Cost reduction not the only factor driving cloud adoption: Everest Group

According to a latest survey on cloud adoption conducted by Everest Group and Cloud Connect, cost reduction is not the factor that drives the enterprises to adopt cloud solutions but it’s the improvement in the productivity and speed to the market that encourages them. The report titled “Enterprise Cloud Adoption Survey” discusses the cloud adoption trends, barriers to cloud adoption and challenges for firms while adopting cloud technology. According to the survey report, a large number of cloud adopters are now planning to transfer more of their IT functions to the cloud platform. The report claims that the sentiments of most of the cloud service adopters remain positive as they have met their objectives of deploying cloud platform in their organization.

Everest cloud survey

The enterprise cloud adoption survey was commissioned by Everest Group , a leading research and analyst firm and Cloud Connect, the leading cloud service provider. The survey was conducted among cloud buyers, cloud service providers and cloud consultants as three different distinct groups. The study in total surveyed 346 IT professionals from varied industry verticals.

The study that was conducted among the three different segments has revealed some interesting facts.  The report states that while buyers of cloud services perceives reduced time to market and flexible infrastructure capacity as the top most drivers of cloud adoption, cloud service providers believe that it’s the total reduction in cost that attracts the companies to adopt cloud solutions.

Other key findings from the “Enterprise Cloud Adoption Survey” report:

  1. Among the respondents, 30% of them have already implemented private cloud solutions, 36% are planning to implement in near future and 23% have included cloud adoption in long term plan. About 11% of them said that they have no such plans as of now.
  2. About 46% of the respondents plan to transfer their email and collaboration function to cloud platform. While 42% plans to transfer disaster recovery and archiving to cloud platform, 39% of them plan to transfer business analytics functions to cloud.
  3. According to the report, majority of the respondents were positive on their decision to adopt cloud adoption. The report states that 82% of the buyers met their objective of flexible infrastructure and 71% of them met their objective of speed to the market by adopting cloud solutions.
  4. 64% of the respondents said that they are satisfied with the services and 88% indicated that they expect more benefits from cloud solutions in future. According to the research firm, this is an indication of more and more sophisticated IT functions moving to cloud platform.
  5. According to the report, security concerns are the top most barriers for cloud solution adoption.

Further the report recommends service providers to change their pitching tone from cost reduction to increase productivity to align with buyer’s desire to adopt cloud solution.

You can download the report from here.

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