Businesses not using cloud computing are on the outside looking in

Businesses not using cloud computing are on the outside looking in

Posted by on Monday, May 18th, 2015  


Cloud computing has reached a point where it seems more companies are using the technology than those that aren’t. This makes is necessary for those hesitant to embrace the service to rethink their stance if they want to remain competitive with their closest rivals. A new RightScale survey discovered 93 percent of organizations rely on cloud suites or are experimenting with such applications. More than 80 percent of respondents have hybrid strategies in place, up 8 percent from 2014.

Although hybrid environments are gaining steam throughout the IT sector, firms are still benefiting from public-only models, as well. RightScale found 88 percent of businesses have implemented public clouds, while 63 percent have done the same with private environments.

The cloud market has plenty of room to grow

A majority of organizations may have already adopted cloud computing in some capacity or are planning deployments, but the market is still very much maturing. RightScale discovered 68 percent of enterprises host less than 20 percent of their applications in cloud environments.

“A vast majority of organizations are using cloud computing in some capacity.”

For organizations planning a cloud implementation, they have plenty of choices on their hands. Amazon Web Services (AWS) in particular has become the public leader, adopted by 57 percent of participants. Microsoft Azure’s market share of the Infrastructure-as-a-Service segment increased from 6 percent in 2014 to 12 percent in 2015, while Google’s IaaS suite experienced year-over-year improvement of 5 percent, reaching a 9 percent penetration rate.

Michael Crandell, CEO of RightScale, said the evolution of cloud adoption has evolved to a point where companies are now implementing cloud computing for strategic purposes.

“As enterprise IT has become more open to public cloud and more comfortable with cloud security, it is now in a strong position to broker cloud services to internal customers and drive cloud adoption forward. In the next year organizations expect to shift more workloads to cloud, with public cloud workloads growing faster than private cloud,” Crandell explained.
The global cloud computing market is so strong thanks to its accessibility. Enterprises with deep pockets are not the only organizations able to benefit from the technology. A new TechNavio report indicated the worldwide small and medium-sized business cloud industry will expand at a compound annual growth rate of more than 20 percent between 2014 and 2019.SMBs are also getting in on the action

Faisal Ghaus, vice president of TechNavio, noted cloud services enable organizations to reduce IT infrastructure spending by “a considerable margin.”

As RightScale highlighted, TechNavio also indicated hybrid clouds are gaining steam among companies.

“Cloud service providers have started designing applications that suit the hybrid model of cloud computing and provide [SMBs] with adequate control over their critical infrastructure,” Ghaus added.

With Amazon, Microsoft and Google devoting so much attention toward building functional and affordable cloud environments to customers worldwide, the marketplace is in a position to advance at a healthy rate moving forward. Firms that have yet to adopt the technology sooner than later may miss out on an opportunity to upgrade their infrastructures with flexible computing services.

Subscribe to RSS Feed

Sign Up for Newsletter

Leave a Reply