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Key Drivers and Inhibitors in Cloud Computing

Key Drivers and Inhibitors in Cloud Computing

Drivers of Cloud ComputingWhat is making companies from SMB to Enterprise choose the cloud for business applications? What is giving these businesses cold feet in cloud adoption? As the cloud continues to take hold, it is important for vendors to consider the driving forces and common fears that purchasers may have in the cloud.

Thanks to the 2014 Future of Cloud Computing, the fourth annual study conducted by North Bridge Venture Partners, Gigaom Research, and 72 other collaborators; we would like to share with you selected results of the largest cloud computing study: The Future of Cloud Computing.

Key Cloud Computing Drivers

What makes companies choose the cloud? As the cloud matures and becomes a larger portion of the enterprise, it is important to look into what companies consider important to their business growth. In 2014, four key drivers point to the cloud computing benefits.

  • The Move from Capital Expenditures to Operational Expenditures: Especially in organizations with more than 5,000 Employees, the move from CapEx to OpEx is becoming increasingly important. Specifically, 27% of respondents believe that the use of a cloud platform service will help them to lower capital expenditure.
  • Cost: With over 80% of IT budgets going to legacy and other non-cloud applications, it is important to consider that cost is a major driver for companies to choose cloud computing. Thanks to a simple subscription-based model, cloud computing is an easier option and requires little to no physical maintenance costs.
  • Agility: Why choose a platform that is complex to implement, expensive to expand, and slow at limits? Cloud Agility is an important driver in today’s business world.
  • Scalability: Growing companies need solutions that are able to grow with the company. When a legacy platform hits its cap, things like uptime and are affected. This is what makes the cloud valuable to businesses.

Cloud Computing Inhibitors to Overcome

There are still many companies that fear the cloud for one reason or another. In a follow up to our recent article on overcoming cloud fears, we share the current cloud growth inhibitors.

  • Security: Cited by 49% of respondents, security is an overwhelming concern among businesses.
  • Privacy: Up 6% from Last Year, 31% of respondents find privacy to be a concern in the cloud. This tension comes into play as companies strive to find a middle ground between personalization and anonymity.
  • Compliance: While many vendors pride themselves on their documentation as secure and compliant, over 33% of purchasers still consider regulatory issues an inhibitor to cloud selection.
  • Interoperability: The value of an integrated cloud solution still is not grasped by some purchasers. Although there was a 45% decrease in consumer fears of interoperability, this still was listed as a notable fear.
  • Lock-In: An ironic fear of consumers using on-premise products, 29% of purchasers cite lock-in as an inhibitor to their cloud selection. Finally, 25% think that bandwidth will inhibit their cloud adoption.

Related: 7 Truths about the Present and Future of Cloud Data

As the cloud becomes more and more of an important factor in business operations, it is often considered that business applications are moving from “Amazing Because Cloud” to “Impossible Without Cloud.” We again thank Gigaom Research and North Bridge Venture Partners for conducting The Future of Cloud Computing and look forward to future releases. For the full presentation, click through the SlideShare Document below.

Brittenford Systems is committed to utilizing the cloud to assist your business growth. As a Top 100 VAR, we provide our customers with many different cloud solutions: Accounting through Intacct, Visionary CPM Suite HostAnalytics, Donor Management through Orange Leap, and Expense Management through Concur. Contact us today to learn even more reasons your business should choose cloud computing.


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