- Enterprises surveyed are predicting they will invest an average of $2.87M in cloud computing technologies in 2016.
- 90% of enterprises are relying on APIs in their cloud integration plans for 2016.
- 25% of total IT budgets will be allocated to cloud computing in 2016.
- Security continues to be the biggest challenge enterprises face in adopting cloud computing.
These and many other insights are from 2015 IDG Enterprise Cloud Computing Study, published earlier this week. You can view and download the slides here. The goals of this year’s study are to measure cloud computing trends among technology decision-makers including usage and plans across various cloud service and deployment models, investments, business drivers and impact on business strategies and plans.
IDG randomly selected 962 respondents from its audience base of publications including CIO, Computerworld, CSO, InfoWorld, ITworld and Network World, surveying them with e-mail invitation-based surveys and randomized website visitor selection. For additional details on the methodology, please see pages 1 & 2 of the study.
Key take-aways from the study include:
- 48% of enterprises are moving to the cloud to replace on-premise, legacy technology today. 46% are adopting cloud applications and platforms due to their speed of deployment, and 43% are focusing on lower total cost of ownership (TCO). 50% of mid market organizations are adopting the cloud to gain business continuity. The following graphic provides a comparison of enterprise and midmarket organizations’ business goals and objectives driving investments for cloud initiatives.
- 72% of enterprises have at least one application running in the cloud, growing from 57% in 2012. Enterprise adoption of cloud applications has grown at a compound annual growth rate (CAGR) of 6.01% over the last four years based on IDG’s survey results. Adoption plans by category from the study are shown below:
- 90% of enterprises are relying on APIs in their cloud integration plans for 2016. Integrating with databases, messaging systems, portals or storage components (58%) is projected to be the most common area of API adoption in enterprises during the next twelve months. Connection of the application-layer with the cloud and underlying infrastructure (48%) is the second most common area enterprises are relying on APIs for as part of their cloud strategy over the next 12 months.
- Enterprises will invest an average of $2.87M in cloud services in 2016. Midmarket organizations will invest an average $578K in the next twelve months. Across all respondent organizations, average spending on cloud-based services will average $1.56M. The following is a distribution of budget amounts over the next twelve months for enterprises and midmarket organizations.
- Chief Information Officers (CIOs) have the majority of influence on the collaborative cloud purchasing process (73%), followed by Chief Technical Officers (CTOs) (55%), and Chief Security Officers (CSOs) (48%). IDG found that CEOs have 41% of the influence on the cloud purchasing process. Contrary to comparable surveys, IDG found that line of business management had just 13% significant influence.
- 53% of enterprises predict that cloud adoption will drive the need for greater training, and 52% predict IT will increase collaboration with other business units or departments due to cloud investments. 47% of enterprises are going to seek new IT talent and skills in the next 12 months. These findings suggest the need for more collaboration and tighter synchronization between IT and business units is making training, internal development, and recruitment of cloud expertise a high priority. Unfortunately, 26% of enterprises are planning to reduce headcount, which is a clear signal to IT professionals to get as many new cloud skills as quickly they can to stay marketable.
- Concerns regarding the security of cloud computing (64%), cloud solutions’ compatibility with enterprise and industry standards (42%), and integration (41%) are the top three challenges enterprises face in adopting cloud computing. Small and Medium Businesses (SMBs) are even more concerned with security than enterprises (64% versus 69%) and integration (41% versus 45%). The following table provides a comparison of the challenges enterprises and SMBs face when in adopting cloud computing.
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