Risk
4/2/2010
09:52 PM
Connect Directly
Twitter
RSS
E-Mail
50%
50%

IT Spending On Cloud Ratcheting Up

A Sandhill Group survey shows enterprise interest in -- and IT spending on -- cloud computing accelerating over the next three years.

The weak economy and IT cost cutting appear to have been a primary driver of cloud computing over the last two years, but the report found those to be secondary reasons to go to the cloud. "Forty-nine percent of companies are driven to the cloud for business agility reasons, while only 46% are motivated by cost efficiency," the report states.

The ability to produce the software that supports a new product or service seems to happen faster in the cloud. A developer can produce iterative versions that deploy easily because they've been developed in the deployment environment, and they scale there without added work.

A chief architect at a petroleum company is quoted as saying: "I've seen 'skunkworks' projects where smart developers figure out something to do with the cloud over the weekend. They come in and show it to their boss and their boss is blown away because it took a tenth of the time and cost of what it would if done in the normal way... The cloud brings together these pockets of innovation in the company. We need that."

"Innovation is one of the key ingredients. Let's go out there and find new ways to get to market with new applications. It's a big driver," Pemmaraju said.

Nevertheless, the cloud remains an attractive alternative cost-wise. Interviewees didn't hesitate to describe the cloud in the report as "an order of magnitude cheaper than comparable on-premises solutions."

A different angle on the savings came from a CIO, quoted as saying cloud computing and on-premises computing are roughly equal in expense at the three-year mark. But cloud computing starts to pile up savings over the next few years because there is no hardware refresh involved at the end of three years. None of the interview subjects were named.

Another conclusion in the report is that many small businesses and some medium sized businesses consider the cloud to be a more secure form of computing than their own operations. The survey and followup interviews indicated small companies "know they don't have the security they need to have in their own environments. They consider the security of the leading cloud vendors to be far better than anything they could hope to have," Pemmaraju said.

Many companies will weigh their need to continue secure handling of certain kinds of data with their desire for lower cost and more agile cloud computing. The result, the report predicts, will be rapid adoption of hybrid cloud computing approaches, where some use is made of the public cloud in conjunction with internal operations.

"Both our qualitative interviews and survey data found little use of hybrid clouds today. However, our survey indicated the biggest growth will be in this area," the report concluded.

The Sandhill Group reports on major trends in computing for the investment community, such as the venture capitalists located along Sandhill Road in Menlo Park, every two years.

Previous
2 of 2
Next
Comment  | 
Print  | 
More Insights
Register for Dark Reading Newsletters
White Papers
Cartoon
Current Issue
Dark Reading Must Reads - September 25, 2014
Dark Reading's new Must Reads is a compendium of our best recent coverage of identity and access management. Learn about access control in the age of HTML5, how to improve authentication, why Active Directory is dead, and more.
Flash Poll
Video
Slideshows
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2003-1598
Published: 2014-10-01
SQL injection vulnerability in log.header.php in WordPress 0.7 and earlier allows remote attackers to execute arbitrary SQL commands via the posts variable.

CVE-2011-4624
Published: 2014-10-01
Cross-site scripting (XSS) vulnerability in facebook.php in the GRAND FlAGallery plugin (flash-album-gallery) before 1.57 for WordPress allows remote attackers to inject arbitrary web script or HTML via the i parameter.

CVE-2012-0811
Published: 2014-10-01
Multiple SQL injection vulnerabilities in Postfix Admin (aka postfixadmin) before 2.3.5 allow remote authenticated users to execute arbitrary SQL commands via (1) the pw parameter to the pacrypt function, when mysql_encrypt is configured, or (2) unspecified vectors that are used in backup files gene...

CVE-2014-2640
Published: 2014-10-01
Cross-site scripting (XSS) vulnerability in HP System Management Homepage (SMH) before 7.4 allows remote attackers to inject arbitrary web script or HTML via unspecified vectors.

CVE-2014-2641
Published: 2014-10-01
Cross-site request forgery (CSRF) vulnerability in HP System Management Homepage (SMH) before 7.4 allows remote authenticated users to hijack the authentication of unspecified victims via unknown vectors.

Best of the Web
Dark Reading Radio
Archived Dark Reading Radio
Chris Hadnagy, who hosts the annual Social Engineering Capture the Flag Contest at DEF CON, will discuss the latest trends attackers are using.