Cisco-sponsored study finds cloud adoption is going mainstream

Date: Wed, 10/19/2016 - 13:03 Source: Cisco

Yet only few organizations are maximizing value
Cisco-sponsored study finds cloud adoption is going mainstream

Scott Clark, Vice President, Advanced Services, Cisco

Image credited to Cisco

Cisco released the findings of a global study indicating that while cloud adoption continues to accelerate, few organizations are maximizing the value that cloud can offer. According to the study, nearly 68 percent of organizations are using cloud to help drive business outcomes, a 61 percent increase from last year's study. The increased cloud adoption is being fueled by cloud-native applications, including security and the Internet of Things (IoT) cloud-based solutions.
However, most organizations (69 percent) do not have mature* cloud strategies and only 3 percent have optimized cloud strategies generating superior business outcomes.
On average, the most “cloud advanced” organizations see an annual benefit per cloud-based application of $3 million in additional revenues and $1 million in cost savings.  These revenue increases have been largely the result of sales of new products and services, gaining new customers faster, or accelerated ability to sell into new markets.
The study also reveals that 95 percent of those leading organizations with optimized cloud strategies have built a hybrid IT environment that uses multiple private and public clouds based on economics, location and governance policies.
The Cisco-sponsored InfoBrief “Cloud Going Mainstream: All Are Trying, Some Are Benefiting; Few Are Maximing Value” was developed by International Data Corporation (IDC). The study is based on primary market research conducted with executives responsible for IT decisions in over 6,100 organizations across 31 countries that are successfully implementing private, public and hybrid clouds in their IT environments. This marks the second year of the study, nearly doubling last year’s sample size.
In the study, IDC identifies five levels of cloud maturity: ad hoc, opportunistic, repeatable, managed and optimized.

Hybrid Cloud Adoption by Country
Hybrid cloud adoption (public cloud and private cloud services) varies by country, with Korea and Japan among the countries with the greatest percentage of organizations using a mix of public cloud services and dedicated assets. The study notes the percentage of organizations with hybrid cloud adoption in the following countries:
45 percent United States
47 percent Latin America Region
46 percent UK
42 percent France
51 percent Germany                              
41 percent Australia
47 percent Canada
55 percent Korea
42 percent The Netherlands
54 percent Japan
52 percent China

According to the study, organizations face a number of obstacles to achieving greater cloud maturity, including capabilities and skills gaps, lack of a well-defined strategy and roadmap, legacy siloed organizational structures, and Information Technology/Line of Business (IT/LOB) misalignment.

Cisco Business Cloud Advisor Adoption Report  
Cisco is helping customers translate the findings of this study into personalized analysis and guidance. The Cisco Business Cloud Advisor Adoption Report allows organizations to complete a brief survey to determine their own cloud adoption level and associated business benefits relative to their industry peers—by industry, company size, and geography.

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