Why Innovation Is Moving Off-Premise

 
 
By Dennis McCafferty  |  Posted 10-14-2016 Email
 
 
 
 
 
 
 
 
 
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    Why Innovation Is Moving Off-Premise
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    Why Innovation Is Moving Off-Premise

    Adopting a hybrid cloud strategy can facilitate innovation while meeting customer expectations more readily.
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    Aligned Effort
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    Aligned Effort

    78% of global C-level execs said their cloud initiatives are "coordinated" or fully integrated, compared to just 34% who said they simply "had a solid plan to adopt cloud computing" in 2012.
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    Corporate Reinvention
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    Corporate Reinvention

    92% said their cloud efforts have enabled the creation and support of new business models.
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    Elevated Profile
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    Elevated Profile

    91% said cloud deployment has helped them expand into new industries.
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    Money Line
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    Money Line

    90% said the cloud has helped them create new revenue sources.
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    Lean
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    Lean "In"

    54% said they're adopting hybrid cloud solutions to lower the total cost of ownership for IT, and 42% said they're seeking to enhance operational efficiencies.
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    Brand Boost
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    Brand Boost

    42% said they're adopting hybrid cloud solutions to facilitate innovation, and 40% said they need to meet customer expectations more readily.
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    In-House
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    In-House

    Survey respondents said they expect 45% of workloads to stay on dedicated, on-premise servers two years from now, even as cloud adoption expands.
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    Top Cloud Obstacles
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    Top Cloud Obstacles

    Perceived security/compliance risks and requirements: 47%, Cost structure considerations (i.e. weighing capital expenses versus operating expenses): 41%, Concerns over possible operational disruptions: 38%
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    High and Low
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    High and Low

    57% of C-level execs at high-performing organizations said their company has fully integrated their cloud initiatives, compared to just 22% of those at low-performing businesses who said the same.
 

 The majority of organizations are significantly stepping up hybrid cloud initiatives—moving beyond what was once described as "solid planning" for adoption into highly coordinated, fully integrated migration initiatives, according to a recent survey from IBM Institute for Business Value (IBV). The survey report, titled "Tailoring Hybrid Cloud: Designing the Right Mix for Innovation, Efficiency and Growth," indicates that companies are already seeing results: Thanks to the cloud, they're creating and supporting new business models, while expanding into new industries. They're also discovering new revenue sources. That said, they're not ready to go "all in" either, as they expect a significant share of workloads to remain on-premise for the immediate future. To expand cloud deployment further, IT will need to work with business leaders to address concerns about security, costs and the potential for operational disruptions. "(The) cloud can be the centerpiece of an overall organizational transformation," according to the report. "Potential business impacts—and the associated financial implications—need ongoing scrutiny. During each stage of cloud adoption, combine the insights of business and IT. A tailor-made environment for your organization will be possible when IT employees truly understand what the business needs and LOB employees know what technologies/IT can do for them." More than 1,000 global C-level execs took part in the research.

 
 
 
 
 
Dennis McCafferty is a freelance writer for Baseline Magazine.

 
 
 
 
 
 

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