Everyone's Doing Cloud, But Few Doing It Right

by CXOtoday News Desk    Aug 27, 2015

cloud confusion

Cloud has moved into its second wave of adoption, with 53 percent of CIOs expecting it to drive increased revenue for businesses over the next two years. However, problem remains as 99% don’t have an optimal strategy for adoption. This is one of the main focus of a recent IDC study that surveyed 3,643 IT decision makers across 17 countries for the results. The respondents work in companies that are currently implementing private, public and hybrid clouds in their IT. 

The Cisco-sponsored study titled “Don’t Get Left Behind: The Business of Achieving Greater Cloud Adoption,” makes it clear that the enterprise is moving into what the the study calls the “second wave” of cloud adoption where organizations are adopting cloud as a means of driving business outcomes. However, not everyone had clear strategies on how to get there.

According to the study, 32 percent do not have a discernable cloud adoption strategy for the other 32 percent its an ad hoc strategy, 11 percent are opportunistic, while 16 percent going for repeatable adoption strategy and 8 percent following a managed strategy. Only 1 percent of organizations worldwide has a truly optimized cloud strategy.

Cloud adoption

There are three key performance indicators (KPIs) that are driving this cloud adoption. The first KPI is efficiency. Of the IDC study respondents, 77 percent reported an IT cost reduction and 72 percent said that the cloud had improved their ability to meet service level agreements (SLAs) with clients.

Speed was the next KPI with 99 percent of respondents reporting an improvement in the time it took to provision IT services. The final major KPI was disruption. CIOs who were surveyed experienced 10.4 percent revenue growth and 200 percent growth of strategic IT budget allocation attributable to the cloud.

Among the respondents, though, there were some interesting trends in how the cloud was adopted. When asked what type of cloud they were currently using or planning to implement, 44 percent said private cloud, 38 percent said public cloud, and 64 percent were looking at hybrid cloud.

By industry, manufacturing has the largest percentage of companies in one of the top three adoption categories at 33 percent, followed by IT (30 percent), finance (29 percent), and healthcare (28 percent). The lowest adoption levels by industry were found to be government/education and professional services (at 22 percent each) and retail/wholesale (at 20 percent). By industry, professional services, technology, and transportation, communications, and utilities expected the greatest impact on key performance indicators (KPIs) across the board.