Gartner: IT Modernization Is Top Driver of Public Cloud Adoption
September 16, 2016

Pete Goldin
APMdigest

Share this

The worldwide public cloud services market is projected to grow 17.2 percent in 2016 to total $208.6 billion, up from $178 billion in 2015, according to Gartner, Inc.

The highest growth will come from cloud system infrastructure services (infrastructure as a service [IaaS]), which is projected to grow 42.8 percent in 2016.

Cloud application services (software as a service [SaaS]), one of the largest segments in the global cloud services market, is expected to grow 21.7 percent in 2016 to reach $38.9 billion.

"Growth of public cloud is supported by the fact that organizations are saving 14 percent of their budgets as an outcome of public cloud adoption, according to Gartner's 2015 cloud adoption survey," said Sid Nag, Research Director at Gartner. "However, the aspiration for using cloud services outpaces actual adoption. There's no question there is great appetite within organizations to use cloud services, but there are still challenges for organizations as they make the move to the cloud. Even with the high rate of predicted growth, a large number of organizations still have no current plans to use cloud services."

IT modernization is currently the top driver of public cloud adoption, followed by cost savings, innovation, agility and other benefits. The focus on IT modernization indicates a more sophisticated and strategic use of public cloud services. Not only are public cloud services being used to recognize the tactical benefits of cost savings and innovation, but they are also being used to establish a more modern IT environment — an environment that can serve as a strategic foundation for future applications and digital business processes.

Security and/or privacy concerns continue to be the top inhibitors to public cloud adoption, despite the strong security track record and increased transparency of leading cloud providers.

"Gartner's position on cloud security has been clear — public cloud services offered by the leading cloud providers are secure. The real security challenge is using public cloud services in a secure manner," said Ed Anderson, Research VP at Gartner. "More education is needed to help organizations overcome the hype associated with security concerns. This should be a key area of focus for providers in working with their clients to unlock the benefits of public cloud services."

Most organizations are already using a combination of cloud services from different cloud providers. While public cloud usage will continue to increase, the use of private cloud and hosted private cloud services is also expected to increase at least through 2017. The increased use of multiple public cloud providers, plus growth in various types of private cloud services, will create a multicloud environment in most enterprises and a need to coordinate cloud usage using hybrid scenarios.

Although hybrid cloud scenarios will dominate, there are many challenges that inhibit working hybrid cloud implementations. Organizations that are not planning to use hybrid cloud indicated a number of concerns, including: integration challenges, application incompatibilities, a lack of management tools, a lack of common APIs and a lack of vendor support.

"Of course in the case of hybrid cloud, these top concerns also highlight some of the top opportunities for providers," said Anderson. "We know that public cloud services will continue to grow. We also know that private cloud services (of various types) will become more widely used. Therefore, providers must focus on the top hybrid cloud challenges to be successful in meeting the growing demand for hybrid cloud solutions."

Share this

The Latest

March 24, 2017

A growing IT delivery gap is slowing down the majority of the businesses surveyed and directly putting revenue at risk, according to MuleSoft's 2017 Connectivity Benchmark Report on digital transformation initiatives and the business impact of APIs ...

March 23, 2017

Why containers are growing in popularity is no surprise — they’re extremely easy to spin up or down, but come with an unforeseen issue. Without the right foresight, DevOps and IT teams may lose a lot of visibility into these containers resulting in operational blind spots and even more haystacks to find the presumptive performance issue needle ...

March 22, 2017

Much emphasis is placed on servers and storage when discussing Application Performance, mainly because the application lives on a server and uses storage. However, the network has considerable importance, certainly in the case of WANs where there are ways of speeding up the transmission of data of a network ...

March 21, 2017

The majority of IT executives believe investment in IT Service Management (ITSM) is important to gain the agility needed to compete in an era of global, cross-industry disruption and digital transformation, according to Delivering Value to Today’s Digital Enterprise: The State of IT Service Management 2017, a report by BMC, conducted in association with Forbes ...

March 17, 2017

Let’s say your company has examined all the potential pros and cons, and moved your critical business applications to the cloud. The advertised benefits of the cloud seem like they’ll work out great. And in many ways, life is easier for you now. But as often happens when things seem too good to be true, reality has a way of kicking in to reveal just exactly how many things can go wrong with your cloud setup – things that can directly impact your business ...

March 16, 2017

IT leadership is more driven to be innovative than ever, but also more in need of justifying costs and showing value than ever. Combining the two is no mean feat, especially when individual technologies are put forward as the single tantalizing answer ...

March 15, 2017

The move to Citrix 7.X is in full swing. This has improved the centralizing of Management and reduction of costs, but End User Experience is becoming top of the business objectives list. However, delivering that is not something to be considered after the upgrade ...

March 14, 2017

As organizations understand the findings of the Cyber Monday Web Performance Index and look to improve their site performance for the next Cyber Monday shopping day, I wanted to offer a few recommendations to help any organization improve in 2017 ...

March 13, 2017

Online retailers stand to make a lot of money on Cyber Monday as long as their infrastructure can keep up with customers. If your company's site goes offline or substantially slows down, you're going to lose sales. And even top ecommerce sites experience performance or stability issues at peak loads, like Cyber Monday, according to Apica's Cyber Monday Web Performance Index ...

March 10, 2017

Applications and infrastructure are being deployed and commissioned at a faster rate than ever before, the number of tools it takes to effectively manage these services is multiplying, and the expectations placed on IT to ensure customer satisfaction is increasing, according to The State of Monitoring 2017 report from BigPanda ...