4 top reasons businesses adopt hybrid cloud

Share this post:

The latest IBM Institute for Business Value (IBV) study, “Tailoring hybrid cloud,” confirms that organizations are increasingly turning to hybrid clouds to pursue new customers, reduce technology costs, access remote capabilities and facilitate innovation.

In fact, the study found that the four top reasons organizations are adopting hybrid clouds are to keep costs down while differentiating themselves in terms of operational efficiency, customer satisfaction and innovation.

Question 13 hybrid cloud

Here’s why executives found those four things so important:

Cut costs

More than half (54 percent) of executives surveyed cited the most popular reason for implementing hybrid cloud: to reduce the total cost of technology ownership. Hybrid clouds can cut costs by taking advantage of the economies of scale that cloud data centers provide. Data centers offer lower costs for hardware, power, facility upkeep and infrastructure staffing. Instead of locking up funds in soon-to-be outmoded capital equipment, cash generated from business success can be reinvested directly into near-term profit growth.

Furthermore, when deciding which workloads should be moved to cloud, more than half of surveyed executives identified cost as their most important factor.

Question 14 hybrid cloud

Improve operational efficiency

Tied for the second most popular reason for adopting hybrid cloud, operational efficiency was cited by 42 percent of respondents. Cloud enables organizations to quickly provision resources across an entire ecosystem to rapidly assemble tailor-made solutions for critical business needs. This can greatly reduce time spent on problem solving while enhancing the agility of enterprises in responding to constantly shifting market demands.

In the realm of IT, cloud enables operational efficiencies by optimizing the latest infrastructure, middleware and apps, rather than making do with subpar legacy systems.  For example, during online financial transaction processing, the latest third-party cloud-based API service can be plugged in to verify user identity.

Enhance customer engagement

Cloud’s agile attributes enable faster time to market for new products and services to attract and delight customers. For example, retailers can use cloud to tempt consumers with tailored promotions customized to their unique buying behaviors. Healthcare providers can address patient concerns any time with virtual medical assistance. Insurance companies can become trusted risk managers by warning policyholders of incoming destructive weather and recommend preventive actions to proactively avoid insurance claims.

Moving to a software-as-a-service (SaaS) model helps organizations implement market-leading solutions quickly with minimal impact to existing infrastructure. The survey found that customer support is the top area that two-thirds of executives are targeting migrating to a SaaS model within two years.

Question 23 hybrid cloud

Boost innovation

Cloud adoption fosters innovation because it can transcend geographic, industrial, organizational and operational barriers. Cloud accelerates innovation by enabling quick prototyping of new ideas for fast experimentation.

Astoundingly, at least 90 percent of executives surveyed said their most successful cloud initiatives had already significantly or moderately achieved expansion into new industries, creation of new revenue streams, and invention of new business models.

Clearly, cloud has evolved from a technological platform to an integral part of business enablement.

Question 19 hybrid cloud

To get started with hybrid cloud, business leaders can ask these questions:

  • How strategically would you be using hybrid cloud?
  • What is the optimal mix of cloud and on-premises IT?
  • How effectively are you already scaling your business using cloud?

For more findings on how hybrid cloud can answer an enterprise’s unique needs, including more recommendations for getting started, read “Tailoring hybrid cloud: Designing the right mix for innovation, efficiency and growth.”

Add Comment
No Comments

Leave a Reply

Your email address will not be published.Required fields are marked *

More Hybrid stories

How to build more responsive apps with Reactive Platform

The application landscape has evolved. Users expect responsive applications and will not tolerate failure. Customers will delete slow apps. With applications becoming more complex, there are also more opportunities for failure. Launching a killer app or going viral can be a huge win, but only so long as the application infrastructure can keep up. A […]

Continue reading

The multicloud era is here. Is your team ready?

The multicloud era has arrived. Today, 8 out of 10 businesses rely on multiple clouds to meet their IT needs, with 71 percent using more than three. IBM Cloud Private is designed to help organizations thrive in this new multicloud world. Your team can now enjoy the benefits of public cloud with an on-premise, private […]

Continue reading

IBM says “hej” to Copenhagen with its 10th global Cloud Garage

If 2017 was any indication, this is a pivotal point for disruption in the cloud. Disruptors are reinventing business processes and leading their industries with digital transformations.  Adopting real-time strategies, DevOps methodologies, data-driven decision making, and innovative technology evens the playing field.  All of that requires transformation. Enterprises are looking to innovate rapidly and transform […]

Continue reading