Here’s Why Corporations Made 2015 The Year of the Cloud

Here’s Why Corporations Made  The Year of the Cloud

It’s official. As it turns out, 2015 really was “the year of the cloud,” according to a study by Synergy Research Group. For the first time, the research team reported, enterprises started transitioning to cloud services and infrastructure at a rate that made them mainstream.

The $110 billion cloud industry’s growth rate reached 28 percent by the year’s end, the study revealed. The research was based on six key cloud services and infrastructure market segments, operator and vendor revenues. Public IaaS/PaaS services led the way, growing at a rate of 51 percent, followed closely by private and hybrid cloud infrastructure services, which grew at a rate of 45 percent.

Synergy went on to report that the pace of growth is starting to narrow the gap between traditional options and cloud services, although infrastructure hardware and software spending, at $60 billion for the period, still outpaces expenditures on cloud services growth at $30 billion.

Here’s what Synergy’s chief analyst John Dinsdale had to say about the cloud growth: “Cloud technologies are now generating massive revenues and high growth rates that will continue long into the future, making this an exciting time for IT vendors and service providers that focus on cloud.”

So, what’s driving cloud growth? Here are a few areas that have companies making the transition.

  1. Automatic software updates. With cloud computing, there is no need to maintain servers on your premises. Your time and resources are freed up because your suppliers keep up with your servers, ensuring software is regularly updated.
  2. Increased flexibility. Need to grow? Scale down? Cloud-based services can be quickly scaled to accommodate fluctuations in your business — giving you the ability to maintain a high level of flexibility. That type of flexibility is among the reasons why cloud services has been ranked as one of the top reasons for cloud adoption.
  3. Decreased expenses. Cloud computing eliminates the need for the costly hardware associated with on-premise options.
  4. Disaster recovery. Cloud computing can help companies with disaster recovery solutions, without the heavy investment. According to a study by the Aberdeen Group, small businesses are twice as likely as larger companies to have implemented cloud-based backup and recovery solutions that save time, avoid large up-front investment and roll up third-party expertise as part of the deal.
  5. Capital-expenditure Free. Cloud computing cuts out the high cost of hardware. You simply pay as you go and enjoy a subscription-based model that’s kind to your cash flow. Add to that the ease of setup and management and suddenly your scary, hairy IT project looks at lot friendlier. It’s never been easier to take the first step to cloud adoption.

About Tony Johnson

Innovative helps you balance your business requirements, service levels, staff and infrastructure to make your IT as effective as possible. Tony Johnson is Vice President of Operations at Innovative and has been helping clients optimize their IT spend and operations since 1983.

Leave a Reply

Innovative Integration can help you optimize your IT infrastructure. Request a Consultation