Cloud Computing

Adoption and Opportunities

in the Enterprise

Current State of the Cloud

Organizations
Cloud Growth

%
69

Plans to use cloud-based

applications and/or
computing infrastructure

have at least
one application
in the cloud

18% within 12 months

13% within 1 to 3 years

%
56

%
38

of organizations
have identified all
IT operations that
they are comfortable
hosting in the cloud

of organizations
are still identifying
operations that
are candidates
for cloud hosting

Up from
33% in 2013

Cloud Investments
Whos Involved in the Cloud
Enterprise Purchase Process?
1,000+ employees

70%

<1,000 employees

55%

45%

IT/
Network
Mgmt

Cio or
Top IT
Executive

SMB

57%

43%

CEO

IT/
Network
Staff

63%

IT innovation

62%

Access to critical business

data and applications

58%

CFO

Cio or
Top IT
Executive

52

Since cloud investments,

organizations have seen
an increase in
IT agility

33%

say there
will be no
impact on IT
headcount

What will drive 1.

future cloud
Lower total cost
2.
of ownership
investments?
Speed of
deployment

3.

Replacing on-premise
legacy technology

Average
Investment

Cloud
Investments
Up

$1.6M
%
$3.33M

19

1,000+
Employees

<1,000

over 2012

Employees

$400K

Percentage of IT Budget Allocation to Cloud in 2015

Where will this money go?
IT
Budget

Softwareas-a-Service

24

49%

Cloud
Spending

Infrastructureas-a-Service

28%
18%

Platformas-a-Service

5% Other

Choosing the Right Model

Which cloud models are
currently being used?

What will move to the

cloud in 1-3 years?

60
%
57
%
19

public cloud

37%
35%
34%

Private cloud

data storage/data
management
business/data
analytics
collaboration/
conferencing
services

43%

of these tools
are already
in the cloud

Hybrid cloud

What influences implementation?

52

But security
is a concern

of organizations have updated

their existing cloud services
or are planning to over the
next 12 months.

%
56

say they need to ensure

that cloud service providers
can meet their security
compliance requirements

Where does cloud spending come from?

28

But

%
70

of cloud
spending
will be
outside of
IT in 3 years

of CIOs/IT Execs
are still involved
in the cloud
purchase decision

%
45
of cloud related
projects return
back to IT
ownership

Challenges and Strategies

Top Challenges for Public Cloud

Uncertain ability
to enforce
security policies
at a provider site

Access across
an untrusted
network

2013

2013

2014

2013

2014

28%

45%

39%

44%

2014

59%

56%

Uncertain
ability to
audit provider

Enterprise strategies to manage

data security in the cloud

63

implement
identity/access
management
controls

59

49

extend corporate
security policies
into the cloud

What can
vendors
do to help?

Build trust!

develop IT security
talent/increase
training
investments

1.
2.
3.

80

of organizations
have created, or
plan to create a
governance policy

Provide security reporting and

updates to customers/clients
Implement monitoring and access
control policies and procedures
Incorporate security into the
system development lifecycle

Emerging Technology & the Cloud

Whats happening with software-defined
networking and virtualization?

%
61
Evaluating SDN and
network virtualization
investments

%
62

%
53

Cloud service providers

must embrace SDN/
network virtualization
for cloud agility

SDN/network
virtualization will be
critical to cloud plans
in next 2 years

Cloud Computing Study 2014

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