Industry News from Cloud IT

Thinking About a Transition to Cloud? You'd Better Get Moving

February 16, 2016

The big buzzword of 2015 involved “cloud” and the idea of moving operations there. New numbers just released show that movement might well continue into the New Year.

According to International Data Corp’s (IDC) “Worldwide Quarterly Cloud IT Infrastructure Tracker” – a regular update on where the cloud is and where it’s going -- vendor revenue from sales of infrastructure products for cloud IT grew by 23.0 percent year over year to $7.6 billion for the third quarter of 2015. Those infrastructure products include servers, storage and Ethernet switches, and show just how widespread this movement is becoming.


"IDC continues to see healthy double-digit growth in cloud IT deployments in the market, with an increasing preference for public cloud infrastructure," noted Kuba Stolarski, Research Director for Computing Hardware and Platforms at IDC, in commenting on the findings. "Customers are modernizing their infrastructures, having a progressively larger number of viable options for cloud deployments either on or off premises. These customers depend on a mix of as-a-service offerings and traditional infrastructure to help meet the IT transformation requirements of their organizations.”

The numbers are good news for those directly involved in expanding the cloud, and they’re not just confined to the U.S. In fact, the findings showed vendor revenues from cloud IT infrastructure sales grew fastest in Japan at 47.1 percent year over year, followed by the rest of Asia/Pacific at 35.3 percent, Western Europe at 22.1 percent, Canada at 22.0 percent, and the United States at a still-respectable 20.1 percent.

“As public cloud offerings continue to evolve and improve in reliability and security, customers are becoming more comfortable with the flexibility that they get by deploying certain workloads in these elastic environments,” IDC’s Stolarski added.

The trend is best confirmed by another survey, this one showing the top priority for nonprofits was to move their operations to the cloud as well. The survey conducted by Capital One Bank showed that 29 percent of respondents had plans for a new cloud transition. Those numbers were followed by 25 percent indicating a website upgrade was in the cards, and 17 percent looking to integrate CRM tools.

Clearly the cloud is here to stay, and only growing larger. Those who wait on the sidelines might well get left behind.




Edited by Rory J. Thompson

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