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Cloud Adoption Reaches a Long-Awaited Tipping Point - 2014 Cloud User Survey

  • July 2014
  • -
  • Frost & Sullivan
  • -
  • 13 pages

Summary

Table of Contents

In this SPIE, the first in a series of reports detailing the results of the 2014 Frost & Sullivan Cloud User Survey, we look at the IaaS adoption trends for public cloud services. Future analyses will delve into trends regarding private cloud adoption, user perceptions, service provider differentiation, and security. In each study, we consider the implications for cloud service providers.

Introduction
Since the dawn of the Modern Cloud Era, back in 2006 or so, industry experts have been predicting the new model would rapidly and thoroughly prevail as the dominant method for creating and delivering IT resources. After all, the cloud is more efficient, budget-friendly, scalable, faster to deploy, and simpler to administer than traditional methods. While the expected rapid shift to the cloud delivery model occurred in the mobile and consumer Software as a Service (SaaS) markets, businesses have been surprisingly slow to replace or augment their traditional data centers with cloud Infrastructure as a Service (IaaS).

Until now. The results of the 2014 annual Frost & Sullivan Cloud User Survey show that between April 2013 and April 2014, the number of United States-based companies that subscribe to IaaS services has more than tripled. Moreover, those companies are placing more applications and workloads into the cloud; even those considered proprietary or mission-critical.

But today’s IT decision-makers are embracing the cloud on their own terms. Even as the earliest cloud service providers touted their IaaS service as a tactical, even impulsive decision (no commitment, no contract, pay-per-use, capacity on demand!), enterprises are choosing to consider the strategic potential. As such, businesses today are evaluating their IT options, and developing strategic plans that include a range of data center environments. Cloud is no longer a goal, but an ingredient in a well-executed IT strategy.

For cloud service providers, there is still much work ahead. With so many options, businesses are showing little loyalty to a specific service provider. Furthermore, as shown in the survey, enterprises are less driven by an immediate need to trim the IT budget, and are starting to consider longer-term criteria, such as interoperability with other environments. They also are showing no signs of retreat from the on-premises, enterprise-managed data center; instead, considering IaaS as an extension of their own infrastructure. This requires cloud service providers to address enterprise challenges in integrating multiple, legacy environments.
In this SPIE, the first in a series of reports detailing the results of the 2014 Frost & Sullivan Cloud User Survey, we look at the IaaS adoption trends for public cloud services. Future analyses will delve into trends regarding private cloud adoption, user perceptions, service provider differentiation, and security. In each study, we consider the implications for cloud service providers.

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