Mature cloud users are driven by business growth, not cost reduction: report

Posted on May 15 2015 - 12:11pm by Upgrade Staff

Cloud is increasingly becoming the dominant model of IT service delivery. However, business growth rather than cost reduction is the focus of organizations with a mature approach to cloud computing, a new IBM report written by The Economist Intelligence Unit reveals. They are also more likely to achieve those benefits as a result of their use of cloud.

The global survey reveals that cloud is poised to become the dominant model for IT service delivery. Two thirds of respondents predict that 60% or more of the technology services will be delivered via the cloud within three years.

High cloud-maturity organizations are more likely to view “boosting customer demand” and “expanding sales channels” as drivers to cloud adoption, the report shows.

They are also more likely to have achieved revenue growth as a result of their use of cloud. Low cloud-maturity organizations are typically more focused on cost reduction and efficiency.

They are also more likely to say they have the data governance measures required by cloud in place. Nevertheless, privacy, compliance and security will continue to be the chief barriers to cloud adoption in the next three years, even among high cloud-maturity organizations, the report reveals.

“This research reveals that there is still work to be done by IT departments in educating their peers in other divisions about the risks and realities of cloud,” said Pete Swabey, senior editor at The Economist Intelligence Unit.

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