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2014 Cloud by the Numbers: Stats on Adoption Prove the Computing Trend is Really a Technological Revolution

Blank cloud shaped speech bubbles Last year, statistics rolled in from numerous sources that all revealed the same basic fact: cloud computing has changed the technological landscape. The technological method, partially because of its catchy title, is viewed by many as a trend. However, its growth has become so explosive that the field is now beyond the bounds of trendiness. It’s really become a computing revolution. Ellen Messmer of Network World remarked that trust was still an issue for some companies that were concerned about privacy and security, but that companies from all economic sectors were “starting to give it a try.” How the cloud is used by businesses According to Gartner, use of the environment by businesses in 2013 was across a broad spectrum. Almost half of it – 48% – fell into the general category of advertising platforms. The other top-three most common uses in the business world were for BPaaS (business process as a service, a form of business process outsourcing) – 28% – and SaaS (software as a service) – 15%. Less popular forms of the technology included IaaS (infrastructure as a service) – 5%; automation, security, or management – 3%; and PaaS (platform as a service) or application development – 1%. The solution is typically discussed in terms of software, platforms, and infrastructure. Obviously each of those are listed above. However, it is used extensively for marketing purposes that lie outside the structure of the IT department. Once that aspect is set aside and the approach is examined specifically within an IT framework, BPaaS stands out. The infrastructural environment’s use for both business processes and software indicate, says David Linthicum of InfoWorld, that its success is expressed more in terms of “tangible activities for business users” than by the more overarching, systemic offerings provided by infrastructural or platform services. Growth of the cloud In 2013, GigaOM Research and North Bridge Venture Partners conducted a study in collaboration with almost 5 dozen businesses. Their survey gathered information from hosting providers and business executives to determine the technology’s growth rate and the factors promoting and preventing its adoption. The survey found that between 2012 and 2013, the percentage of businesses using the method in some form rose 8%, reaching a total of 75% adoption. These figures align with projections established by GigaOM that show the solution’s global market expanding to $159 billion this year, the result of 127% growth from its 2011 level. Major factors leading businesses to the approach include scalability and reliability. However, the most popular factor for adoption of the environment is expense: 7 out of 10 GigaOM/North Bridge survey respondents, including the pools of IT and general business executives, believe that a transition to the IT system would provide an equivalent or improved total cost of ownership (TCO). Government benefiting from cloud just as business world is Just as industry is benefiting from the model, so is the public sector, according to a couple of case studies reported in StateTech Magazine:
  1. Somerset County in Maine increased energy efficiency with the new strategy, cutting its IT costs by 40%.
  2. The Southeast Library System, which provides computing services to over 7 dozen libraries in Minnesota, reduced its expenses over $20,000 by transitioning to an email platform based on the approach.
StateTech’s Jimmy Daly notes that the solution has been on the rise in government because it has experienced such massive success among consumers: personal acceptance by employees has led to organizational acceptance by governmental entities. Daly also indicates that the adjustments in attitude are backed up by hard facts about how dominant it has become as an emergent technology:
  • InformationWeek predicts that the total services provided through the method  will represent a worldwide market of $180B by 2016;
  • Business Insider revealed in 2012 that even at that point, 4 out of 5 state and local governmental CIOs were using some form of services reliant on the technology for their organizations;
Also per Business Insider, 3 out of 5 CIOs of state and local governmental systems listed the transition to the new IT system as their #1 priority in 2012. It would appear, based on the strong growth of the strategy in both the public and private spheres in 2013, that prioritization became action the following year. International reach of the cloud model The adoption of the method is an IT phenomenon that extends around the globe. Its impact is not surprising in the Information Age, indicating how – in many ways – the Web has democratized technology, spreading similar standards and practices across the planet. For instance, by 2016, the system will represent the majority of new IT expenditures in India, says a Gartner study on the subject. The report indicates that 2016 will be the true game-changer year for the solution – diverging from Linthicum’s assessment that 2013 represented the peak of the approach, at least regarding the Indian market – because hybrid versions will start to become commonplace within enterprises that year. The study suggests that by 2018, almost half of India’s companies will have a hybrid environment in place. Indian Businesses, much like those in other countries, have had security-related concerns regarding the strategy due to its virtual, non-physical structure. Although companies have generally been concerned about the inability to physically locate virtual machines, making protection methods necessarily more sophisticated, Gartner notes that another major challenge for adoption of the model has been confusion. According to the research company, the concept of the new method has been defined in numerous ways, some of which have conflicted. Gartner research VP Chris Howard stated in October 2013 that people and businesses have misunderstood the technology as a single system, when it is actually “a spectrum of things complementing one another and building on a foundation of sharing.” Howard further elaborated that the diversity of elements that comprise the approach’s techniques, in combination with some companies’ desires to isolate services, have generated three distinct types of hosting that makes use of the strategy: public (the standard model), private (a standalone structure for one business), and hybrid (a mixture). It’s clear from the above statistics that this form of computing has generated an IT revolution. The strategy is being adopted quickly. Its rise to prominence is evident in both the private and public sectors, in the United States and across the globe. Its widespread acceptance has created markets for three distinct categories of the system: public, private, and hybrid.

