Exploring the Key Drivers behind Enterprise Cloud Adoption
Over the years, cloud migration has moved beyond development and testing, and it is currently moving to true production. From here on, we are likely to see the accelerating adoption of cloud computing. Enterprises all over the word have unique requirements and challenges when it comes to cloud computing. They have an ever increasing need for redundant, reliable and secure access to the cloud. Despite the fact that security concerns still linger in the minds of several IT pros; the rapid adoption of enterprise-class cloud computing suggests that the concerns are being met.
According to the RightScale 2014 state of the cloud survey, 94% of the organizations surveyed were experimenting or running applications with infrastructure-as-a-service; and 74% of enterprises have a hybrid cloud strategy and more than half of those are already using both private and public cloud. It’s no secret that cloud apps offer scads of potential benefits compared to on premise apps. From enabling compliance to simplifying maintenance to lowering costs, there are several reasons to move to the cloud. However, which of these reasons are the key drivers for business executives and CIOs who are adopting the cloud?
A recent survey conducted by Harvard Business Review Analytic services revealed that business agility has become the primary benefit and major driver behind cloud adoption. The study, which was conducted by surveying 527 HBR readers from mid-size and large enterprises, concluded that organizations moving aggressively to adopt the cloud are winning competitive advantage by reducing complexity and increasing business agility. 32% of the respondents said that business agility was their principal reason for pursuing the cloud; this driver ranked higher that lowered costs, innovation, and scalability.
Unlike cost, measuring the clouds impact on business agility is not straight forward; this is because business agility can be mean several different things. Wikipedia defines business agility as the ability of a business system to rapidly adapt to changes in the business environment while searchcio defines it as a concept whereby organizations seek to approach their resources and operations in a responsive, flexible manner.
The Verizon sponsored HBR study does not directly define business agility; however, it offers meaningful clues to the benefits agility provides: like increased employee productivity, reduced complexity, lowered costs, and the ability to enter new markets. According to McKinsey & Company, a leading global management consulting firm, the advantages of business agility include greater and more lasting cost reduction, more effective management of reputation threats and risks, and greater and more lasting cost reduction.
According to a study released by Host Analytics, 58% of CIOs surveyed cited compliance as the main driver behind cloud adoption. The research was conducted by Dimensional research and surveyed more than 300 CIOs from Asia, North America, and Europe on trends driving adoption of cloud apps.
Availing resources to meet mobility needs definitely introduces new risks to enterprises and significantly increases compliance requirements. Compliance helps enterprises address security compliance with regulation and industry standards, from government regulations like Sarbanes-Oxley and the European Union Data Protection Act, to industry regulations like HIPAA for health data, PCI DSS for payment cards, and Good Anything Practice (GxP).
Despite the fact that compliance can be a driving force for adopting an enterprise-class cloud, it should also be a major consideration when choosing cloud service providers. Choosing a vendor that fully understands the various regulations applicable to your business and is capable of addressing your security and governance needs will quickly prove to be a wise relationship.
The principal focus of cloud computing –Ubiquitous, self-configurable, cost effective, elastic and on-demand computing- greatly influences today’s mobile environments. As remote working increases in popularity, cloud computing is allowing employees to work at any place, at any time, and on any device. This rapid proliferation and maturity of smart mobile devices makes mobility a key driver behind the migration to the cloud.
As the deployment of tablets, smartphones and other mobile devices within the private sector continues, more cloud computing solutions will be launched alongside them, enabling enterprises of all sizes to be more efficient. By eliminating the application, data, and processing from the mobile computer, organization will eventually reduce it takes to deploy mobile solutions while increasing employee productivity and greatly lowering operational costs.
Other key drivers behind the adoption of enterprise-class cloud computing are reduced operational costs and improved performance and latency to existing systems. The above drivers will impact each company at varying levels. The migration to the cloud can be massively beneficial if properly considered, planned and implemented.
Author: Gabriel Lando
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