Analyzing the IDG Enterprise Cloud

Computing Study: Choosing the right Cloud

Model

Which cloud model is right for you? This is a very crucial element of your cloud strategy as it

helps you in calculating the budget required and the utility the cloud service can provide. In our

previous blog, we have discussed the organizational impacts from the cloud and how the roles

and responsibilities of IT staff are impacted when transitioning to a cloud environment within

your enterprise. In this blog we will see how organizations are adopting cloud services and how

to choose the right cloud service model.

According to the IDG survey, it is interesting to note that among the enterprises that have moved

to the cloud, 24% of the enterprises have upgraded their existing cloud services and 28% plan to

do so in the next 12 months. As far as the adoption of cloud services is concerned, IT

environments are moving quickly to the cloud. For the query about what percentage of

organization's total IT environment presently resides in the cloud, 19% of them reside in the

private cloud, 15% in the public cloud and only 5% prefer the hybrid cloud and 61% of the

enterprises have no cloud based applications. However, the number is set to increase over the

next 18 months with the percentage of non-cloud enterprises dropping to 47% from 61% this

year. This showcases the immense popularity cloud is gaining over the years. It also indicates the

potential markets up for grabs.

Cloud spending outside the IT organization is on the rise and is expected to rise further over the

next few years. Currently 23% of the cloud spending originates outside the organization is

projected to reach 28% in three years from now. And the cloud purchase decisions are generally

taken by the top IT executive or the CIOs in majority of the companies irrespective of the size of

the organization. There are further other non - IT areas that are either funding or planning to fund

the cloud initiatives in the organizations. As per the survey, marketing, sales and human

resources departments are funding the cloud initiatives apart from the IT departments in the

organizations.

However, there are many instances where cloud-related projects that originally initiated outside

the IT organization come back to IT ownership. About 45% of such projects came to IT

ownership as per IDG survey. The major reasons that were expressed as being the causes for

projecting returning to IT ownership include security concerns, lack of appropriate talent, need

for standardization among others. Nearly 60% of the respondents replied that lack of appropriate

skill and security concerns were the main reasons behind the projects that external projects

returned to IT.

In the last blog in the series we will discuss the challenges, barriers associated with cloud

adoption.

DoubleHorn is a leading cloud based Managed Services Provider, founded in January 2005 and

based in Austin, TX. We specialize in delivering Cloud Services, Managed Communications

and Consulting to the Enterprise, Government and SME (Small and Medium Enterprise)

sectors. If you are new to the cloud and not sure how to get started, contact us for a

complimentary initial assessment at solutions@doublehorn.com or (855) 618.6423