Where the Internet of Things Stands

The IoT

Did you hear about Google buying Nest for an incredible amount of money a few weeks back? Be honest: do you have any idea who Nest is or what they do? More specifically – be honest again – do you have any idea what Nest is trying to do or what platform they are built upon? If the answer to all those questions is no, don’t worry, you’re not alone.

Like the Cloud in 2012, the Internet of Things is about to come on strong. If you look into the tech corners of the Internet, every blogger is talking or has posted about the Internet of Things. Like Cloud Computing in 2012, the Internet of Things feels like an industry secret which is just starting to leak out to the public. As noted in our recently published inforgraphic, the Internet of Things is about to rise.


Tips for Corporate Cloud Adoption

Corporate Cloud Adoption

Adopting Cloud Solutions from the Couch to the Corporation

A couple of weeks back, Solar VPS President and COO Ross Brouse (@RossBrouse), gave a technical keynote presentation at New York City’s Cloud Expo. The presentation covered corporate Cloud adoption – how Cloud adoption begins on the couch and makes it all the way to the boardroom. Well, in this short article, we are going to run with that flag and dive into the topic a bit. So, if you’re a company of any size looking to fully Cloudize (word, not a word? We think it should be), err, make the jump into the Cloud, here are a few tips for successful Cloud computing adoption.

Understand the Difference

Before even considering a move into the Cloud, companies and non-IT minds need to understand the difference between the public Cloud and the private Cloud. Are you streaming music via Spotify right now? Are you looking at a friend’s Facebook status, tweeting to a person halfway across the world or downloading data from a shared Dropbox account? If so, you are using the public Cloud. The public Cloud, is as the name suggests, for public use. On the other hand, a private Cloud deployment is a Cloud deployed and maintained behind a private, closely guarded, corporate firewall. All the data stored in the private Cloud require corporate access keys and are housed behind a stringent firewall to ensure security.

When deploying a corporate Cloud, although some employees might use applications like Dropbox, and SugarSync to store less vital all information, the most sensitive data is stored, secured and kept behind your corporate firewall, in your corporate private Cloud only accessible using the right access keys.


The Cloud: Agility and Flexibility

Cloud Computing Is Great For Finances and Agility

Cloud Computing Is Great For Finances and Agility

Here’s the thing – for the longest time the marketplace has been told that the Cloud is all about excellent price structures. Regardless of it’s storage, mobile synchronization, data security and low carbon footprint, the marketplace has been sold on how inexpensive the Cloud is for businesses of all sizes. From Amazon Cloud Services, to Google Cloud Solutions to our very own Solar VPS Cloud offerings, the marketplace at large has been sold on how cheap Cloud computing solutions are. Now, while this is the case – Cloud web hosting, Cloud storage and Cloud computing are very affordable – time and time again case studies show that the highest selling point of Cloud Computing solutions isn’t the price – it’s the agility. For the vast majority of corporate consumers, the major selling point of Cloud Computing solutions isn’t it’s cost comparison internal IT solutions, but how quickly Cloud solutions can be deployed, re-deployed, scaled and fitted to custom sized needs. It’s about agility.

But what do we mean by this?

Cloud Agility and Flexibility

Cloud Flexibility is Key to Corporate Cloud Adoption

Cloud Flexibility is Key to Corporate Cloud Adoption

Without beating around the Cloud too much, corporations and personal consumers are coming around to Cloud computing services because of how fast they can be deployed, rolled back and scaled to meet needs. For companies who need their solutions to be deployed and running at a moment’s notice, studies conducted by the IT research firm CDW and the Sand Hill Group both confirm the major factor in Cloud adoption in corporate America is quickness and scalability. As noted by Stephen Brat, GM of Cloud Solutions of CDW: