management apps to be in the priority list within cloud migration plans of 2017.
• Around 28 per cent of the surveyed organizations have been found to have dedicated their IT budget to cloud computing in 2017. If cloud computing is again segregated on the basis of services, the following results have been found –
45 per cent of the total IT budget is allocated to SaaS (Software as a Service)
30 per cent of the total IT budget is allocated to IaaS (Infrastructure as a Service)
19 per cent of the total IT budget is allocated to PaaS (Platform as a Service)
It has been estimated that in the year 2017, the average investment the organisations are willing to make in cloud computing is $1.62 Million. When it comes to enterprises having over 1000 employees, the projected average spending will be $3.03 Million.
• APIs (Application Programmer Interfaces) are being used for integrating with storage components, portals, messaging systems, and databases by just 46 per cent of the surveyed organisations.
• The survey found out that IT infrastructure of most of the sample organisations will be based entirely on cloud in 18 months time. 1/3rd or 28 per cent of the surveyed organisations will have private hosting solution and 1/5th or 22 per cent have public cloud hosting solution. 10 per cent of the sample will be choosing hybrid hosting solution.