The Hype Was Right on Cloud Computing

Michael Friedenberg, President and CEO of IDG Enterprise, shares data from our recent survey on cloud computing that shows actual adoption is well under way.

By
Mon, April 11, 2011

CIO — For a few years now, everything we’ve heard about cloud has mostly been hype. It’ll be the next transformational leap for technology, the pundits said. It will cut complexity, improve flexibility and make IT more strategic to business, the vendors said. It’s going to be so great when it gets here, the marketers said.

But what a pleasant surprise: Cloud computing really did arrive. Actual adoption is under way everywhere, at least to some degree.

In a recent IDG Enterprise study on cloud, which surveyed 1,535 of your peers, the findings were quite conclusive. Pent-up interest is becoming full-fledged adoption. A few of the survey’s most interesting takeaways are:

Enterprise organizations use private cloud most often, with 23 percent now using private versus 7 percent public.

Small-to-midsize businesses spend larger chunks of their IT budget on cloud, averaging 20 percent for companies with fewer than 1,000 employees. Larger enterprises are earmarking around 15 percent of their IT budget for cloud.

Budgets are increasing for cloud-based services, with big companies expecting the percentage of their IT budget dedicated to cloud to increase 67 percent in the next 12 months. On average, large enterprises plan to spend $2.2 million on cloud this year.

The top two business drivers for cloud adoption are business continuity and greater flexibility to ramp up or down with market demand. Least important? Saving on capital expenditures.

The biggest turn-offs to adoption are security concerns (67 percent) and access to information (41 percent).

So it’s clear that cloud is here to stay. The options you’ll have to evaluate will continue to multiply, and pretty soon we’ll be talking about cloud sprawl, cloud management and cloud resources as your staff readjusts to the changing industry.

You can click here to download our complete IDGE Cloud Study.

And as always, I love to know what you’re thinking, so drop me a line anytime.

Michael Friedenberg is the president and CEO of CIO magazine's parent company, IDG Enterprise. E-mail him at mfriedenberg@cio.com.

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