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Enterprise Hybrid Cloud Configurations Gain Momentum

Most of the large IT systems vendors have shifted their focus to cloud computing. Meanwhile, more enterprise CIOs have adopted a cloud-first mindset -- that's an approach where a cloud solution is primarily considered for new workload deployments, whenever possible.

By and large, outside forces are pushing for IT infrastructure to support digital transformation projects. From the line of business (LoB) leader's perspective, the motivation is compelling. Cloud is being driven by a desire to become more agile and innovative, with the goal to create a competitive advantage.

It's a key point that should always be top of mind. This market transition is less about the underlying technology capabilities, it's more about applying technology to achieve bold strategic business outcomes.

Cloud Computing Market Development

According to the latest worldwide market study by 451 Research, 41 percent of all enterprise IT workloads are now in some type of public or private cloud. By mid-2018, that will rise to 60 percent of all workloads.

Among the various types of cloud deployment models, enterprises are most likely to use on-premises private cloud and software as a service (SaaS), each accounting for 14 percent of all applications. This would explain why industry analysts say that the ongoing adoption of Hybrid Cloud scenarios are anticipated.

That being said, survey respondents indicate usage of on-premises private cloud will remain flat while SaaS is expected to grow sharply to nearly one-quarter (23 percent) of all enterprise workloads by mid-2018.

While infrastructure as a service (IaaS) has many early adopters in the enterprise, 451 Research notes that just 6 percent of enterprise workloads are currently running on IaaS -- it's the smallest portion for any public or private cloud type.

This would indicate the few enterprises have, so far, moved beyond proof-of-concept deployments. However, the survey findings also reveal that IaaS is likely to see the highest growth, with usage predicted to double to 12 percent of workloads over the next two years.

Cloud usage is currently strongest in categories that have traditionally been drivers of IaaS adoption. In fact, 14 percent of web/media and 8 percent of application development now run on cloud computing IaaS today.

451 Research predicts strong growth in critical enterprise workload categories -- such as big data analytics and business applications. Moreover, usage is predicted to more than double, from 7 percent to 16 percent for data workloads, and from 4 percent to 9 percent for business applications.

Cloud Computing Market Outlook

"The predicted doubling of IaaS usage is the highest growth expectation for any type of cloud and points to significant revenue potential for vendors in this space," said Andrew Reichman, research director of 451 Research.

According to the 451 Research assessment, cloud-first strategy is common among enterprises -- with 38 percent of respondents indicating that they have adopted such a policy. The study also reveals that the most common triggers for increased cloud computing usage include business-related events -- such as mergers, acquisitions and divestitures.

451 Research believes the vendor battle for cloud services domination is by no means over. They say the cloud usage growth points to greater opportunities -- i.e. new hybrid cloud services-- for many kinds of vendors to expand their presence as the market continues to expand.

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