Growth in Enterprise Cloud Adoption Creating Significant Market Opportunities

July 18, 2016

By Susan J. Campbell - Enterprise Cloud Contributing Editor

The promises of the enterprise cloud continue to prove valuable. CIOs continue to lead their organizations to a cloud-based strategy and as a result, cloud adoption is soaring. According to Gartner (News - Alert), the public cloud services market is expected to grow 16.5 percent to hit $204 billion in 2016. This growth demonstrates there is a shift away from legacy IT services to focus more on investments in cloud-based offerings.

A recent CIO piece examined this trend, pointing to key drivers of enterprise cloud adoption. In a recent survey, four in 10 IT leaders reported a use of cloud technology as a way to improve responsiveness and resiliency. Another 33 percent report that they use the cloud as a way to save money. A similar proportion invest in cloud offerings as a way to accelerate product innovation.

The demand for enterprise cloud adoption is rapidly growing as the CIO is under increasing pressure from the CFO to optimize legacy IT. At the same time, IT needs to support the rapid pace of the business, implementing new capabilities at the right cost to produce the desired benefits. To that end, Software as a Service is leading the pace with 30 percent of IT leaders planning significant investments in this space.

Just 25 percent plan to make similar investments in Infrastructure as a Service (IaaS) and just 20 percent have their eyes on Platform as a Service (PaaS) solutions. There’s significant value in shifting one-off applications to SaaS (News - Alert) platforms. With so much value being delivered to the organization and to the bottom line, robust growth is expected across all three in the next three years. The biggest acceleration is expected to come from PaaS solutions where investments are expected to hit 37 percent.

Not long ago, CIOs were still contemplating the opportunities of moving to the cloud. Many were fearful of loss of control and perceived sub-standard approaches to security. Today, those fears have proven to be unfounded and organizations are realizing the cloud has too much to offer in terms of productivity and efficiency gains to ignore the investment any longer. Now, companies can compete on a much larger scale as the cloud brings new capabilities to the forefront that were once out of reach.

Today, the enterprise cloud is bringing significantly more benefit to the organization, driving opportunities for key players in the SaaS, IaaS and PaaS markets. Those demonstrating they have a firm grasp on what needs the enterprise must meet will enjoy the lion’s share of the benefits.

Edited by Maurice Nagle