Gartner: IT Modernization Is Top Driver of Public Cloud Adoption
September 16, 2016

Pete Goldin
APMdigest

Share this

The worldwide public cloud services market is projected to grow 17.2 percent in 2016 to total $208.6 billion, up from $178 billion in 2015, according to Gartner, Inc.

The highest growth will come from cloud system infrastructure services (infrastructure as a service [IaaS]), which is projected to grow 42.8 percent in 2016.

Cloud application services (software as a service [SaaS]), one of the largest segments in the global cloud services market, is expected to grow 21.7 percent in 2016 to reach $38.9 billion.

"Growth of public cloud is supported by the fact that organizations are saving 14 percent of their budgets as an outcome of public cloud adoption, according to Gartner's 2015 cloud adoption survey," said Sid Nag, Research Director at Gartner. "However, the aspiration for using cloud services outpaces actual adoption. There's no question there is great appetite within organizations to use cloud services, but there are still challenges for organizations as they make the move to the cloud. Even with the high rate of predicted growth, a large number of organizations still have no current plans to use cloud services."

IT modernization is currently the top driver of public cloud adoption, followed by cost savings, innovation, agility and other benefits. The focus on IT modernization indicates a more sophisticated and strategic use of public cloud services. Not only are public cloud services being used to recognize the tactical benefits of cost savings and innovation, but they are also being used to establish a more modern IT environment — an environment that can serve as a strategic foundation for future applications and digital business processes.

Security and/or privacy concerns continue to be the top inhibitors to public cloud adoption, despite the strong security track record and increased transparency of leading cloud providers.

"Gartner's position on cloud security has been clear — public cloud services offered by the leading cloud providers are secure. The real security challenge is using public cloud services in a secure manner," said Ed Anderson, Research VP at Gartner. "More education is needed to help organizations overcome the hype associated with security concerns. This should be a key area of focus for providers in working with their clients to unlock the benefits of public cloud services."

Most organizations are already using a combination of cloud services from different cloud providers. While public cloud usage will continue to increase, the use of private cloud and hosted private cloud services is also expected to increase at least through 2017. The increased use of multiple public cloud providers, plus growth in various types of private cloud services, will create a multicloud environment in most enterprises and a need to coordinate cloud usage using hybrid scenarios.

Although hybrid cloud scenarios will dominate, there are many challenges that inhibit working hybrid cloud implementations. Organizations that are not planning to use hybrid cloud indicated a number of concerns, including: integration challenges, application incompatibilities, a lack of management tools, a lack of common APIs and a lack of vendor support.

"Of course in the case of hybrid cloud, these top concerns also highlight some of the top opportunities for providers," said Anderson. "We know that public cloud services will continue to grow. We also know that private cloud services (of various types) will become more widely used. Therefore, providers must focus on the top hybrid cloud challenges to be successful in meeting the growing demand for hybrid cloud solutions."

Share this

The Latest

October 20, 2021

Over three quarters (79%) of database professionals are now using either a paid-for or in-house monitoring tool, according to a new survey from Redgate Software ...

October 19, 2021

Gartner announced the top strategic technology trends that organizations need to explore in 2022. With CEOs and Boards striving to find growth through direct digital connections with customers, CIOs' priorities must reflect the same business imperatives, which run through each of Gartner's top strategic tech trends for 2022 ...

October 18, 2021

Distributed tracing has been growing in popularity as a primary tool for investigating performance issues in microservices systems. Our recent DevOps Pulse survey shows a 38% increase year-over-year in organizations' tracing use. Furthermore, 64% of those respondents who are not yet using tracing indicated plans to adopt it in the next two years ...

October 14, 2021

Businesses are embracing artificial intelligence (AI) technologies to improve network performance and security, according to a new State of AIOps Study, conducted by ZK Research and Masergy ...

October 13, 2021

What may have appeared to be a stopgap solution in the spring of 2020 is now clearly our new workplace reality: It's impossible to walk back so many of the developments in workflow we've seen since then. The question is no longer when we'll all get back to the office, but how the companies that are lagging in their technological ability to facilitate remote work can catch up ...

October 12, 2021

The pandemic accelerated organizations' journey to the cloud to enable agile, on-demand, flexible access to resources, helping them align with a digital business's dynamic needs. We heard from many of our customers at the start of lockdown last year, saying they had to shift to a remote work environment, seemingly overnight, and this effort was heavily cloud-reliant. However, blindly forging ahead can backfire ...

October 07, 2021

SmartBear recently released the results of its 2021 State of Software Quality | Testing survey. I doubt you'll be surprised to hear that a "lack of time" was reported as the number one challenge to doing more testing, especially as release frequencies continue to increase. However, it was disheartening to see that a lack of time was also the number one response when we asked people to identify the biggest blocker to professional development ...

October 06, 2021

The role of the CIO is evolving with an increased focus on unlocking customer connections through service innovation, according to the 2021 Global CIO Survey. The study reveals the shift in the role of the CIO with the majority of CIO respondents stating innovation, operational efficiency, and customer experience as their top priorities ...

October 05, 2021

The perception of IT support has dramatically improved thanks to the successful response of service desks to the pandemic, lockdowns and working from home, according to new research from the Service Desk Institute (SDI), sponsored by Sunrise Software ...

October 04, 2021

Is your company trying to use artificial intelligence (AI) for business purposes like sales and marketing, finance or customer experience? If not, why not? If so, has it struggled to start AI projects and get them to work effectively? ...