Research Indicates that Cloud Increases Short Term Costs for Long Term Gains

IDG Enterprise’s Survey Details Enterprise Cloud Strategy and Vendor Opportunities

Framingham, Mass. – April 2, 2012 – IDG Enterprise—the media company comprising CFOworld, CIO, CIO Executive Council, Computerworld, CSO, DEMO, InfoWorld, ITworld and Network World—releases the results from the 2012 Cloud Computing survey examining cloud computing implementation, usage, investment plans and vendor requirements.

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. Respondents state that 34% of their current IT budget is allocated to cloud computing solutions and more than half (63%) expect to increase spending in the next 12 months. On average, organizations will increase cloud computing spending by 16%.

Even though there are higher short term costs for implementing cloud initiatives, the majority of organization (63%) agree/strongly agree that there will be long term cost savings. Over the next five years, one quarter (27%) 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%). This is expected to continue to increase, and will house one-third (33%) 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%), with the next closest barrier being concerns about access to information at 40%.

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%), proven post-sales support and services (77%) and provide the most cost effective model (72%). Additionally, cloud solution providers need to understand that IT decision-makers are instrumental in cloud adoption decisions, with three-quarters (74%) of organizations always/often require IT’s involvement in cloud investments.

Key findings include:

  • Sixty-three percent of organizations plan to increase their IT budget allocation for cloud computing initiatives over the next 12 months. On average organizations plan to increase cloud computing spending by 16%.
  • Private cloud deployments are currently where the majority of information is stored in the cloud (24%), and the trend will continue to dominate 18 months from now (33%). Additionally, information is stored in other cloud deployment models including public cloud (10% currently, and 16% 18 months from now), community cloud (9% and 8% respectively) and hybrid cloud (8% and 14% respectively).
  • In addition to investing in cloud computing solutions, 68% of organizations strongly agree/agree that the IT organization had to grow skillsets to keep up with cloud developments.
  • Two-thirds of organizations (66%) believe that cloud computing is a very/somewhat important enabler of business innovation.
  • By a significant margin, the number one barrier to implementing cloud strategies is security (70%), followed by concerns about accessing information (40%) and concerns about information governance (37%).

“Cloud computing solutions enable increased IT innovation, agility and reduce long term IT costs,” said Bob Melk, SVP, group publisher & CMO, IDG Enterprise. “Cloud computing solution providers have the opportunity to become a strategic partner as cloud investments increasingly fuel business strategy. To facilitate a conversation between IT decision-makers and solution providers and advance the cloud agenda, IDG Enterprise and IDC established The Cloud Leadership Forum, June 12-14, 2012 in Santa Clara, CA. For the 3rd consecutive year, conference attendees will discuss the complexities of organizational and infrastructural changes that are required to truly realize the benefits of cloud.”

To receive the complete study results contact Bob Melk at bmelk@idgenterprise.com.

To learn more about Cloud computing strategies and engage with IT decision-makers, thought leaders and solution providers, attend the 2012 IDC/IDG Enterprise Cloud Leadership Forum,  June 12-14, 2012 at the Hyatt Regency in Santa Clara, California.

About IDG Enterprise
IDG Enterprise, an International Data Group (IDG) company, brings together the leading editorial brands (CFOworld, CIO, Computerworld, CSO, DEMO, InfoWorld, ITworld and Network World) to serve the information needs of our technology and security-focused audiences.  As the premier hi-tech B2B media company, we serve our reader and advertiser audiences by delivering award-winning content, community, conversation, and conversion solutions across our entire portfolio of award-winning websites, events, magazines, products and services. In addition, the CIO Executive Council is a peer advisory service that delivers on the business, technology, and leadership needs for the world’s elite CIOs and their respective staffs.
Company information is available at www.idgenterprise.com.


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Contact:
Lynn Holmlund
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IDG Enterprise
lholmlund@idgenterprise.com
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