02/03/2015

Why cloud is a reality

Are you still in doubt about moving your business to the cloud? Do you believe that the cloud isn’t ready yet, that it is too soon? Well, with the Delaware Consulting Cloud Taskforce, we think we can change your mind and we’re not alone on this. According to Gartner’s Hype Cycle, cloud computing has reached a maturity that leads it into a productive phase. So stay with me and I will explain you why cloud is a reality.

Predictions

Recently, Gartner highlighted the top 10 technology trends that will be strategic for most organizations in 2015. Already for the 7th year in a row, Gartner lists cloud computing in its top 10 of technology trends. Not to mention that Gartner’s Hype Cycle shows that cloud computing is over its hype: the time of overinflated expectations has passed. Cloud computing has reached a maturity that leads it into a productive phase. Additionally, Gartner pointed out that by 2016, 60 percent of businesses will not consider the cloud as a significant factor when investing, because they will consider it the expected norm.

Facts & numbers

According to Techaisle, a global market research organization, cloud adoption within US small and medium businesses is currently 89 percent and will reach 96 percent in 2015. Simultaneously, Eurostat (European Commission statistics) reports that in 2014 almost twice as many firms used public cloud servers as private cloud servers. Moreover, already half of EU cloud adopters used cloud computing for advanced cloud services relating to financial and accounting software applications, CRM or business applications.

Huge cloud players invest gigantic amounts of money in their cloud offerings. These investments started in 2005 according to Gartner. By 2012, Google had already spent $20.9 billion on its cloud infrastructure, closely followed by Microsoft and Amazon with roughly $18 billion and $12 billion respectively.

Advantages

Because of these intensive investments, IT (computing resources, mail, storage,…) has become a commodity for all of us. The economy of scale allows for a lower total cost of ownership for small and big companies. On top of that, cloud providers have the best IT knowledge in-house. Technological trends are inherently followed every single day without any impact on your organization. Buying outdated library books when you can subscribe to an online encyclopedia seems a bit odd, right?

Strong business model

Accessibility anywhere and anytime, omnipresence and economy of scale are the key ingredients of the cloud’s strong computing model. Technologically, the Software as a Service (SaaS) cloud model is the same as the well-known Application Service Provider model: you can use software over the internet without having to buy the necessary software and hardware. But the big difference can be found in the computing model. Not to mention that times have changed: while a few years ago, CEOs and CFOs were kind of sceptic, today they are the demanding party! SaaS products are being acquired without consulting the IT department, which is also a huge risk. This topic will be dealt with more in depth in one of our next blog posts.

“It went up! It went up to the cloud!

And you can’t get it down?

Nobody understands the cloud!”

New opportunities

Big Data, The Internet of Things, social media, mobile applications, … Today’s favorite buzzwords probably don’t sound unfamiliar to you. All these hypes can hardly exist without the cloud. And the business is following rapidly: consumers have a device that fits every scenario and are able to access the same content at any time on their preferred device. Isn’t it pleasant to forget your favorite CD at home and just be able to stream it in your car? Companies can also take advantage of these technologies that originate in the consumer space, rather than in the IT enterprise sector. Examples are the reduced time-to-market, IT consumerization, mobility,…

Nobody understands the cloud, it’s a mystery!

I don’t know if you’ve heard about the comedy last year where an intimate video tape got backed up to the cloud by mistake and the couple didn’t know how to get it down… Well, leave that mystery cloud for the movies. In reality, the cloud is the next IT computing model, that thanks to its large advantages for small and large companies, will gradually replace most of the traditional IT systems . It’s why we maybe should call it postmodern IT.

The cloud: it’s here today, it’s real and it is ready to host your production environment for you. Is it itching to get started? To know more? To see it at work? Contact the Delaware Consulting Cloud Taskforce to get started right away!

Our Cloud Taskforce will publish a series of blog posts. Next up: cloud business drivers and risks.