The Second Wave of Cloud Computing
By David Linthicum
A 2015 study from Cisco and IDC , called “ Don ’ t Get Left Behind : The Business Benefits of Achieving Greater Cloud Adoption ,” surveyed more than 3,600 enterprise executives about their current and planned cloud usage . The study found that 53 percent of companies expect the cloud to drive increased revenue over the next two years . Of those surveyed , 64 percent are either using or planning to use a hybrid cloud strategy , with 44 percent using or planning to use a private cloud for their business .
Keep in mind that Cisco has a private and hybrid cloud “ dog in the hunt ,” so the results are not surprising . However , given the explosive numbers from public cloud providers , and what seems to be a general acceptance among enterprises that cloud-based platforms don ’ t have the same amount of risk as once thought , cloud computing is currently undergoing what has been termed “ the second wave .”
Enterprises are joining the second wave to stop spending millions on hardware and software infrastructure by moving to the cost efficiencies of cloudbased platforms . A study by CDW of 1,242 IT professionals found that more than half of their organizations are moving a variety of capabilities to the cloud . And a majority of them are already recognizing cost savings and increased profits .
The CDW study found that 88 percent of cloud users saw cost savings , and 56 percent of those polled agreed that cloud services have helped increase profits . Additionally , 60 percent of respondents said cloud computing has reduced the need for infrastructure maintenance by their IT team .
Beyond cost saving , enterprises pursue cloud to become more agile and decrease time-to-market . The use of public cloud-based platforms , for example , can provide almost instant provisioning of compute and storage resources as they ’ re needed by the business . This eliminates months of hardware and software procurement cycles , so the enterprise can stand up applications and databases that allow them to move quickly into a new market , or make needed shifts in the business . In other words , cloud-based platforms are giving enterprises the ability to operate at the “ speed of need .”
Upsides and Downsides
What will have the biggest impact on cloud adoption going forward ? The current drivers are largely initiated by the success of other enterprises in the cloud .
The level of cloud adoption is fast reaching a “ tipping ” point , where inhibitors such as security and privacy concerns fall off the radar screen , as enterprises see the successful adoption by others , including competitors .
4 | THE DOPPLER | SPRING 2016