Trends in adoption of cloud services

Nov 23, 2020

So what is happening out there in the world of Infrastructure as a Service and Hybrid Cloud adoption? Well in short it’s growing, and growing fast.  In a recent report from the 451 Alliance it is clear that the migration of applications, workloads and data to cloud and 3rdparty hosted environments is on the rise.

Half of companies surveyed spend less than 25% of their total budget on IaaS/PaaS, however a whopping 22% of companies are now spending over 50% of their total budget on these line items, followed by another 7% that spend more than 75%! That’s a whole lot of ICT budgets being spent in this space.

Almost three quarters of enterprises plan to increase spending on cloud hosted services over the next 12 months compared to 6% planning to spend less. That’s a significant number of organisations that are seeing enough benefits to keep investing more.

So what about Hybrid Cloud models? It’s a similar story here with just shy of 75% of companies having either already implemented or in the process of implementing Hybrid Cloud deployments, what’s interesting here is that only 39% actually have a formalized Hybrid Cloud Strategy - which suggests that this is becoming run rate stuff for most orgs.

So whats driving this push to the cloud?  The top 10 reasons (in order) given by companies have been listed as:

1.       Faster response to business needs

2.       Reduced IT capital expenses

3.       Better ability to deploy IT resources where needed

4.       Faster time to market for new products/services/projects

5.       Reduced IT operating expenses

6.       Better security/data protection

7.       Improved line-of-business productivity

8.       Improved application developer productivity

9.       Better ability to use data to drive the business

10.   Improved customer/user satisfaction

These reasons largely align with what we hear from our clients here in New Zealand with the need to focus their people on higher value works and spending less time “keeping the lights on”.

Interested in discussing how vBridge can help you achieve more for your business and say good bye to hardware upgrades, patching, capacity & performance issues? Drop us a line and lets chat -

Todd Cassie

Todd is the CEO of vBridge - probably the best cloud compute provider in NZ!