Why Companies Are Cutting Back Cloud Investments

 
 
By Dennis McCafferty  |  Posted 10-05-2016 Email
 
 
 
 
 
 
 
 
 
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    Why Companies Are Cutting Back Cloud Investments
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    Why Companies Are Cutting Back Cloud Investments

    No, cloud computing isn’t going the way of the eight track, but companies are reassessing their cloud options and deciding to keep certain IT functions in-house.
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    Ramping Down
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    Ramping Down

    41% of survey respondents said their organization is either in "full production" or in a transformational period when it comes to cloud adoption, but that's down from 53% who said this in 2014.
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    Token Authority
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    Token Authority

    86% said IT is involved in some way when line of business units acquire cloud apps, but only 40% said IT has the authority to make final decisions about these investments. Just over one-third said IT acts more as a consultant on these matters.
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    Available Options
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    Available Options

    Among companies deploying the cloud, 46% are opting for a private cloud model exclusively, 28% are solely investing in the public cloud and 26% are adopting a hybrid cloud model.
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    "Send" Button

    51% of survey respondents said their organization uses cloud tools for email, down from 59% who said this in 2014.
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    Workflow Shift
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    Workflow Shift

    45% said their company uses cloud apps for business productivity, down from 63% who indicated this in 2014.
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    Crowd Source
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    Crowd Source

    Only 39% said their organization uses cloud apps for collaboration functions, down from 52% who said their company did this in 2014.
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    Data Distribution
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    Data Distribution

    Just 35% indicated that their organization takes advantage of the cloud for analytics/business intelligence, down from 53% who said their business did this in 2014.
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    Home Team
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    Home Team

    Only 29% said their organizations deploys cloud tools for help desk support, down from 37% who indicated so in 2014.
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    Biggest Benefits of Cloud Among Large Enterprises:
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    Biggest Benefits of Cloud Among Large Enterprises:

    Cost reductions: 47%, Lower capital expenditures: 35%, Modernization of legacies: 35%
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    Top “as a Service
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    Top “as a Service" Models Deployed Among Cloud Adopters

    Software as a Service: 74%, Infrastructure as a Service: 42%, Platform as a Service: 33%
 

While the cloud remains a versatile resource for business functions, organizations are reducing their overall adoption of cloud tools, according to a recent survey from CompTIA. Don't get us wrong here: The resulting "Trends in Cloud Computing" report doesn't convey the impression that the cloud will soon go the way of the eight-track music tape. However, CIOs and other company leaders are reassessing their investment options, and are concluding (for now at least) that certain capabilities are best supported internally. Among functions and needs that are seeing a notable reversal here: email, overall business productivity, collaboration, analytics and, yes, even the help desk. However, the cloud should continue to deliver strategic value, especially since such migrations enable businesses to reduce costs while modernizing antiquated legacies. "The cloud market is undergoing refinement as users gain greater appreciation and understanding of what cloud computing entails," said Seth Robinson, senior director of technology analysis at CompTIA. "This is a good reminder that a significant number of businesses are still learning about cloud concepts and performing experiments, pilots and initial migrations. This rebalancing doesn't mean that the overall cloud market is in decline. (The) cloud is a robust part of the larger IT landscape and a greater part of total IT spend will shift to cloud technology. Cloud offerings will also expand budgets as they expand the limits of what a business is able to accomplish." An estimated 500 business and IT execs took part in the research.

 
 
 
 
 
Dennis McCafferty is a freelance writer for Baseline Magazine.

 
 
 
 
 
 

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