Study Shows That Most Enterprise Workloads will be in the Cloud by 2018

cloud-in-handWithin the next two years, more than half of all enterprises expect to be running their workloads in the cloud, according to recent research. Currently, 41 percent of enterprise IT workloads are in the cloud. By 2018, that number should climb to 60 percent, according to the survey done by 451 Research, a technology research company. The survey polled more than 1,200 IT professionals worldwide, in addition to conducting interviews with IT executives and senior IT buyers.

What could explain this significant increase in projected cloud usage? For one, business executives are overcoming fears about security and privacy in the cloud. As executives gain more experience with the cloud, many are becoming confident that the cloud is a trustworthy business tool. In fact, 38 percent of enterprises polled said they already have a “cloud-first” policy, meaning that they at least consider – if not prioritize – a cloud solution for all workload deployments.

Another factor is events like company mergers, acquisitions, divestitures, hardware buys, software upgrades and data center expansions, which are some of the most common triggers for increased cloud usage. Although moving new services, apps and data to the cloud is fairly straightforward, transferring services and information already run in-house presents challenges. As Ezra Gottheil, an analyst at Technology Business Research, explains, “when things are working, there’s little incentive to change, even if things will be better after the change.”

The study also found that on-site private clouds and software-as-a-service (SaaS) models are currently most common among enterprises, with each accounting for 14 percent of all enterprise workloads. The use of on-site services will remain flat over the next few years, however, while SaaS is predicted to grow to 23 percent by 2018. Infrastructure-as-a-Service (IaaS), currently the smallest area of cloud usage, will double in that time, from 6 percent to 12 percent.

“IaaS and SaaS allow organizations to focus their efforts on their business, rather than on maintaining costly and complex data centers and infrastructure,” Andrew Reichman, research director of 451 Research, says in the report.

This aligns well with the cloud’s increasing agility and flexibility, both of which are great assets to businesses with ever-changing needs. Cloud usage is currently strongest in categories that have traditionally been drivers of IaaS adoption, like web/media and application development.

Businesses are increasingly embracing the cloud for enterprise workloads. The cloud can also be a tool to help businesses streamline workloads. The Fasetto app allows users to centralize files so that they can be accessed and shared from anywhere.

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