Cloud Adoption Rising Says North Bridge and GigaOM in Latest Survey
Cloud computing adoption continues to rise in 2013 with 75% of 855 c-level executives at corporates, vendors and IT decision-makers questioned by North Bridge Venture Partners and GigaOM Research for their ‘Future of Cloud Computing Survey’ reporting its use. This is up from 67% in last year’s survey.
The 2013 ‘Future of Cloud Computing Survey’ was supported by 56 collaborating organisations and technology companies such as Reval and others, who shared sales figures and cloud computing uptake data to help North Bridge Venture Partners and GigaOM Research reach their conclusions. This year’s survey was the largest to date, say the partners, and examined viewpoints on drivers, inhibitors and opportunities in cloud computing across a variety of industries from treasury to banking.
The growth in cloud computing adoption is consistent with forecasts from GigaOM Research, which expects the total worldwide addressable market for cloud computing to reach $158.8bn by 2014, an increase of 126.5% from 2011.
Much of the growth is probably due to the financial constraints placed on companies, especially banks, since the 2008 crash with IT budgets slashed and capital expenditure funds scare, meaning essential work or upgrades are often outsourced to a cloud computing vendors as it represents less upfront cost. Those that do have the money – like treasuries at large multinational corporations (MNCs) – are typically hoarding the money due to the parlous economic situation unless a clear return on investment (ROI) case can be made.
“Reval brought its cloud-based Software-as-a-Service (SaaS) offerings to market in 2001 to meet the complex needs of treasury and risk management for large and medium-sized corporations,” said one of the participants in the survey, Reval’s chief technology officer (CTO), Philip Pettinato. “…hundreds of companies have followed our early adopters.”
This year’s 2013 survey finds several important shifts in why and how cloud computing is being used, the obstacles to adoption, where cloud decision-making resides within organisations, and how the vendor landscape is changing. It also serves as a barometer for the industry’s progression. Feedback from across the different categories of respondents was consistent, signalling a convergence of vendor and user needs. Further, the 2013 survey reveals that business is driving the revolution deriving clear benefits from cloud adoption in the form of continuous innovation and business agility to yield competitive advantage.
Survey highlights included:
“Clearly, even in the 3rd year of our survey, we’re still very early in the cloud-computing revolution,” says Michael Skok, a general partner at North Bridge Venture Partners. “Yet the cloud formations we identified in last year’s survey are on an unstoppable rise. Self-empowered consumers and businesses are taking the lead, and in many instances, regardless of IT [departments]. But IT is investing heavily too in both adapting internal infrastructures and adopting public infrastructure to respond ‘on demand’, while managing the inevitable issues of compliance and regulation through hybrid approaches.
“To realise the promise of the cloud, there is a clear call for the industry as a whole to help reduce complexity, and provide better interoperability,” he added.
According to David Card, vice president of research at GigaOM, technology buyers expect cloud adoption to make managing IT increasingly complex, “yet the plurality also expect overall better cost of ownership. That’s either wishful thinking or an intriguing opportunity for suppliers and systems integrators”.