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Cloud Adoption Let the Facts represent themselves

The Cloud Industry Forum exists to drive best practice in cloud services delivery and to teach and inform the market on related issues. A core aspect of our activity is to conduct independent marketing research to supply clarity and transparency on key trends.

The latest (of 3) research projects conducted over 18 months and across 250 UK-based organizations has just been completed and therefore the highlights are as follows:

61 percent of the organizations surveyed are currently formally using a minimum of one Cloud-based service, with a 92 percent satisfaction level with their experience.

This adoption figure represents a rise of twenty-seven percent since the first research was last conducted in January 2011. weakened, adoption in larger organizations is most prevalent, standing at 68 percent, with adoption in organizations with fewer than 20 employees standing at just over half (52 percent). This strikes a contrast to the previous research in Veterans' Day, which found no discernible correlation between the dimensions of an organization and Cloud adoption, although it does reflect an identical position of Enterprise leadership that was seen originally seen at the start of 2011.

The findings reveal little disparity between the public sector (62 percent) and personal sector (61 percent) adoption. The last research however found that the general public sector lagged the private – 49 percent and 56 percent respectively – pointing to a dramatic increase in public sector cloud adoption.

In terms of future adoption, of the 39% not using Cloud services today, around one in four decide to do so within the coming year. Organizations that don't use Cloud and haven't any concrete plans too are positive/not closed to the thought. This roughly reflects the last survey where 17 percent said: “Yes” and 59 percent said, “Possibly”. weakened by sector and size, public sector organizations and SMEs appear to be the foremost dynamic sectors for growth within the next 12 months, with 34 percent and 30 percent respectively.

The research clearly demonstrates a solid increase in Cloud adoption within the UK and confirms that enthusiasm for Cloud services remains strong. Although there are increases in adoption across the board, the general public sector has seen the foremost considerable growth, which, given the recent Government interest in Cloud, should come as little surprise. during a departure from our previous research, enterprises of 200 employees or more have leaped before smaller organizations in terms of Cloud adoption.

Just over three quarters (76 percent) of respondents currently using Cloud services expect to extend their use over the subsequent 12 months, slightly up from the previous figure, which stood at 73 percent. Email services, collaboration services, data storage services, and data back-up services emerged because the areas presumably to profit from this expected increase.

The research also continues to reflect that the first reason for the initial adoption of cloud services is that the flexible model of delivery (71 percent), also as scalability (66 percent), and therefore the low cost of adoption (58 percent). once more operational cost savings were not seen because the major driver, however, it's increasingly important to the bulk of respondents (52 percent).

Another aspect of cloud adoption is knowing the processes and assistance needed. it had been noteworthy that 59% of organizations that bought cloud services administered an attempt before they entered into a contract. Furthermore, only 16% of organizations implemented the answer themselves, whilst 50% required specific assistance from the CSP and therefore the balance used third-party specialist services. Clearly, an implementation/migrations services capability and try-before-you-buy capabilities are details for differentiation within the market.

As the number of cloud adopters increases, so too does the amount of Cloud Service Providers (CSPs) and repair models within the market, leading to a various and sophisticated supply chain. information technology degree Many established suppliers have altered their business models to incorporate Cloud Services within their portfolio; 66 percent of end-users have expressed an increasing expectation of self-service in light of the new service models enabled by Cloud Computing, and a replacement breed of Cloud brokerages and aggregators are forming to supply commercial guidance and one point of contact to customers.

Whether buying direct online or via a 3rd party it's essential that an organization can establish confidence (i.e. trust) within the Service Provider/s in order that they will be ultimately confident in both their expectations; within the nature of service provided; the responsibilities of the parties, and, the important issues to think about in entering, managing, and ultimately exiting a contract.

Invalidation of CIF’s certified Code of Practice, 78 percent of organizations now using or getting to use, Cloud services see value in working with a Cloud Service Provider (CSP) that has signed up to an industry Code of Practice.

So, in short, the united kingdom cloud market is in a healthy state, both in terms of adoption and satisfaction.

To get a replica of the complete 2012-2013 UK Cloud Adoption Research Results which can be published during a free white book, please subscribe to our updates at www.cloudindustryforum.org

Cloud within the mainstream

By Jon Smith, e-Marketing Specialist for Insight Cloud

In the world of IT, all we hear about lately is “The Cloud” somehow this has become the topic of device chatter amongst IT managers. once we check out the statistics it's not surprising why CRN predicting that SME spending on cloud computing alone would reach $100Bn by 2014 and Gartner claim that the whole Cloud market is going to be worth $150Bn by 2013.

