Survey: Cost, scalability are primary drivers for cloud usage

Survey: Cost, scalability are primary drivers for cloud usage

Summary: There's nonstop talk about how cloud computing is in its infancy this week at GigaOm's Structure conference in San Francisco. Nevertheless, more companies are favoring the cloud each day for different reasons, but there are a few that stick out.

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There's nonstop talk about how cloud computing is in its infancy this week at GigaOm's Structure conference in San Francisco. Nevertheless, more companies are favoring the cloud each day for different reasons, but there are a few that stick out.

According to the "inaugural Future of Cloud Computing Survey," the primary drivers for cloud usage are more flexible scalability and the potential for lower costs on the part of the customers.

But agility and innovation have been found to be the key factors as to why IT departments are adopting the cloud because it is seen as an "effective means to implementing new applications quickly to keep pace with application backlogs and business demands." That's not terribly surprising so long as the cloud infrastructure is built with the idea of scalability in mind, or else a speedy implementation is probably out of the question.

Let's take a closer look at some of the survey highlights:

  • Most respondents have been using some sort of cloud-based solution for at least 20 months
  • 40% of respondents are currently experimenting with moving operations to the cloud
  • 26% of respondents are waiting for market maturity before attempting a formal move to the cloud
  • 31% of respondents cited security and compliance as "key obstacles" to cloud adoption
  • 25% of respondents said that these are "roadblocks" to joining the cloud
  • Most cited drivers for long-term cloud adoption: Maintaining competitive differentiation, mobility and ensuring application interoperability through the use of open cloud APIs
  • 55% of respondents believe that cloud computing has a lower total cost of ownership

For reference, the survey incorporated the responses of 413 participants from both the vendor and end user communities. It was conducted by a trio of companies heavily invested in cloud computing as well as the annual Structure conference: North Bridge Venture Partners, GigaOM Pro and The 451 Group.

One of the side effects of cloud computing that seems to be getting sidetracked is what could happen to IT personnel. The survey found that respondents were split on the impact of cloud computing on IT manageability, and at least 74% of respondents think cloud computing would lead to an increase in hiring or might not have an impact at all.

However, just over a quarter of respondents think that cloud computing cloud lead to a decrease in hiring. That doesn't necessarily mean layoffs, but it does point to suspicion about less jobs being available in a time when most people would agree that the more job opportunities out there the better. After all, many panelists at Structure this week have repeatedly argued that cloud adoption will lead to lower costs in IT management, which could also point to a smaller headcount in relevant departments.

That is in no way to say that we should abandon the current path to evolving cloud computing as it really could change the way businesses run online for the better, but it's something to still consider.

Related:

Topics: Cloud, Hardware, IT Employment

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4 comments
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  • Legal compliance

    That is the biggest hurdle, especially over here, in the EU. Finding a cloud provider that will guarantee that you data (especially PII data) will not leave the EU is still nie on impossible.

    If a company uses a cloud provider and the cloud provider decides that storing the data in the EU doesn't make sense and they store it in America, Russia, India etc. then the company is liable to prosection for letting its PII data leave the EU without getting authorisation from every employee, customer or creditor that can be identified in the data!

    The cloud providers, especially American cloud providers, have the problem the other way round. They have an obligation to their customers, to ensure that their data doesn't leave EU bounds, yet they are beholden to the Patriot Act, which says gives the authorities the right to force the cloud provider to violate the laws under which the data is stored and move it to the USA (or make it available in the USA) for inspection by the US authorities, even though that is in direct violation of the laws to which the "owners" of the data are beholden.

    Until the megalomaniac idiocy of the DHS and the Patriot Act are reigned in, cloud computing is a very difficult sell for USA based providers (or providers with servers or offices in the USA).

    Looking from the outside, the "land of the free" seems to have quietly given up its freedom and returned to the indentured slavery of its population.

    When I was younger, the USA was looed up to as an ideal of freedom, now I wouldn't want to live in Gitmo Nation if you paid me...
    wright_is
  • Gluster agrees with the survey - A new approach is helping users

    This survey mirrors what we have been seeing with our customers at Gluster in regards to their motivations for cloud adoption. However, cloud storage as a service must evolve and expand to keep up with the high scalability demands and innovation of the computing side. At Gluster (www.gluster.com), our approach is to deliver enterprise-class network attached storage (NAS) with high availability via local and remote replication capabilities in both public and private clouds while enabling performance and capacity to scale linearly and non-disruptively.
    thomasaaa6
  • Cost of Cloud is a Removable Barrier

    With regards to this comment - "55% of respondents believe that cloud computing has a lower total cost of ownership" - it's essential to not only believe that cloud has a lower TCO, but to prove to executives that cloud has a lower TCO. However, this can be very difficult as cloud vendors' pricing (for IaaS) can be very difficult to see, trend, and predict in real time.

    Companies need to be able to track cloud cost and capacity in real-time and associate those costs with SLAs, line-of-business, applications, etc.

    Enter uptimecloud, from uptime software. uptimeCloud is the simple way to manage cost and capacity in the cloud by tracking real-time, dynamic pricing of cloud and providing an immediate and accurate monthly cloud cost run rate in a simple dashboard. This helps remove cloud cost risks/unknowns for SMBs, mid and large enterprises alike and allows IT to split cloud usage by line of business, application, service, IT project, or however they choose.

    http://www.uptimecloud.com
    nickjo30
  • RE: Survey: Cost, scalability are primary drivers for cloud usage

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