Enterprise Cloud Adoption by the Numbers

Enterprise Cloud Adoption BY THE NUMBERS The majority of Enterprise Cloud adopters underscore their commitment to moving larger parts of their IT establishment to the cloud, as they expect to derive greater business value from the cloud technologies in the future. Cloud is evolving from a cost reduction initiative and moving towards an enabler of topline growth for Enterprises. Cloud Adoption is Widespread Cloud sellers are still pitching cost savings but Enterprises are looking for more. SELLER BUYER TOP ADOPTION DRIVERS Rank of Reduction in Cloud is not just another IT fad passing through the night, cloud adoption is broadening as brighter benefits appear on the horizon. ACCORDING TO: TCO as a driver for cloud adoption: #1 #5 BUYERS: SELLERS: 57% of Enterprise are using Software as a Service (SaaS) applications Reduced time for pro- visioning application/ infrastructure Reduction in TCO (Total Cost of Ownership) Flexible infrastructure Flexibile infrastructure THERE IS A GROWING DISPARITY BETWEEN 38% have adopted Platform as a Service (PaaS) solutions. capacity capacity WHAT CLOUD BUYERS AND SELLERS IDENTIFY AS BARRIERS TO ADOPTION. Limited in-house technical resources Reduced time for pro- visioning application/ infrastructure APPLICATIONS ALREADY MIGRATED OR IN THE PROCESS OF BEING MIGRATED TO THE CLOUD INCLUDE: #1 BARRIERS SELLERS: "Lack of management buy-in" Desire to "variabilize" Desire to "variabilize" FOR ADOPTION: cost cost Application development/ test environments Business Reduction in TCO (Total Cost of Ownership) Limited in-house Disaster recovery and storage Email/ collaboration intelligence/ analytics BUYERS: "Security concerns and integration" technical resources Industry-specific Industry specific reasons reasons This ranks last 54% 45% 41% 35% on buyers' list of adoption barriers 3 Cloud is becoming an enabler of topline growth Service providers need to adapt to the "Next Gen Buying Center" and shift discussions away from the traditional cost based value proposition. Buyers ranked reduced time for provisioning applications and flexible infrastructure as their top cloud adoption drivers were satisfied with the current results from their cloud initiatives 82% 71% of cloud buyers met their of cloud buyers met 88% expect to achieve greater benefits flexible infrastructure their quicker time to objectives market objectives from cloud solutions in the future CLOUD CONNECT