The question is why is cloud suddenly the recent topic on everyone’s lips? Well during a time of economic uncertainty especially in Europe cloud spending is growing significantly quicker than the other sort of IT spending. the rationale for this is the value savings that implementing a cloud solution brings businesses, significant savings are made on hardware, maintenance, and therefore the time of your IT department.

A significant amount of an IT department's time is haunted by hardware maintenance. one among the most drainers of your time is software installation which is not any longer necessary when sourcing programs from the cloud. Cloud computing may be additionally considered a green technology which is a major consideration for several businesses especially those seeking or holding an ISO 14:001 accreditation.

The sudden interest in the cloud is surprising considering cloud applications are available for quite a while. Gmail is actually a cloud email service first launched in 2005 and Hotmail has been around since 1996. With time comes market saturation and this is often things we’re facing within the UK with many businesses offering cloud services including Rackspace, IBM, Dell, Insight, Joyent, virtual DCS, firehose, and Sleek Networks.

Consumer Market

What is really interesting at the instant is how cloud services and apps are getting used by consumers not just for email except for storage, backup, and even potentially disaster recovery which is historically employed by businesses.

One of the foremost obvious examples is dropbox which may be used for backup, storage, and disaster recovery. Dropbox allows consumers to store files online then access them from any location whether that be music, photos, or important documents. With a coffee cost users can securely save their data knowing that whatever happens, it'll be accessible.

Another example is that the cloud music service, Spotify. When it first launched it had been revolutionary because it gave consumers access to Music from any location and now with the Spotify mobile app they need to create a cloud experience that can't be rivaled.

Why has this happened? Why have cloud services all of a sudden exploded into the mainstream? One reason has got to be the increase of the smartphone, consistent with Kantar Worldpanel ComTech smartphone adoption within the UK is now over 50%.

Consumer wants and wishes have now changed they expect to be ready to access information and entertainment on the go and this is often now possible. Smartphones and tablets have given consumers more freedom when it involves accessing information.

the future of cloud

Since the cloud has now become a mainstream service subsequent question is what is going to the longer-term hold for Cloud Computing? because the industry continues to grow and starts to mature we’re expecting the value of cloud services to decrease significantly especially as more businesses start offering a cloud solution and therefore the market becomes more competitive.

We also expect to ascertain more cloud services become available especially for consumers. At the instant the most proposition for consumers revolves around personal storage but because the industry develops we envisage more complicated cloud services becoming available to suit changing consumer needs.

Businesses who are within the unique position of offering a business and consumer cloud proposition really are in a position to require advantage of the changing marketplace but the question is will they're going to be ready to keep it up?

How cloud providers will help data center operators increase customer conversion

Like any company operating in an industry closely associated with technology development, data center operators regularly need to re-invent themselves, the way they operate, and the way they service customers. There has been no greater disruptive technology for data center operators in recent years than the arrival of cloud computing.

On the face of it, rapidly increasing computing capacity requirements would appear sort of a straight win for data center operators however the particular situation is way more complex. A revolution is occurring within the customer base of knowledge center operators, subsequent few years will represent an “adapt or die” change for incumbent providers of knowledge center space.

Where did all the purchasers go?

A significant change is already underway amongst the customer bases of leading data center providers. The move to co-location by many companies started 10-15 years ago and continued to collect pace. The maturing of virtualization technologies successively made companies’ physical infrastructure deployments in data centers far more flexible and useful. Now the newest technology wave is hitting the tenants of knowledge centers; cloud computing.

The big difference with the newest technology transformation is that, within the case of public cloud, companies stop purchasing power and space from a knowledge center operator – and instead buy computing resources from a public cloud provider. Essentially the cloud provider becomes an intermediary between the top customer and therefore the data center provider if they use an external data center provider in the least.

As the adoption of cloud computing accelerates, on a business as was the common basis, data center providers are increasingly getting to see customers failing to extend existing space and – over time – run down legacy deployments. this is often a serious threat to the future revenues of the info center operator.

