The Truth About Cloud Computing. Are Enterprises REALLY Embracing it?

IT decision makers are planning to migrate nine in ten business apps to the cloud. In fact, 60% believe this migration will happen within the next two years, according to a recent study by NTT Com (Wireside client.) The ICT solutions leader recently surveyed nearly 1,600 IT decision makers from the US and EU to get their insights about the future of cloud computing. It sounds like global enterprises have embraced the cloud, right? Well, according to NTT Com’s Cloud Reality Check 2015 study, the answer is both yes and no. cloudpic

Cloud will account for over a quarter of corporate ICT budgets by 2018 and the vast majority of respondents expect the number of individual cloud platforms in use in their organizations to grow over the next three years, according to the study. However, though most agree cloud is good for business and many IT decision makers are planning to move more and more important apps to the cloud, respondents view the processes of migration and management once in the cloud as wrought with complexities and challenges. For example:

  • One-third say the cloud isn’t yet living up to its potential (38%)
  • 4 in ten find cloud vendors confusing and challenging
  • 4 in ten claim migrating complex apps to cloud is too much trouble
  • Nearly 50% feel they have less control over apps once in the cloud

Overall, it seems bi-modal IT is a challenge for data center AND cloud and ICT decision-makers are spending much more time managing performance than developing functionality.

So what DOES the future of cloud computing look like? The reality is that as much as businesses care about scalability and cost efficiency, two areas where more than 50% of IT decision makers credit cloud-based applications, the primary concerns of enterprise-class customers concern security, compliance and corporate data governance. For example, 10% of apps will NEVER migrate to cloud.

According to Len Padilla, VP product strategy at NTT Com, though ICT decision-makers see the cloud as a compelling enabling technology, companies need a new approach to ICT transformation through cloud computing, given the variety of platforms available and the complexity of the applications they support. He believes “there needs to be a far smoother migration path from the data center to the cloud,” and that “a different kind of planning approach is required for companies to achieve the large-scale digital transformations business executives are demanding.”

So what’s the solution? According to Padilla, “focusing on continuous improvement and incremental steps is a far more effective strategy than ambitious plans.” A hybrid cloud approach offers the best of both worlds, allowing companies to capitalize on the cost savings associated with a traditional cloud environment while experiencing the improved performance, reliability and security only available with dedicated computing resources.  To read more about the Cloud Reality Check study and view an infographic, click here.

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