As cloud computing has now become a prominent IT trend, Oxford Economics recently commenced a study to get a global snapshot of how organizations are using cloud. With help of IBM, Oxford Economics surveyed more than 800 cloud decision makers and users across the world for its report: “Under cloud cover: How leaders are accelerating competitive differentiation”. According to the report, cloud’s strategic importance to busi¬ness users is expected to double from 34 percent to 72 percent over the next three years. The study categorized survey respondents into the following groups based on their level of cloud adoption and the competitive advantage realized by them due to cloud adoption:
Pacesetters have deployed cloud on a broad scale and are gaining competitive advantage over their rivals through cloud.
Challengers are on par with Pacesetters in achieving greater efficiency through cloud, but still lag on differentiation and market responsiveness.
- Chasers are more cautious about cloud. They’re in early stages of adoption and are not yet using cloud to drive com¬petitive advantage.
Through cloud, Pacesetters are 136% more likely than Chasers to reinvent customer relationships. Pacesetters are 170% more likely than Chasers to use cloud-based analytics to derive insights. Compared to Chasers, Pacesetters are 79% more likely to use cloud to locate and leverage expert knowledge across their ecosystem. No matter which category a business fits into, it’s clear that enterprises are turning to cloud to revamp their existing business models and manage an unprecedented rate of change all on flat to marginally increasing IT budgets. Let’s take a look at the top 5 reasons why businesses are using cloud:
Better insights & visibility: Cloud provides a low-cost, highly scalable environment capable of handling the massive volume, variety and velocity of data to provide insights and visibility for key business decisions.
Brings collaboration: Cloud-based business solutions have accelerated business process innovation, delivered business analytics at the point of impact and enabled collaboration by creating and linking business networks.
Support variety of business needs: Forward thinking enterprises are adopting clouds to build an integrated, dynamic service chain to succeed and achieve innovative business results.
Innovation: Enterprises are increasingly looking to use cloud computing to speed up business innovation, empower their end users and improve overall data-center efficiency.
- Proven results: Cloud helps organizations achieve their desired business outcomes by improving the responsiveness of their IT infrastructure without increasing risk or cost.
The continuous need for speed and efficiency is driving cloud to the top of mind for clients. One of the foundational approaches that market-leading enterprises are using to enhance their cloud infrastructure is Software Defined Environment (SDE). A Software Defined Environment is an enabler and ideal architecture for private, public and hybrid clouds where enterprises take advantage of virtualization not just in servers, but also in networking, storage, availability, management and automation. An SDE rapidly and automatically deploys new workloads on optimal resources, based on business needs and an enterprise’s resource attributes. Combining the transformational power of cloud computing with the benefits of SDE enables cloud-based workloads to achieve their highest levels of performance, reliability and scalability.
I encourage you to access the cloud study and join us at PULSE 2014 to learn how IBM is establishing a business and IT services model premised on business value and enabled by cloud. Also, do not forget to share your experiences and point of views related to Cloud with us on Twitter @IBMSDE.
IBM Systems and Technology Group