Cloud computing is rapidly entering an entirely new phase one destined to prove far more transformative and disruptive than the initial phase of cloud deployment. Cloud is driving a comprehensive transformation of digital assets in organizations of all stripes as IT decision-makers begin to view the emerging cloud construct as a proxy for the transformation of IT itself.
Cloud use is rapidly evolving, and so too are the technologies that enable it. Enterprises that have capitalized on ‘Cloud 1.0’ or previous generations of cloud computing are now embarking on a more concerted strategic IT transformation that spans on-premises resources and a variety of third-party hosted services.
Our demand intelligence shows that a phased transition is well under way, which we at 451 Research characterize as the emergence of ‘Cloud 2.0.’ Enterprises of all sizes are maturing in their use of cloud-enabling technologies (CET) deployed on-premises and in their use of third-party delivery models. This comes in response to many factors, including an increased need to deploy more mission-critical applications and growing cloud adoption by larger, more complex and demanding firms. Our data from this study shows that spending for on-premises and hosted private and public cloud is evenly distributed across companies of all sizes. Pure adoption of hosted public cloud ranged from 40% to 51% of cloud budgets in the study.
For hosted private cloud, the range is 40% to 60%. For CET virtualization, automation and orchestration, the percentage of cloud budgets ranges from 35% to 40%. The evolution of Cloud 2.0 represents a multiyear transition. The technology implications of this transition are profound. IT will be forced to exert more control and become less risk-averse. As a result, we believe enterprises will increasingly opt for a mix of private cloud solutions that are deployed on-premises or delivered via third-party services. Results from our survey show that nearly three-quarters (72%) of organizations polled say that cloud will become the primary application deployment method within just two years. And of those cloud workloads, just over three-quarters will be deployed in private clouds (on-premises and hosted private cloud).
This 451 Research report delves into the transformative impact of Cloud 2.0 and provides key findings and recommendations for enterprises undergoing the transition to a multi-cloud, hybrid infrastructure. Download this Withpaper to get a complete insight of Transformative Impact of the Cloud in IT.
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