Industry

Gartner Survey: Cost, innovation and agility drive Cloud adoption

A recent survey by Gartner, Inc. reveals that international buyers of cloud applications point to cost, innovation and agility as reasons for transitioning to the technology. In May and June 2014, Gartner carried out a survey across 10 countries in four regions to examine the business related adoption and deployment of cloud services across SaaS, infrastructure as a service (IaaS) and platform as a service (PaaS). The countries surveyed include the U.S., Brazil, Mexico, the U.K., Germany, France, China, India, South Korea and Australia.

 Joanne Correia, Vice President of Research at Gartner, said, “The most commonly cited reasons the survey found for deploying SaaS were for development and testing production/mission-critical workloads; and we’ve seen a real transition from use cases in previous surveys where early SaaS adoption focused on smaller pilot projects. Today, the projects are mission-critical and production grade. This is an affirmation that more businesses are comfortable with cloud deployments beyond the front office running sales force automation (SFA) and email.” 

Of the survey respondents, 44 percent said that cost cutting continues to be the main reason for investment. But, when organized by role, the data from the survey shows that cost reduction was rated highest by those in junior roles such as IT staff and IT managers. CXOs and IT directors perceived cost reduction to be a key benefit but were more intrigued by benefits such as the operational agility, modernity, innovation and business advantage that come with cloud technology.  

It was concluded that CIOs are primarily concerned with establishing a cutting edge IT environment that would enhance business advantages and operational agility, whereas non-IT business leaders are focused on cost cutting and might not fully appreciate the other benefits of cloud tech.  

Regardless what one’s motive may be for adopting cloud technology, Gartner warns that public cloud is not always the most appropriate model for business purposes. The decision to deploy SaaS-based applications within a company depends on many factors such as need, geography, usage scenario, IT architecture and business agility. Because of this, only a few enterprises will completely migrate to SaaS and will operate with with a mix of SaaS and traditional on-premises models, while focusing on integration and migration between the two.  

Gartner’s survey also revealed that leading concerns for respondents, who do not consider public cloud models, include security, privacy and government snooping, especially among those respondents outside the U.S. While protection methods are constantly upgraded and public cloud services are positioned as secure, privacy and security issues continue to worry many. 

Laurie Wurster, research director at Gartner, said, “Data loss, data breaches, unsecure application programming interfaces (APIs) and shared technology in a multitenant environment are just a few of the concerns expressed by respondents tackling the option of using public cloud. In addition, recent concerns of government snooping in the name of anti-terrorism and general privacy issues contribute to the lack of public cloud adoption.”  

Despite the security and privacy issues, respondents are still investing in public cloud for SaaS deployment of software applications, and primary motives include the fact that “hands off” IT enables in-house staff to handle other responsibilities since the SaaS provider is responsible for ongoing support. Quick deployment and access to innovation are equally important since SaaS vendors can release applications when you are ready and reduce initial expenditures with pay-as-you-go pricing models.

Fabrizio Biscotti, research director at Gartner, said, “Although fewer respondents indicated investment in public cloud for platform as a service, business process as a service (BPaaS) and infrastructure as a service, the results are still significant in response to these emerging technologies. Cloud-hosted applications continue to grow as alternatives to internally managed systems; they will generate increasing demand for SaaS extension and integration, both functions of PaaS offerings. Although SaaS and IaaS are fairly consolidated, PaaS is still open for expansion, with both SaaS and IaaS providers looking at PaaS as a natural extension for growth. Of all the cloud technological aspects for which respondents indicated investments, BPaaS, IaaS and SaaS are the most mature and established from a cloud landscape perspective, while PaaS is the least evolved.”

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Tracy Venkatesh

Tracy Venkatesh

Tracy Venkatesh has spent twenty years working and interacting with a socioeconomically diverse population in both the private and public sectors, and has held positions in multiple verticals including content development, healthcare, customer relations management, defense and law enforcement.

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