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Scalability, Cost Drive Cloud Investments, Analysts Say

The concepts and benefits of using cloud computing in the workplace are becoming clearer to a large portion of the business world, even though some decision-makers remain slightly skeptical. For the most part, however, organizations are either using the cloud or intend to do so within the near future.

A new Frost & Sullivan report highlighted how businesses in the United States and the U.K. are deploying cloud technologies more often than ever, driven by the opportunities to leverage cost-effective and highly scalable IT architectures. Although decision-makers throughout other regions may be less inclined to use the cloud, these uncertainties generally stem from rapidly diminishing security concerns.

Other firms are simply overwhelmed by the vast cloud landscape that is filled with numerous options, vendors, and technologies, analysts noted. Nevertheless, the majority of companies are taking steps toward the cloud to gain a competitive advantage.

"Organizations are willing to adapt to evolving consumer needs in order to strengthen their position in the market, and cloud systems are viewed as a catalyst that could enable positive change and impact external customers," said Shuba Ramkumar, research analyst at Frost & Sullivan.

Experts said partnering with experienced and trusted vendors will be critical to reducing risk. Executives should look for providers that are able to maintain a healthy relationship with a company and can customize solutions to align with long-term business strategies, Ramkumar asserted.

A separate Gartner report echoed the expanding cloud landscape and how various regions have different adoption rates. Still, analysts believe that the global public cloud services market will generate $131 billion in revenue in 2013, with cloud infrastructure technologies gaining the most momentum.

The need for scalable architectures is driving cloud adoption rates for several reasons, including the fact that organizations are embracing Big Data strategies that require the use of flexible storage environments. Meanwhile, firms that are adopting mobile strategies are recognizing the benefits of implementing a unified infrastructure that can support anytime connectivity to virtually all types of computing platforms.

There is no doubt that the cloud computing landscape is continuing to grow. In the coming years, any lingering concerns about the technology will diminish as decision-makers become more aware of the financial and operational advantages associated with launching the cloud in the workplace. By partnering with a trusted service provider, organizations of all sizes can adopt innovative technologies that level the playing field and give them an edge.

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