Companies Becoming More Measured in Use of Cloud Computing Options
Friday, September 30th, 2016
Companies continue to be heavily invested in cloud computing, but they're also becoming more refined and savvy in the technology options they choose, according to a new study from , the nonprofit association for the technology industry.
CompTIA'sstudy finds that well over 90 percent of companies surveyed claim to use some form of cloud computing. However, more companies place themselves in the non-critical use category (38 percent in 2016 vs. 27 percent in 2014), rather than the full production stage (33 percent vs. 42 percent).
"A quick glance at this data could lead to the conclusion that companies are walking backward," said Seth Robinson, senior director, technology analysis, CompTIA. "The reality is that the cloud market is undergoing refinement as users gain greater appreciation and understanding of what cloud computing entails."
The report reveals that the majority of companies have been using cloud solutions for between one year and five years. Just 6 percent claim to have been using cloud solutions for more than five years. Another 23 percent of companies have been using cloud for less than a year.
"This is a good reminder that a significant number of businesses are still learning about cloud concepts and performing experiments, pilots and initial migrations," Robinson noted.
Software-as-a-Service is the most heavily used service model (74 percent of companies surveyed), though Infrastructure-as-a-Service (42 percent usage currently) may become the fastest growing model over the next several years. Platform-as-a-Service (33 percent) will also grow as companies become more sophisticated with their development approach.
Data on application usage also suggest a greater comprehension of how IT is running – and where cloud fits in. For most applications there was a dramatic drop in the number of companies that say they are using a cloud solution. There were corresponding jumps in the number of companies reporting use of on premise systems; and of companies unsure of the way a given application is implemented.
"This rebalancing doesn't mean that the overall cloud market is in decline," Robinson explained. "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."
Cost cutting has returned to the top spot on the list of cloud benefits, with large companies (500 or more employees) driving this sentiment. Medium-sized firms (100-499 employees) and small companies (less than 100 employees) are more interested in reducing capital expenditures.