Wednesday, March 28, 2012

Enterprise Cloud Adoption Accelerates -- Primary Motivations, Global Proof Points

Wide-scale enterprise adoption of cloud-based applications continues to accelerate globally, concludes Tata Consultancy Services (TCS) in a new study based on interviews with over 600 large companies worldwide (TCS is part of global juggernaut, the Tata Group).  In the words of TCS's CEO & Managing Director:

"We have reached the inflection point in cloud computing and there is no turning back.  Cloud-based applications are already a substantial piece of large corporate IT infrastructure and the early benefits achieved are too substantial to ignore."

Tata's study reports that nearly 20% of the average US company's applications are hosted in the cloud (in Latin America, the number is nearly double that at 39%, while Asia Pacific is at 28% and Europe trailing at 12%).  Interestingly, the study concludes that, of the cloud's substantial benefits over traditional in-house IT infrastructure, cost-cutting is NOT the biggest driver of cloud application adoption.  While important, the most prevalent motivator is the need to streamline and expedite processes (e.g., standardizing software applications and business processes).  Also critical is the ability to ramp systems up and down.

Despite ever-increasing enterprise cloud adoption, the study finds that significant concerns remain -- most significantly, concerns about security risks.  Today, only 20% of US and European companies would consider putting their most mission-critical applications in public clouds (although 66% of US companies and 48% of European companies would consider putting those same core applications in private clouds).

My company, Sorenson Media, is seeing enterprise cloud adoption first-hand with our own cloud-based video transcoding solutions.  We also are directly familiar with overall concerns regarding cloud security concerns -- and have tackled them directly with our public cloud, private cloud, and hybrid cloud-based solutions ("hybrid" refers to our behind-the-firewall on premise transcoding solutions that seamlessly work with our cloud-based solutions for excess capacity/scalability).