Cloud Computing Penetration into Enterprise IT Gaining Momentum

WaveLength/Winn Report Says Early Cloud Users and Planners Estimate 30% of IT will be Cloud-based by 2015

Today we release our new study, Five Key Themes in Enterprise Cloud Computing Migration. It discusses the changing Cloud market from a broad perspective and provides probably the first segmentation of what we call the Early Cloud Era.  It introduces the three segments, Pioneers, Planners, and Stragglers and looks at the market through this lens.  Specifically, it examines penetration of different service deployment models, drivers that encourage adoption, and concerns that limit it.  It also looks at enterprise projects before, during, and after Cloud deployment, as well as the role of the different vendors and channel partners in those enterprise IT Cloud computing deployments.

It’s worth saying again that this study reports from a broad perspective.  However, it is by no means exhaustive.  There is always more to say and the right recommendations to make, themselves highly dependent on the audience, the tech segment or the technology or telecom segment.  In other words, the same piece of data can mean something different to a security hardware company.   To that end, if our vast data set may answer a specific question anyone might have, we are happy to take a look.  Just let us know.

Five Key Themes in Enterprise Cloud Computing Migration is a joint effort.  WaveLength conducted the analysis and created the report.  We would like to thank our partner, Winn Technology Group, who did a fantastic job with data collection.  We are also thankful for the contributions from our friends and colleagues at Channel Navigators, LLC and Telecom Strategy Partners LLC.  We’d also like to thank graphics partner Beyond5280, who makes our work artistically shine.

Download the entire report here:


More than Half of US Large & Medium-sized Enterprises are, or Plan to Be, in the Cloud

According to our recent research, most medium and large enterprises are going to the Cloud.  About 33% of the sample is a current user and additional 8% are piloting it.  This group, known as Cloud Pioneers, is not composed of a group of just SaaS users, either.  To be considered a Cloud user, an enterprise had to be testing or using a Cloud model other than SaaS.  This included any kind of private or public cloud, be it Infrastructure-as-a-Service (IaaS) or Platform-as-a-Service (PaaS).  Furthermore, they also had to actually have people working on it.  Another 16.8% are planning for Cloud.  This group is aptly called the Cloud Planners.  The remaining 42.1% are the Cloud Stragglers, those organizations with no current Cloud plans.

Source: WaveLength Market Analytics/Winn, Five Key Themes, May 2011


Meet the Cloud Pioneers… and a Note about Security Limiting Cloud Adoption

Meet the Pioneers, the group of enterprises leading the way with Cloud adoption. They are distinguished from their colleagues, Cloud Planners and Cloud Stragglers in many ways.  In this post, we’ll keep it to security.  As the figure below show, when Cloud Pioneers prepare for Cloud deployment, tops on the list is upgrading security and implementing encryption.

Source: WaveLength Market Analytics/Winn, Five Key Themes on Enterprise Cloud Computing

For this reason, Pioneers are less concerned with security, as opposed to Stragglers, where security truly limits their adoption.  As you can see from the table below (click it for a larger view) that combines all the concerns we asked about, it is easily apparent.  The highest ranking for a security concern, which is “Reduced control/visibility for security” is 8th for Pioneers, tying with “Technology not yet proven.”  This is because Pioneer’s upgrade security prior to their Cloud deployment.  Because of these projects, for Pioneers, all security concerns rank in the bottom half of the list.   For Stragglers, it’s a different story.  Of their concerns, all security concerns we asked about rank in the top half.  After costs, lack of trusted third parties to help them, and the perception that it’s an unproven technology, security concerns are the real barrier for this group.  It all suggests the opportunity for security vendors to develop the market by easing  the fears of the mainstream market.



Source: WaveLength/Winn Five Key Themes in Enterprise Cloud Computing