As an analyst, everyone and his brother has sent me their research claiming that large and small organizations are embracing and investing in cloud computing.
Nope. According to ESG’s 2010 IT Spending Data, only 12% of mid-sized (i.e., less than 1,000 employees) and enterprise (i.e., more than 1,000 employees) organizations claim that “increased spending on cloud computing” is one of their top ten initiatives for 2010. Obviously, most firms have other priorities.
Okay, 12% isn’t a large population but common wisdom (and industry hype) would suggest that these cloud computing pioneers must be on the cutting edge of IT.
Wrong again. Actually, those investing in cloud computing fit a completely different model. It turns out that cloud adoption has a lot to do with:
Forget about burstable processing or massive Hadoop-based apps — most companies look at cloud computing (and its many definitions) to cut costs or hand off difficult IT tasks to an expert. As such, cloud computing is a perfect fit for industries like State/Local government, manufacturing, and transportation that are cutting IT spending.
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Tags: Cloud Computing
How are you measuring of defining effectiveness or improvement? The key driver for cloud computing that I’mseeing is coming from Application & Development teams, being pushed hard by the business, wanting to take advantage of rapid provisioning capabilities offered in the cloud. This is due to the slow (either real or perceived) provisioning of IT services within the ‘traditional’ Enterprise datacenter space. Operations and Security are now having to play catch up … ITIL in the datacenter is one thing, ITIL type service management in the cloud is an entirely new challenge.
The reality is that developers can, will and are, with simple and easy ad hoc credit card spend, launching development environments with any number of cloud vendors. It would be interesting to see how the 12% breaks down betweem dev and ops functions and at what level the respondents are palce. In many organisations Ops (even the senior guys) have poor visibility of what is happening in Dev and may soon find increasing Cloud demand being pushed their way.
David:
Thanks for your comment. ESG did not assess organizations’ IT effectiveness or improvement. Rather we asked survey respondents to assess their organizations’ IT skills and procedures. We then used this data to correlate their adoption of cloud computing.
[...] Certain industries are adopting cloud technologies faster than others. The top three industries adopting cloud computing solutions are technology (with 53 percent), financial services (40 percent) and legal (37 percent). [...]
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