Hybrid model to dominate cloud over next decade

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Cloud wobbles as firms deliberate over ERP, hybrid and others

Enterprise cloud takeoff sluggish as ERP considerations weigh heavy

By ECM Plus staff

ECM Plus +++ A new survey by UNIT4 Business Software gauging the current attitudes to cloud take-up for core back-office functions, has revealed three main themes emerging.

According to the findings, the first is that cloud adoption rates remain steady this year; the second finding is that cloud adoption in the public sector is set to grow at the same rate as in the private sector; and, that enterprise applications will move to the cloud gradually over the next 10 years.

The survey revealed that 32 percent of respondents said they will spend more on cloud computing this year, while 32 percent said they would spend at the same rate as they did last year.

Only 4 percent said they planned on spending less than before 2010, and 31 percent said they planned on spending nothing on cloud computing.

Almost half of respondents cited they do not currently use any cloud applications in the back-office.

Another third said that between one and 25 percent of their back-office functions are currently cloud-based. Potential for growth in the enterprise space is significant. Six respondents of different organisational size, geography and industry cited their back-office functions to be 100 percent cloud based.

The top three perceived disadvantages of cloud computing are:

· a loss of control (51%)

· reliance on the Internet (54%)

· difficult to customise (38%)

The top three perceived advantages of cloud computing according to the survey are:

· easier maintenance (62%)

· automatic updates (42%)

· scalability (44%)

Despite a current low level of cloud adoption cited among 123 public sector organisations currently and relatively little planned investment in 2011, 25 percent estimate that cloud will account for between 25 and 50 percent of their back-office cloud applications 10 years from now, and 17 percent estimate it will be between 50 and 75 percent. The key perceived advantage of cloud technology according to the Government sector respondents was easier maintenance, while reliance on the Internet and loss of control were perceived as the main disadvantages.

Core back-office business applications likely to be cloud-based 10 years from now cited by private sector firms was cited at being just 9 percent who expect applications to remain 100 percent on-premises.

8 percent said they expected to be completely cloud-based.

Unit 4 stated it was of the view that a hybrid approach to cloud adoption appeared to be the most popular model for the next decade, at least with 83 percent saying they expected to have a mix of on-premises and off-site, remote location cloud technology. 377 respondents expect 50 percent.

Anwen Robinson, managing director for UNIT4 Business Software commented: “Cloud adoption rates are increasing, however, the approach to adoption is a careful consideration for organisations that have significant back-office systems in place and rely on ERP to run their business.”

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1 Comment

Filed under Analysis, Cloud Computing, Enterprise Resource Planning & Management, Hybrid Cloud

One response to “Hybrid model to dominate cloud over next decade

  1. Since the Network Cloud Service providers had to build buildings that had high-quality power and were physically secure, it made sense for them to begin to offer data center space for these emerging consumer application cloud services. In the early days it made more sense for Google to use Savvis to provide data center space. Today, companies like Twitter, Facebook and OpenTable continue to rely on data center services provided by companies like Savvis, NTT, Terremark, and others. Of course, anyone who becomes a student of the cost of computing comes to realize that the cost of power is a big driver. As a result, anyone who needs space for 100,000+ computers (e.g., Google, Amazon, Microsoft) is building data centers located near low-cost and reliable power.

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