The State of the Cloud

Cloud adoption has moved past the early stages and into the beginnings of a mass adoption curve. According to Gartner, cloud only accounts for 28 percent of IT spend. This may seem surprising given all the hype and grandiose statements by CIO’s over the past 5 years along the lines of, “We are moving everything to the cloud!”

The simple reality is, 72 percent of IT spend has not gone there yet. What we now know is, a large portion won’t go to public cloud at all. Whether the reason is control, reliability, and yes…even cost, the cloud is simply not the right move for many businesses to use for their applications.

While it is true SaaS adoption is progressing and new development efforts are overwhelmingly taking place in the cloud, legacy IT systems that support the bulk of economic activity for established businesses often do not make sense to simply pick up and move. This is not to say that those applications would not evolve or change. In fact, according to 451 Research, half of all businesses no longer physically host their IT assets in-house, and that trend is accelerating to less than 30 percent by 2020.

Call it private cloud or hybrid cloud, businesses are finding they need to disrupt traditional IT. Going along with “business as usual” simply will not cut it in the coming years. A mature and cost-effective commercial data center market coupled with increasingly faster and cheaper connectivity has allowed companies to rethink where they place their IT assets, even if they are not using public cloud. Download this whitepaper to learn more.

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