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Will Economic Recovery Drive Enterprise Cloud Initiatives?

By Dennis McCafferty on 2010-12-13


CIOs and other senior IT managers say they expect demand for cloud-computing solutions to rise in their enterprises as an anticipated economic recovery takes hold. In some cases, these IT decision-makers expect to be the ones driving the cloud initiatives, while in other cases the movement toward the cloud is expected to be driven by other enterprise stakeholders, according to a new report released by Savvis Inc and based on a survey conducted by IDG Research Services and CIO Custom Solutions Group. Respondents say cloud computing is needed in the enterprise computing infrastructure to enhance flexibility, increase competitive advantage and drive innovation, among other perceived benefits. But the majority of respondents also feel it's difficult to find the “just right” cloud solution for their enterprise, according to the report "Enterprise-Grade Cloud Computing Adoption: Trends and Purchase Requirements." The report also indicates that organizations need cloud solutions that can be customized to go beyond the standard application level, as well as address security and service-level needs. More than 170 CIOs and IT managers worldwide took part in the survey, which can be accessed here. The following are selected highlights:

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75 percent respondents currently use enterprise-grade cloud computing solutions for improved IT services, or plan to do so over the next five years.

67 percent of respondents say the level of IT-provided service for their organization has improved over the last year.

10 percent say the level of IT-provided service has declined over the last year.

Goals during the anticipated economic recovery (percent respondents):

Flexibility to react to changing market conditions (48 percent)
Competitive advantage (48 percent)
Enabling innovation (48 percent)
Improved anytime/anywhere access to data (40 percent)
Enabling business continuity (38 percent)

69 percent of respondents say that cloud-computing solutions can help them reach the goal of increased flexibility.

More than one-half of respondents say that cloud computing can offer a competitive advantage and enable innovation.

60 percent of respondents say it's extremely or very challenging to find the “right” cloud computing solution for their companies.

23 percent of respondents say their organization's business leaders sometimes bypass IT and purchase solutions on their own.

64 percent of respondents expect that spending on hosted, on-demand or cloud-based software at their companies will increase over the next year.

42 percent of respondents prefer to buy enterprise-grade, best-of-breed cloud solutions.

Just 21 percent of respondents believe today's cloud computing solutions incorporate security features “to a great extent.”

Only 28 percent of respondents are highly confident that today's cloud computing solutions can offer security features that go “beyond the basics.”

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