Five Things to Expect from the Future of Cloud Computing

Tuesday, July 23rd, 2013

North Bridge Venture Partners recently released their third annual cloud computing survey. It features predictions for the cloud based on answers from 855 respondents.
Survey respondents included a combination of cloud application and platform vendors, business users, and IT professionals. Their answers paint a picture of what’s in store for the near future of cloud computing — from the growth of IT apps to the rise of the hybrid cloud.

2013 Future of Cloud Computing – 3rd Annual Survey Results from Michael J Skok

1. Growth of SaaS
Nearly two-thirds of respondents have already adopted SaaS. This figure is up 15 percent from 2012 and expected to increase by seven percent over the next year. The survey indicates that agility and innovation are the two key drivers behind SaaS adoption. Organizations that value agility were five times more likely to adopt SaaS, and organizations seeking innovation were four times more likely to adopt SaaS.

2. Growth of IT apps
52 percent of organizations currently use apps that advance their business priorities, such as content management, e-commerce, HR, file sharing, and CRM. Business apps are more widely-used by organizations compared to the 36 percent of organizations that currently use IT apps to facilitate such tasks as project management, security, help desk, and systems management. However, IT apps are expected to see the fastest growth over the next 12 months, trumping business apps as the fastestgrowing type of SaaS application.

3. Rise of the hybrid cloud
The hybrid cloud (an environment composed of a minimum of one private cloud and at least one public cloud) is expected to grow from 27 percent to 43 percent in five years, at which time the public cloud is predicted to have a 32 percent usage and the private cloud, a 25 percent usage. The hybrid cloud is expected to eclipse both public and private clouds as the preferred model of data architecture because its flexibility alleviates some of the top inhibitors of cloud adoption: reliability, bandwidth, compliance, and privacy issues.

4. Tech industry expected to benefit the most
The tech industry is expected to benefit most from the cloud, more so than the public sector, media and entertainment, education, and financial sectors. The cloud also leads to reduced IT staff – 24 percent of respondents reduced their IT headcount in 2013, and 23 percent reported that they were planning to do so.

5. Cloud security concerns diminishing
46 percent of respondents reported safety as a concern related to cloud computing, which is down 18 percent. This could be due to a growing understanding of the cloud, as well as improved cloud restore products and data management services.

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