No separate budgets for cloud computing!

by CXOtoday News Desk    Oct 09, 2013

cloud challenges

While the cloud computing market is growing at a phenomenal pace, IT decision makers or CIOs have not yet started treating ‘cloud’ as a separate investment. According to a cloud computing study conducted by TheInfoPro, 60% organizations still view cloud computing as a natural evolution of IT service delivery and do not allocate separate budgets for cloud computing projects.

Among the companies that have separate budgets for cloud computing, 69% expect their spending to increase in both 2013 and 2014 compared with the prior year, says the report. In just the past six months, IaaS and SaaS activity has doubled to between 30% and 33% of the projects mentioned. However, private cloud projects still dominate cloud-related activity cited by 35% of respondents.

The Roadblocks

Market experts say that the cloud market is still at a nascent stage and opportunities are only going to increase in the coming months. However, an increase in non-IT roadblocks is slowing the pace of project completion.

TheInfoPro cloud study shows that despite the increased cloud computing activity, 83% of respondents are facing significant roadblocks to deploying their cloud computing initiatives, a 9% increase since the end of 2012. IT roadblocks have declined to 15% while non-IT roadblocks have increased to 68%. These are mostly related to people, processes, politics and other organizational issues.

“Despite the associated growth opportunity, there are major roadblocks… within the domain of people, process, policy and organizational issues, which are more complex for vendors to address,” says Peter ffoulkes, TheInfoPro’s Research Director for Cloud Computing.

Although security still remains the biggest concern for companies implementing cloud, the selection of vendors is usually done based on their ability to address regulatory and compliance requirements.

Opportunities ahead

At the cloud technology level, cloud platform/orchestration stacks lead TheInfoPro Heat Index, followed by cloud performance management/monitoring and virtual private cloud-based IaaS as the top greenfield opportunities offering the biggest upside opportunity for vendors in the next two years.

Apart from established vendors Microsoft, VMware and, there is a very long list of vendors large and small coupled with open source and other market initiatives that are getting the attention of IT strategists. “As organizations are completing their transition to a virtualized datacenter infrastructure, their focus is switching rapidly to cloud computing projects,” says Peter ffoulkes.