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Seven in ten firms now use cloud for mission critical apps

by Mark Adams, on October 30, 2014

Original article at http://www.cloudpro.co.uk/cloud-essentials/4582/seven-in-ten-firms-now-use-cloud-for-mission-critical-apps

Seven in ten firms now use cloud for mission critical apps

Cloud now part of the mainstream for enterprises

Over 70 per cent of organisations are using the cloud to run mission critical applications, according to a recently published report.

According to figures published by Verizon in its State of the Market: Enterprise Cloud 2014 report, 71 per cent of its customers are using the cloud for mission critical apps, up from 60 per cent in 2013.

The report also found that enterprise spend on the cloud is up 38 per cent year on year. Around 84 per cent of firms that have adopted the cloud said that uptime was the most important factor in selecting a cloud service, while only 14 per cent of those surveyed said cost reduction was the main motive for them moving to the cloud.

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The research, which draws its data from surveys of its own customers and third party studies of the wider market, found that more than 80 per cent of cloud spending is managed by the IT department, and over half is managed directly by the CIO.

The report said that this suggested that “IT and the lines of business respect each other's expertise and are working together to achieve the best results”.

According to the survey, conducted by 451 Research on 988 IT leaders on behalf of Verizon, shadow IT was spurring on CIOs' adoption of the cloud. The report said that few of the IT leaders it had spoken to wanted to “hold the business back or stymie innovation”.

“If they ever showed any hesitation in seizing the opportunities that cloud presented, it was only reasoned caution about exposing the business to compliance issues, security breaches, and other risks. This concern wasn’t unique to cloud, it’s a fundamental part of the role of the IT function to ask these sorts of questions of any new technology,” the report said.

The research said that in response, cloud providers have also bolstered their own offerings so that they can offer complete cloud solutions that incorporate the infrastructure, as well as essential networking and security capabilities. The result is, according to the firm, diminished frequency of shadow IT deployments, clearer enterprise expectations and greater service-provider transparency and performance.

“As the technology underpinnings of the cloud have matured, it has become an established delivery platform for application workloads and fundamentally redefined the relevancy of IT to the broader organisation,” said Siki Giunta, senior vice president of cloud services for Verizon Enterprise Solutions.

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