Businesses Are Spending Big Bucks On The Cloud

The adoption of cloud computing technologies among enterprises has potentially limitless implications for businesses. Cloud technology has made an impact on B2B payments, security, Big Data analytics, customer insight, supply chain management and cash flow oversight.

While companies remain cautious about cloud computing – most notably regarding its data security – new research reveals just how much businesses are willing to spend to ensure their operations are in the cloud.

A recent survey released by Cowen & Company highlights the priorities for businesses looking to invest in cloud computing. Funding, the research shows, will increase seven-to-eight times the average IT spending level this year alone.

An impressive 77 percent of respondents said that they have already meaningfully adopted cloud technology and agree that even more of their business processes could be moved to the cloud. That figure is a stark jump from last year’s 58 percent.

Cowen & Company’s findings also reveal the most popular cloud service providers among businesses. According to the research, 73 percent of companies are planning to adopt Microsoft Azure over the next year or so. That compares with 44 percent planning to integrate Citrix CloudPlatform, 44 percent planning to integrate Cisco, and 36 percent planning to integrate VMWare Hybrid Cloud.

More than half (57 percent) said they are also expecting their corporate budget to increase in the next year for Adobe applications, while 43 percent expect the same for Salesforce apps and 38 percent for LinkedIn.

“LinkedIn’s B2B focus shows how enterprises are relying more extensively in SMAC-based technologies to strengthen their lead generation and selling strategies,” the report concluded.

Meanwhile, Amazon, Informatica, DataStax and HortonWorks are the data platform service providers expected to see the largest budget increases from 2015.

Overall, more than half (53 percent) of companies said they plan to procure Infrastructure-as-a-Service from their IT services provider, as opposed to other vendors like IT hardware, IaaS or equipment vendors.