The State of The Cloud

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Cloud computing is big business. Market research firm Gartner states that $111 billion worth of IT spending will shift to the Cloud in 2016, and the number will almost double to $216 billion by 2020.

However, a recent study of 500 business and IT executives (customers or end users) in July of this year has found that secondary adoption of Cloud-based services is slowing down. Published by CompTIA, the study – Trends in Cloud Computing – examines the state of Cloud adoption among end users and explores the opportunities for channel providers.

First stage completed

When CompTIA completed its previous research into the Cloud market, there was a sense that the initial stage of Cloud adoption was complete. The vast majority of businesses claimed to be using Cloud computing in one form or another, and discussions around Cloud were turning towards architectural transformation rather than initial migrations.

CompTIA’s study found that both end users and channel firms had moved past uncertainty around cloud offerings and were embracing the concept as a primary model for building infrastructure and executing IT operations.

This ties in with our own findings in our recently published white paper – The Challenge of the Cloud – which concluded that MSPs were often involved in helping businesses with infrastructure, data warehousing, security, business continuity as well as core business applications.

According to CompTIA, the vast majority of companies have been using Cloud-based solutions now for between one and five years. Half the sample has been using the Cloud for between one and three years, 21% have been using it for between three and five years and just 6% of respondents say they have been using the Cloud for more than five years. This leaves 23% of surveyed companies deploying Cloud-based solutions for less than a year.

One of the reasons given for the potential discrepancies in Cloud usage is confusion, not only over what the Cloud actually is, but also over the terminology used. This is also something we found in our white paper.

Private Cloud

CompTIA highlight the term “private Cloud” as one which seems to confuse people. Market research company Gartner issued a set of guidelines back in 2012 looking at what constituted a private Cloud which still holds true today. It’s worth taking a look at what they said.

Aside from debates over the interpretation of private cloud, there is healthy adoption of the different deployment models and service models. Over time, the segment utilising a hybrid Cloud model is expected to grow as businesses move towards Software as a Service (SaaS) applications rather than packaged software.

Gartner is forecasting Infrastructure as a Service (IaaS) to take over as the highest growing sector alongside Platform as a Service (PaaS) solutions. By 2020 Gartner is also predicting that a corporate “no-Cloud” policy will be as rare as a “no internet” policy is today.

Ultimately, the thing which will drive the continued adoption of Cloud-based solutions is the real benefits it brings to a business. MSPs can help take the headache out of transferring to Cloud-based solutions because this is what they have been doing long before the advent of the internet – offering managed solutions to businesses so they don’t have to employ expensive consultants or train their staff in highly specialised skills for perhaps only one or two regular tasks.

This is part one of a three-part series of Transmentum blogs in the run up to the end of 2016 looking at The Challenges of the Cloud. The CompTIA survey can be found on their website.

The Challenge of the Cloud

Find out more about the challenges facing MSPs when it comes to the Cloud

The Road to Recurring Revenue

Learn the Key to Rapid, Profitable Growth with our extensive Knowledge Portal

The Challenge of the Cloud White Paper

Get our free to access white paper here.

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About Transmentum
Transmentum are a specialist business working with growing IT, technology and software companies in the managed services industry.. With a proven track record of helping businesses to grow business revenues, profits, skills, and people, Transmentum add value to those who are building a recurring revenue model – including those who aspire to move into the Cloud or develop their own managed service propositions.

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