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Why are organiztions adopting cloud computing?

By | September 14, 2010, 3:53am PDT

Summary: I’m co-facilitating a panel on overcoming the barriers to cloud adoption at the The Host and Cloud Transformation Summit, an event being put on by another business unit of The 451 Group, my employer. I thought you’d enjoy a list of factors that are leading organizations to move some workloads into a cloud computing environment. The [...]

I’m co-facilitating a panel on overcoming the barriers to cloud adoption at the The Host and Cloud Transformation Summit, an event being put on by another business unit of The 451 Group, my employer. I thought you’d enjoy a list of factors that are leading organizations to move some workloads into a cloud computing environment.

The 451 Group’s CloudScape research team conducted a small survey at the beginning of 2010. This data is going to be used as a starting point for the panel discussion. Here are the factors:

  • Flexibility in scaling IT up and down
  • Agility
  • Cost reduction
  • Quicker time to deliver services
  • Avoidance of capital expenditure
  • Quicker time to value
  • On-demand access
  • Pay as you go
  • Disaster Recovery
  • Transparency of costs
  • Other responses

I find it rather interesting that many suppliers spend most of their time talking about cost reduction or avoidance of capital expenditures when the folks who responded to this survey thought flexibility and agility ranked higher in their lists.

As a side note, I had the opportunity to speak with several members of the executive team of Blue Mountain Lab, CloudSoft, Enki and Host.net during the reception. It is amazing how much energy and creativity is being focused on cloud computing.

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Factor, Adoption, Dan Kusnetzky

Daniel Kusnetzky is a distinguished analyst and the founder of the Kusnetzky Group LLC.

Disclosure

Dan Kusnetzky

The Kusnetzky Group LLC is an independent technology industry research firm that focuses on system software, virtualization and cloud computing technology.

Dan's opinions are based upon research, personal experiences and actual use of technology. They are not based upon the relationships the company may or may not have with suppliers, end user organizations, the media, consultants or other analysts.

Dan's research is available on a subscription basis through the Kusnetzky Group LLC. Dan's attendance at industry events or at client meetings may be sponsored by the client. Clients may provide hardware or software for testing prior to the publication of analysis that includes that product. Clients may also provide shirts, jackets, coffee cups, folders, backpacks, pens and other event chotchkies. While nice, these don't effect Dan's opinions or insight about those clients or their products.

Biography

Dan Kusnetzky

Daniel Kusnetzky, Analyst and Founder of Kusnetzky Group LLC, is responsible for research, publications, and operations. Mr. Kusnetzky has been involved with information technology since the late 1970s. Mr. Kusnetzky has been responsible for research operations at the 451 Group; corporate and marketing strategy for Open-Xchange; system software and virtualization research at IDC; and program and product management at Digital Equipment Corporation.; Today, Mr. Kusnetzky focuses on system software, virtualization technology and cloud computing.

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RE: Why are organiztions adopting cloud computing?
FAULKNE 13th Oct
Good day to confirm this comment I would appreciate T h e b e s t o f Z D N e t d e l i v e r e d your website very nice to everyone Yes, Oracle is the only one with shared-disk architecture, but that is there advantage. It means you can add or remove nodes and the database lives on. In a shared nothing architecture, if you lose a node, you lose the system. I'm sure Oracle appreciates EMC highlighting their advantage.I also desire to signal in your RSS feeds. Thank you as soon as once again and maintain up the great operate Awesome post! Thank you very much || thanks for nice content this is really benefit to me.
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Lest we not forget
Dietrich T. Schmitz, ~ Your Linux Advocate Updated - 14th Sep 2010
to include a subtle but important factor:
Assets move off the balance sheet
No Amortization schedules, asset tracking
Purely expense driven (and predictable)
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Here's Why!
ddmattison 14th Sep 2010
"organiztions" need spell checking that only the cloud can provide.
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Contributr
RE: Why are organiztions adopting cloud computing?
dkusnetzky 14th Sep 2010
@ddmattison thanks. That's what happens when I'm typing at 2 AM.

