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Another look inside cloud services spending

2/24/2016 3:08:17 PM

In the past decade, cloud computing has grown from a fledgling technology feared by a majority of organizations to one that is now fueling the IT departments of the modern era, and the departments they support, in virtually every industry. A majority of businesses have been using cloud services for at least one function since before 2010, and many have begun to dramatically expand their strategies and become more fundamentally reliant upon the flexible, agile solutions. 

This can be seen in a range of segments within the industry, including Infrastructure as a Service, Platform-as-a-Service and Software-as-a-Service, not to mention newer models such as those that relate to outsourced security and data management. To remain relevant and responsive to emerging trends, leaders will need to ensure that they are not only using the cloud for a range of processes, but also that their strategies are perfected in the near future. 

Transformations likely through 2018
International Data Corporation recently reported that the average organization is planning to expand investments into cloud computing by 44 percent between this year and 2018, as the technology enters a new era of maturity. The analysts pointed out that the number of organizations using the cloud for more than one core process or other facet of mission-critical operations doubled between the end of 2014 and February of this year. The rate was 24 percent in December 2014, and is now 58 percent. 

Interestingly, the researchers also pointed out that investments are shifting quickly, with 22 percent of corporate dollars going into outsourced cloud services today, but 32.1 percent to fall into this category by 2018. That would represent a 45.8 percent expansion in just 24 months. 

More information and systems are shifting into outsourced cloud services. More information and systems are shifting into outsourced cloud services.

"When we look at the shift in IT spend over the next 24 months, we look at it in terms of customer site and provider site, and we see a strong desire to move applications and workloads off premises and have them managed by a cloud provider," IDC Group Vice President for Applications and Cloud Business Models Robert Mahowald stated. "The study helps us identify how end-users are going about making these changes – what are the criteria for re-platforming, which specific applications are moving at what rate, and what are end-users looking for from their vendors?"

IDC found that 5 percent of the survey group think that their strategies have been adequately optimized - which shows there is still plenty of room for improvement. 

Enter managed services
It is clear that more companies are beginning to invest in cloud computing through managed service providers, and with so many not yet reaching optimal performance, leaders might want to lean on vendors that can support and guide strategies a bit more comprehensively. 

A managed service provider will help to alleviate some of the strain and simplify some of the complexities associated with migrating to cloud computing environments, as well as the long-term maintenance and optimization needs that will come down the road. 


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