If you don't think too many organizations, including government, are using cloud computing, you are right.
But if you think that's the way it will remain, you are wrong.
That's the message from IDC's annual IT analyst conference in Boston yesterday. IDC, which defines cloud computing as "shared services,under virtualized management, that are accessible over the Internet via Internet standards," puts the current adoption rate at 15 percent - 25 percent. But in three years, expects those numbers to jump to 25-50 percent.
(These numbers come from a global survey of CIOs in 2008, prior to the economic meltdown.)
Here's what organizations are putting in the cloud:
- IT management applications
- Collaboration apps
- Personal apps
- Business apps
- Application development/deployment tools
- Server capacity
- Storage capacity
And here are the 7 reasons why CIOs are using the cloud (in order of importance):
- They are easy/fast to deploy
- You only have to pay for what you use
- Low monthly payments
- Less inhouse staff
- Offers the latest functionality
- Encourages more standard IT
- Sharing systems
Notice that economics (saving money) is NOT the first reason. Rather, it has to do with speeding up the deployment schedule.
But why are nearly 85 percent of organizations steering clear of cloud computing? Here are the top reasons why:
- Security concerns
- Performance concerns
- Availability issues
- Hard to integrated with in-house IT
- Not enought ability to customize
- Worried that cloud computing will cost more
- Bringing back applications inhouse will be difficult
- Not enough major suppliers
Frank Gens, IDC's senior VP, said that organizations are looking for suppliers who can move their cloud offerings back on premises if the need arises. Clearly organizations want flexibility when it comes to cloud offerings.
And government? For now, expect to see private clouds emerge as the stage where cloud services will be made available by the IT department to user agencies.
Finally, CIOs who decide to move on-premises IT into the cloud are doing it because they want to:
- Consolidate
- Virtualize
- Automate.
Is it easy? No.
Is it expensive? Yes.
But it is going to happen.