The primary priorities when determining use of cloud computing continue to be cost, timeliness, and resource optimization. We need to develop standard cloud computing metrics and ROI models to measure success.
Measuring ROI is tricky. In many cases cloud computing will not save money. Yet in appropriate situations the cloud can add value in technology agility and flexibility.
Throughout 2012, Cloud Computing has continued to become commonplace within enterprises worldwide. In order to better understand Cloud adoption and the drivers behind Cloud implementation, The Open Group surveyed IT professionals for the second straight year regarding Cloud initiatives, concerns and ROI measurement mechanisms. The findings of both surveys are compared in this report.
For the Cloud ROI Survey, The Open Group surveyed IT professionals at the C-level, Director and Manager levels - 91.2 percent of whom are either actively researching Cloud Computing for business use or are already implementing Cloud services. According to those surveyed, the key drivers within organizations for implementing Cloud services are cost, timeliness and resource optimization. Other key findings included:
• Private and hybrid clouds remain the most popular deployment options by over 20 percent in 2011 and over 30 percent in 2012
• Fewer organizations have ROI mechanisms in place in 2012 compared to 2011 – 19.5 percent versus 35.4 percent
• Cost, delivered results and speed of operations continue to be the most popular ROI metrics
• The biggest concerns with Cloud continue to be security, integration issues and governance
• A large percentage of respondents in both 2011 and 2012 are creating new information security controls to address security and privacy concerns surrounding the Cloud
• There has been a drop in the level of satisfaction with cloud deployment education (36.6 percent in 2012 v. 51.6 percent in 2011)
Download the report below:
The following tables - from Gartner's "Forecast Overview: Public Cloud Services, Worldwide, 2011-2016, 4Q12 Update Published: 8 February 2013" - provide insights into each category of public cloud computing spending throughout the forecast period.
Gartner recently released "Forecast Overview: Public Cloud Services, Worldwide, 2011-2016, 4Q12 Update Published: 8 February 2013." The following is a brief summary:
Global spending on public cloud services is expected to grow 18.6% in 2012 to $110.3B, achieving a CAGR of 17.7% from 2011 through 2016. The total market is expected to grow from $76.9B in 2010 to $210B in 2016. The following is an analysis of the public cloud services market size and annual growth rates:
Gartner predicts that Infrastructure-as-a-Service (IaaS) will achieve a compound annual growth rate (CAGR) of 41.3% through 2016, the fastest growing area of public cloud computing the research firm tracks. The following graphic provides insights into relative market size by each public cloud services market segment:
Platform-as-a-Service (PaaS) will achieve a 27.7% CAGR through 2016, with Cloud Management and Security Services attaining 26.7% in the same forecast period. Software-as-a-Service’s CAGR through 2016 is projected to be 19.5%. The following graphic illustrates the differences in CAGR in the forecast period of 2011 – 2016:
Gartner is projecting the SaaS market will grow at a steady CAGR of 19.5% through 2016, having increased the forecast slightly (.4%) since its latest published report. Global SaaS spending is projected to grow from $13.5B in 2011 to $32.8B in 2016.
CRM will continue to be the largest global market within SaaS, forecast to grow beyond $5B in 2012 to $9B in 2016, achieving a 16.3% CAGR through 2016. The highest growth segments of the SaaS market continue to be office suites (49.1%), followed by digital content creation (34.0%). The following graphic rank orders CAGRs across all public cloud services segments from the forecast period:
59% of all new spending on cloud computing services originates from North American enterprises, a trend projected to accelerate through 2016. Western Europe is projected to be 24% of all spending. A graphic comparing total spending by geography and corresponding growth rates is provided below:
Dimensional Research conducted a survey of business and IT leaders on the drivers of cloud adoption. Key findings include:
• Cloud adoption is driven by multiple factors
- CIOs report a wide range of reasons for adopting cloud applications, including compliance requirements
(58%), better value (53%), and competitive advantage (51%)
- Business executives cite one key driver for choosing cloud applications, better value (80%)
• Employees like using cloud applications
- 79% of all participants report that employees believe experience with cloud applications is beneficial
- 95% of CIOs say that IT employees want to gain expertise with cloud applications
- 83% of CIOs have no problem finding technical help for cloud applications
• Outdated on-premise software is common
- 61% report critical applications that have not been updated recently
- 14% have business critical software that has not been updated in over four years
- 28% of CIOs with current maintenance requirements for business-critical software lack confidence that they
are in compliance