There are many indicators to substantiate the fact that cloud adoption is going be an extensive phenomenon across all US and Non-US based industries in 2017. The prediction has a sound foundation of 2016 Enterprise Cloud Computing Survey by IDG.
Dominating cloud trends in 2017
The budgetary provisions for cloud spend are considerably higher for US based enterprises than Non-US enterprises and almost ten percent of enterprises that are having more than one thousand employees are planning to earmark $ 10 million or even more for acquiring cloud computing apps as well as platforms.
There is going to be a comparable mix of public and private cloud models with a decent number of organizations adopting hybrid cloud capabilities. This shows growing acceptance of multiple clouds by business enterprises. Quite predictably, enterprise IT departments will position more platforms and apps in cloud environment rather than on-site infrastructures. The ration is going to be 60:40.
The survey was aimed at improving understanding of cloud adoption at the level of organizations and involved decision makers from across six industries. It also attempted to cloud use cases solution requirements of cloud computing.
Ushering the new normal
Cloud is poised to assume status of a default environment for positioning enterprise apps according to this survey. There are more than 70 percent organizations that have positioned at least one platform or a single app in the cloud. It is also projected that barring just ten percent, almost all organizations are geared up to use have cloud apps running in the cloud. Adoption of apps in the cloud is certainly going to accelerate further, even beyond 12017.
In case of business/ data analytics and management as well as storage of data 43 percent companies are planning cloud adoption with 22 percent of organizations already committed to migrate to cloud by adopting cloud based apps in the domain of business data analytics. This is further supported by an equal number of organizations that are planning to migrate to cloud in 2017.
Cloud Hosting models contributing to enterprise IT
Cloud is going to command a major portion of IT budgets with 28 percent of IT budget being dedicated to cloud based services. Out of the total budget for cloud computing major portion is allocated for SaaS (45 percent) followed by IaaS (30 percent), and PaaS (19 percent).
While the average spending by organizations in cloud adoption remains to be constant, there is a considerable growth in spending by organizations that have more than 1000 employees.
Cloud computing set to span majority of firms
It is revealed by IDG that almost a third of all organizations covered under the survey opined that they will be embracing private clouds in their IT infrastructure while public cloud will be adopted by about 22 percent. The adoption of hybrid cloud will be touching double digit of 10 percent.
Contrary to the common belief that IT architects and executives from IT networking/ management are in charge of cloud spending, the new-year 2017 will witness active role of CFOs, CEOs, and CIOs. These decision makers will influence spending in small and medium enterprises to drive cloud adoption.
Data access to get big boost
Introduction of multiple solutions that facilitate collection of data across different locations will improve data accessibility. This will be backed by cloud based tools that will help even non-technical individuals to derive meaningful observations by analyzing information from diverse sources.
Considering the availability of huge market for simplified technologies in the domain of big data, there will be considerable progress in this direction. The new applications will be based on cloud computing and will help simplify use of big data technologies. This underlines need to develop integrated solutions that mitigate number of settings of profiles and are available throughout the board.
In the backdrop of a remarkable enthusiasm about cloud adoption, which is evident from these figures, we need to understand some of the concerns as well. The biggest impediment is concern about the data storage location in cloud as expressed by 42 percent respondents that is closely followed by concerns about cloud security (41 percent) and vendor lock-in (21 percent).
These concerns are retarding cloud adoption to some extent. Since more and more countries are setting new regulations about data privacy, it is predicted that organizations that adopt cloud and are engaged in handling trans-continental workloads will have to proactively think and decide the way they would be using the data in the backdrop of stringent data regulation measures adopted by local governments.
The new-year brings with it a plethora of opportunities as well as challenges. While cloud adoption will be driven by data storage and data analytics in the approaching year we need to look at the diversity of sources that would be generating huge data due to Internet of Things. The horizons of data security are set to expand and will require new data management systems and while new approach to data security.