We are definitely an honest few years faraway from the purpose where the bulk of computing resources are purchased through cloud delivery models instead of directly through in-house dedicated hardware however the trajectory is already clear. Historically such shifts in technology have attended accelerate faster than people anticipate.

Private cloud: A False Dawn

Not all cloud computing means customers moving faraway from an immediate relationship with a knowledge center provider. Private cloud deployments do keep companies owning their own hardware and thus are less disruptive to the customer base than public clouds. it's however clear that non-public cloud may be a transitional technology. As the public cloud is maturing, the boundaries that were previously understood for public clouds are being pushed back leaving the uncontested territory for personal cloud deployments shrinking year on year.

Fundamentally private clouds fail to deal with a number of the foremost powerful benefits of using public clouds: elasticity and agility.

Private cloud deployment isn't elastic, companies therefore still got to provision for peak load and suffer from under-utilization of their physical infrastructure. Yes private clouds can enable companies to more efficiently utilize their infrastructure through virtualization but the generally fixed capacity constraint still exists.

Private clouds also offer limited agility for companies. Provisioning, procurement, and maintenance are all still in-house responsibilities and for the foremost part, non-core to companies’ key strengths. The private cloud won't, therefore, be a gentle long-term equilibrium for company infrastructure but a transitional step to wider adoption of the public cloud. The private cloud has introduced companies to the powers of virtualization but fails to focus companies around their core business strengths and has many limitations.

Hybrid Cloud is going to be pivotal

The reality is that each one but startups from recent years has legacy infrastructure and systems. For that reason, public cloud adoption will still gather pace but the in-house infrastructure is here to remain for an honest few years yet. technology credit union Hybrid cloud deployments, therefore, offer customers how to realize a number of the advantages of public cloud whilst utilizing existing investments privately cloud and dedicated infrastructure.

For this reason, hybrid cloud will become the dominant deployment model for many companies over the subsequent 3-5 years. Once deployed it's likely that future growth will come from the general public cloud side of the equation because the efficiencies and benefits shine through. Replacement cycles are going to be the crunch points where existing co-location space is downgraded and computing resources within the public cloud are upgraded.

The Customer Base of the Future:

Hybrid cloud deployments will become increasingly the norm within the coming years with public cloud provisioning relentlessly increasing its percentage of overall computing resources under management over time.

In the not too distant future, the public cloud will therefore represent the majority of computing infrastructure. For the info center operator of today, this suggests that the bulk of current customers will not be customers in five years' time. The paradox is therefore that, whilst data center providers see robust growth today, as the adoption of public cloud increases, that growth will slow and reverse quite rapidly.

Successful data center operators will therefore be those which will safely navigate this fundamental realignment in their customer bases.

Datacenter operators can however embrace this alteration and switch a big threat into a serious opportunity…

Keep it Under One Roof

As companies become increasingly conscious of hybrid cloud and eventually more pure public cloud deployments, they're becoming increasingly discriminative about this aspect of their hosting when choosing data center locations or renewing existing deployments. the power of knowledge centers to supply effective coordination of personal in-house and public cloud infrastructure will become a critical success factor.

Currently, most data centers don't offer public cloud hosting as a part of the sales process considering it as a pure threat to the potential sale. By partnering with cloud providers who don't wish to run their own data centers themselves, data center operators can provide a really compelling solution to potential customers. Customers currently are often comparing in-house solutions with public cloud solutions. a knowledge center operator that will quote for both deployment types is in a very strong position indeed, especially if both deployments are within their own data centers. Without such an option, if the customer decides on public cloud deployment, the prospect is lost to a public cloud vendor who likely doesn’t utilize that data center operator's services.

A data center operator that will offer a public cloud within its four walls and truly offer private, hybrid and public cloud deployments as a part of its sales process will significantly increase customer conversion rates and thus revenue growth. the chance exists to make tight integration with the partner public cloud provider allowing secure connectivity between public and personal deployments at low cost.

As customers transition faraway from their own dedicated infrastructure into hybrid then more public cloud deployments, the info center operator will still see revenue growth by having all those deployment options hosted within its environment.

The explosion of cloud computing and cloud-delivered services will drive overall computing capacity requirements over the subsequent decade. information technology degrees

 Datacenter operators that employ strategically with the proper public cloud vendors will reap the advantages of that growth. ow cloud providers will help data center operators increase customer conversion