This is a good article which summarizes some of the main factors helping drive cloud adoption.
According to David Smith, ceo of The GFF, he says “Small businesses adopting cloud is an absolute perfect match. It reduces the requirement to have long in-depth analysis of what functionality you can get from technology or application providers. It really helps you to take on board new functionality very rapidly on a pay-per-use basis – so there are very few barriers to engagement.”
Read the entire article here: Moving to the cloud frees up money for innovation
Here are some interesting statistics from a recent IDC report:
- Cloud computing will have created nearly 14 million new jobs internationally between 2011 and 2015
- By as early as 2015 – business revenues from IT innovation enabled by the cloud could reach $1.1 trillion a year
Also, a recent zdNet survey found the following:
- Efficiency is the main driver of cloud adoption for businesses
- 43% citing backup and archiving as number one use case
- 25% business continuity
- 22% collaboration tools
- 19% big data processing
- The cloud-based business analytics market could be worth $16.52 billion by 2018, which is more than triple its 2013 size.
- The overall revenue from cloud computing sales is forecast to increase from around $20 billion in 2012 to almost $150 billion by 2020. This represents 8% of all corporate technology spend.
“Gartner analyst Ed Anderson, meanwhile, suggests growth may be more dramatic. By 2016, he says, it’s expected to be a $207 billion industry.”
And finally some of the specific reasons driving this move to cloud…
“Reasons for such growth predictions include the perception of increased business agility, vendor choice, and access to next-generation architectures, he claims.”
A little humor before our message:
Why is the word “solution” so difficult for some to digest? True, I’m sure the word means different things to different people but to me it’s very straight-forward. Let me explain.
A “solution” is when the sum of parts collectively comprise a product or service that can be used or consumed without the need for additional parts. A car, for example, is a “solution”. Sure it needs gas and occasionally other consumable parts such as tires, oil changes or new wiper blades but the point-is that you can drive this “solution” off of the auto dealers lot ‘as is’. As technology relates, a computer is an example of a solution. It already has all the parts put together where you can go into your local computer shop and buy a computer, boot it up, and immediately begin using it. The hard drive, video card are all integrated and the operating system is already installed. All you do is some customization of your desktop and add services such as an internet provider or additional software packages. Simple and easy!
This concept of ‘piece-parts’ vs. ‘solutions’ is the irony of “the cloud”. Software as a Service (SaaS) applications are the dream of “solutions” realized. To non-technical persons they would not think anything of all the ‘piece-parts’ that were put together to create something that you just ‘drive-off-the-lot’ as my car analogy in the previous paragraph illustrates. And this is EXACTLY how it should be, in my humble opinion. All the technology involved to make a solution should be completely transparent to users and they should not care. It should just simply work.
I think far too often people fall in love with their ‘piece-part’ and think the world revolves only around their product or service when this is not true.
*Thinking to myself ironically* I guess Cloud Is A Fad and people won’t continue to demand “solutions”. I guess ease of use and simplicity will never work. Naw, never, not in a million years *more irony*. Microsoft Windows with simple point-and-click functionality will never catch on. Apple iPad’s with large touch screen interfaces and big buttons will never be adopted by the masses. And, of course, “the cloud” will never be used in the enterprise because it’s just for personal use like Facebook and G-Mail. It’s just a fad.
I guess the billions, probably even trillions, of dollars in total being spent on building cloud infrastructures and research are pipe dreams. I guess all the really, super smart technology companies like Microsoft and Oracle will continue to sell traditional on-premise software and not have an aggressive cloud strategy eventually. Wait, Microsoft introduced Office365 for cloud and Oracle’s Larry Ellison Reveals Oracle’s Public Cloud; Calls Salesforce The ‘Roach Motel’ Of Cloud Services.
It’s ON folks. The opportunities within the emerging cloud marketplace are tremendous. Whomever delivers the winning formula of offering “solutions” which are highly-effective, yet easy to use and digest will win. Plain and simple. ‘Piece-parts’ will remain just that, ‘parts’ with unrealized true potential just like a hard disk drive has no value without software. And software has no value without processing and storage.
Boy was that easy, simple and effective!
What is you you ask? You are reading it right now. Creating this web site with a highly-effective blog from WordPress , then adding a Content Management system from Joomla , then adding a testing/education application from moodle , and then adding a social portal from elgg took me maybe a grand total of one hour time. This is not to brag but rather to demonstrate the fact how far we have come regarding the great progress of offering simple, yet highly-effective point-and-click tools to make powerful applications.
This web site is an example of just this. It cost me a grand total of the domain fee of ~$10/year plus one year of hosting at ~$60/year. ~$70 total! All the software is open source and free to use for non commercial usage. A great deal, in my opinion.
Anyhow, I remember all that not long ago how I would have had to manually install databases and configure connectors and mashup applications. It was doable but time-consuming and frustrating. This ease of use allowed me to jump right into settings up this web site exactly how I want it to be from a functionality standpoint instead of dealing with all the technical details of getting everything working correctly.
I think this type of dynamic is what is going to be changing in the Information Technology world. Traditional IT folks will need to become more agile on enhancing business processes or become more focused on creating useful tools instead of the details of software installation, patching updates and/or upgrades. In other words, I can have my applications hosted in ‘the cloud’ where a service provider does all the low-level technical things that still need to be done, but I can channel my energy to more productive activities.
The idea of a Development Platform being so easy to use, yet powerful enough to be deployed for enterprise applications is here to stay. It’s a way to easily jump start your path to efficiency!
What do you think?