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Cloud: Expensive In Short Run, Pays Off in Long Run

By Lindsay Welnick
April 11, 2012 - News

IDG Enterprise found that 63 percent of organizations plan to increase their IT budget allocation for cloud computing initiatives over the next 12 months. That finding is part of the 2012 Cloud Computing survey examining cloud computing implementation, usage, investment plans and vendor requirements.

On average, organizations plan to increase cloud computing spending by 16 percent.

The survey, completed by more than 1,650 IT and security decision makers from a range of industries, highlights the growth in cloud computing investments, demonstrating the value cloud computing provides to organizations.

Even though there are higher short-term costs for implementing cloud initiatives, the majority of organization — 63 percent — agree or strongly agree that there will be long term cost savings.

Over the next five years, about one quarter — 27 percent — of organizations will perform the majority of IT operations in the cloud, despite implementation concerns.

Currently, private cloud is the most widely adopted deployment model housing the largest percent of data for an organization —24 percent. This is expected to continue to increase, and will house one-third of an organization’s data 18-months from now.

For the second year in a row, participants named concerns about security as the number one barrier to implementing cloud strategies by a significant margin — 70 percent — with the next closest barrier being concerns about access to information, at 40 percent.

To be considered a strategic partner, cloud solution providers need to be efficient in several key areas, including experience in establishing effective security policies and procedures in the cloud, 80 percent; proven post-sales support and services, 77 percent; and provide the most cost effective model, 72 percent.

Additionally, cloud solution providers need to understand that IT decision-makers are instrumental in cloud adoption decisions, with almost three-quarters — 74 percent — of organizations always/often require IT’s involvement in cloud investments.

“Cloud computing solutions enable increased IT innovation, agility and reduce long term IT costs," said Bob Melk, senior vice president, group publisher and CMO, IDG Enterprise. “Cloud computing solution providers have the opportunity to become a strategic partner as cloud investments increasingly fuel business strategy."

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