Dan
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RE: Why are organiztions adopting cloud computing?
KralLord Updated - 6th Sep
@ddmattison I didn't mean to imply you can't run it, only that a HOWTO is still somewhat different than a DBaaS solution. Regarding in-memory and AWS incompatibility, very true. This is the exact reason that we keep multiple replicas for every datum in memory. Storage services, such as EBS, can and are used to persist the data. Thanks for the interest and the kind wishes. mario oyunlari motor oyunlari
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RE: Why are organiztions adopting cloud computing?
KralLord 6th Sep
@ddmattison The problem is always the same. Management focuses on the money. Even when someone does a rigorous risk analysis they skip to last last page to find out what the fix will cost, and then reject the results.
The only way to get their attention is to kick them in the head. When the flimsy infrastructure falls down and the business stops they will blame it on the IT staff.
I watched an IT manager pull two years worth on memos and reports out of his files when he got called to the CEOs office to explain the disaster. He was able to prove that the two previous CIOs had stonewalled the improvements for years. CIO offered to fire him. He pointed out that he was a shareholder and would be glad to discuss the whole mess at the next shareholders meeting.
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Why aren't organizations adopting cloud computing
JonathonDoe 14th Sep 2010
is a far more important question. It's all about security, reliability, and data availability. All these things need to be addressed before any meaningful dialog regarding the cloud can be had. The current SLA from cloud vendors indicates quite clearly that the entire industry isn't ready to back up it's claims with real action yet.

Perhaps this merits a separate post, but if you're really serious about promoting the cloud you will need to address these issues in large print up-front before most companies are even willing to talk about it.

The previous applies to out-sourced or external clouds while so-called internal cloud solutions are, of course, an entirely different matter.

Just my $0.02 USD.

Regards,
Jon
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It's always about the costs!
AccelysGroup 14th Sep 2010
Interesting findings indeed. However, I think if you asked the second level question of those responders you would find that they have experienced significant costs associated with not having the adequate resources (either too much or too little), available at the right time. Like JIT concepts in the supply chain, being able to reduce carrying costs while still providing required materials (computing power) at the right time will have a significant impact on a projects overall costs and chances for success.
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Surveys can be limiting...
roodyg Updated - 14th Sep 2010
They only allow you to pick an answer from what is proposed, and people think of them as a test. They answer a lot of the time with what they think they should say.

I'm not saying your list is wrong, just limited.

Look at the birth of server virtualization. The reasons people deployed it were very different when VMware began then they are today. And they are remarkably similar to why people will or won't deploy to cloud computing today.

Economics was important, so was security, but they didn't drive the decision early on. It surprises people to hear that a big driver for virtualization grew out of frustration with the limits of IT infrastructure and policy. It allowed a few renegade admins to take control of resources and solve problems for users without a lot of corporate overhead. They could also buy all the pieces without attracting a lot of attention until they were ready, and they could manage it all easily.

Well, that was part of it anyway. A lot of cables have passed under the floor tiles since then, but I'm seeing similarities today.
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RE: Why are organizations adopting cloud computing?
db3808 14th Sep 2010
I think the responses would change depending on your target segment. "Why are organizations adopting cloud computing?" should be paired with the question, "Why are organizations NOT adopting cloud computing?" My guess is that security and performance would be issues captured in that question.

For this survey, I find it interesting that "productivity" is not high on the list. The list referenced above seems like it's coming from mature companies (with limited innovation) focused on cost reduction and avoidance. I would think that the purchasing decision factors for innovative, growth companies would be different.
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Re: Why aren't organizations adopting cloud computing
rg10 15th Sep 2010
You are definetly right about the need for security and data accessibility in order for organizations to move to the Cloud. But I would like to enlighten you by saying that the solution can be within the architecture of the application that rather than the Cloud platform itself. Take for example, Visual WebGui (http://www.visualwebgui.com) which I have to say that I am associated with, it is a Cloud-ready application platform that allows you to build and transform existing desktop applications while maintaining both their desktop richness and responsiveness and their security due to a unique server based web architecture. And most importantly the ability to then access the application from any standard browser with no plug-ins.
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RE: Why are organiztions adopting cloud computing?
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Good day to confirm this comment I would appreciate T h e b e s t o f Z D N e t d e l i v e r e d your website very nice to everyone Yes, Oracle is the only one with shared-disk architecture, but that is there advantage. It means you can add or remove nodes and the database lives on. In a shared nothing architecture, if you lose a node, you lose the system. I'm sure Oracle appreciates EMC highlighting their advantage.I also desire to signal in your RSS feeds. Thank you as soon as once again and maintain up the great operate Awesome post! Thank you very much || thanks for nice content this is really benefit to me.

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