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Cloud Survey Data Shows Enterprises Still Adjusting to Cloud

Cloud computing

Cloud adoption is certainly on the radar for upper midmarket/enterprise companies in the latest Techaisle research (U.S. Enterprise Cloud survey), but it’s clear the that sands beneath cloud adoption continue to shift and in some instances, maybe surprise.

The recent report surveyed IT decision makers at 750 U.S. enterprises by employee size: 1,000-2,499, 2,500-4,999 and 5,000 or more. Here are some report findings.

Techaisle's Anurag AgrawalFor starters, only 18 percent of respondent organizations have mature cloud adoption and are optimizing usage, while another 36 percent reported taking a cautious approach to cloud. The smaller companies tend to reach cloud maturity sooner than larger companies that seem to take a more ad hoc approach to cloud.

Anurag Agrawal, Techaisle CEO and analyst, ties cloud maturity to the function of understanding cloud benefits. So, for example, firms that are effectively using cloud note agility and improved productivity – especially within IT – as key cloud benefits. Those enterprises less committed to cloud view it as a cost/CapEx strategy with additional benefits of enabling mobility and capabilities that are outside of IT’s deliver scope, or far down on the priority queue.

Large U.S. firms hedge their bets when it comes to public cloud, with the data showing that enterprises use an average of 2.6 of the four prominent services – AWS, Azure, IBM SoftLayer & Google Cloud. Sixty-one percent of respondents report wanting seamless integration of cloud with their on-premises systems, while another 20 percent use all three types of cloud deployment – private, public and hybrid – but down the road, more expect to get entrenched in a multi-cloud environment.{ad}

The top four drivers for public cloud adoption by U.S. enterprise respondents are: agility, flexibility and elasticity, delivered via an on-demand investment model; multi-tenancy, which makes cloud a cost-effective option for enterprises; better and faster access to data and information, which results from the built-in backup, DR and IT management capabilities delivered by public cloud providers; and, pay-per-use, which reduces upfront capital expenditure requirements.

Infrastructure, office applications, business services and vertical-industry solutions are the four workload groups that are transitioning to public cloud, according to the survey. Additionally, enterprises in industry segments such as financial services, automotive, e-commerce and manufacturing are on the forefront of making the case for public cloud.

At the same time, companies report public cloud-adoption challenges such as: skills/talent shortages, especially when it comes to managing across multiple cloud-based delivery platforms; integration with existing systems; and data security, maintaining integrity of data and processes, and regulatory compliance.

Security concerns, such as data sovereignty and data privacy, slow the acceleration of cloud for 60 percent of respondents, while for 65 percent, security and regulatory compliance are the biggest challenges in developing strategies for cloud. The three essential security issues are security framework visibility, data privacy and prevention, and detection and reaction.

Somewhat surprising is that only a small minority of users believe that cloud providers don’t understand the specific security needs of their businesses and that cloud usage creates a higher risk of data breach. Also, a majority of respondents report having formal security protocols in place, that they’re better prepared than other firms when it comes to IT security and their IT security budget is sufficient to address threats. And, finally, almost 70 percent of survey respondents are considering purchasing cyber insurance to protect their businesses.


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