News Releases

Cloud Computing Penetration Into Enterprise IT Gaining Momentum

Posted by Annette Baio on May 17, 2011 1:50:00 PM

Mountain View, CA and Tampa, FL, May 17, 2011 – The US Cloud computing market is poised for strong growth, as an increasing percentage of enterprise information technology is now becoming Cloud-based. 

According to new research from WaveLength Market Analytics and Winn Technology Group, Five Key Themes in Enterprise Cloud Computing Migration, 58% of medium and large enterprises are already using or planning to use the Cloud. About 41% of that market is comprised of Cloud Pioneers, those enterprises that actively use or pilot some type of Cloud solution. Another 17%, called Cloud Planners, are planning to implement a Cloud solution. 
 
Both Cloud Pioneers and Planners implement a mix of Cloud solutions. Next to Software–as–a–Service, the most common are Platform–as–a–Service, with 54.8%, hosted private Cloud with 32%, and Infrastructure–as–a–Service with nearly 26%. In the next two years, enterprise IT buyers expect to use more private, public, and hybrid Clouds. 
 
“Penetration of Cloud computing into IT is only at the beginning of a very rapid, high-growth phase,” said Natalie Robb, of WaveLength Market Analytics. “Cloud Pioneers and Planners expect Cloud’s percentage of IT to grow from around 10% in 2012 to 30% by 2015. Understanding what sets Cloud Pioneers and Planners apart from Cloud Stragglers is essential for technology and telecom providers to improve solutions, nurture the right prospects, and reach enterprise buyers.” 
 
Other key findings from WaveLength/Winn’s report include the following: 
  • Only 34% of Pioneers say their Cloud deployment was faster than client–server, 29% met their ROI goals, but almost 50% were satisfied with their Cloud solutions pointing to a bullish future for Cloud. 
  • Pioneers and Planners will increasingly use Cloud for mission–critical applications and functions such as supply chain, Tier–1 storage, and unified communications in the next 24 months. 
  • Concerns that limit Cloud adoption vary significantly by segment: Cloud Pioneers worry most about network delays; Planners worry about solutions management, such as remediation tools, integration with existing IT resources, reporting and management tools. 
  • About 40% of Cloud Pioneers upgrade perimeter security, implement encryption, and migrate to SANs prior to Cloud deployment, while more than 25% increase WAN bandwidth.
  • While Planners involve more technology partners than Pioneers in their Cloud solutions; software vendors, consultants, and systems integrators are most frequently in the mix. 29% of the Pioneers say software vendors are most important, while 48% of Planners say systems integrators are most important. Telco service providers were least important to both groups. 
Five Key Themes in Enterprise Cloud Computing Migration discusses the changing Cloud market from a broad perspective. It examines penetration of different service deployment models, drivers that encourage adoption, concerns that limit it, enterprise preparation for Cloud deployment, and the role of the channel in enterprise IT Cloud computing purchases. 
 
Five Key Themes in Enterprise Cloud Computing Migration is a joint effort; Winn Technology Group collected the data and WaveLength Market Analytics conducted the analysis. Channel Navigators, LLC and Telecom Strategy Partners LLC also contributed.
 
To download the study, click this link http://www.wlanalytics.com/Cloud
 
This press release can also be viewed on CBS' Finance Section.
 
About WaveLength Market Analytics 
WaveLength Market Analytics specializes in combining knowledge of technology markets, products and services with data management & quantitative analysis for strategies & sales and marketing programs that deliver superior results. WaveLength's work includes business–to–business, consumer, service provider, and distribution channels in the world's largest technology markets both established and emerging.
 
About Winn Technology Group
Winn Technology Group is a privately–held marketing solutions company headquartered in Palm Harbor, Florida. Exclusively providing marketing support to the technology industry since 1990, Winn has provided leading firms with B2B marketing solutions, conducting thousands of initiatives to:
  •   Generate qualified leads and appointments, 
  •   Capture attendees for live events and webinars, 
  •   Nurture, cultivate, and qualify actionable leads, 
  •   Collect and analyze valuable business intelligence, 
  •   Build brand awareness and name recognition.

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