Study: Businesses Move Toward Broad Adoption of Cloud

HyTrust, Mountain View, Calif., said after a slow, grudging start, businesses have moved toward broad adoption of software-defined data centers, i.e, the Cloud.

The company’s report, Industry Experience: the 2016 State of the Cloud and Software Defined Data Center (SDDC) in Real-World Environments, said where migration toward the SDDC previously happened in a gradual way, with much of the action coming from a few select verticals, this dynamic trend is now gaining broad-scale adoption in a wide range of functions and industries–and it’s only going to get more aggressive.

“Without much fanfare, this critical technology advance has become woven into the basic fabric of businesses large and small,” said Eric Chiu, president of HyTrust. “The potential of virtualization and the cloud was always undeniable, but there was genuine concern over security and skepticism regarding the processes required.

Key findings of the report:

–82% of financial institutions plan to use public cloud more this year

–44% of those working at financial organizations say they’ve been the victim of a personal data breach

–44% predict more breaches this year, while only 20% foresee less – and 22% predict fewer, but only after there’s a strategic focus on security to address those requirements

–51% of financial services respondents predict faster cloud and SDDC deployment in 2016, and 63% anticipate increased adoption

–Nearly 51% say they will see greater tangible benefits and a quantifiable ROI from cloud computing, such as enhanced efficiency, agility, flexibility and provisioning

–73% of those asked say they believe security will be less of an obstacle to greater SDDC adoption by the end of the year

–Compliance or audit failure is ranked the concern most likely to slow migration to SDDC (with 64% ranking it as likely or most likely), while data center outage and loss of operational efficiencies tied for the next spot (at 53%)

–56% identify the perception of inadequate security along with the fear of lower security levels than are available in a physical data center as the biggest security gaps holding back cloud and SDDC deployment, while 40% say lack of solutions from current vendors, the immaturity of vendors or new vendor offerings or issues with cross-platform interoperability is the biggest gap holding back deployment.

Chiu said now that security concerns and skepticism over processes has been overcome, every kind of function in every kind of industry is being migrated. “There are some holdouts, to be sure, but they’re now the exception, and we’re betting they won’t stay that way for long,” he said.