Commentary

The State of Cloud Adoption

Cloud computing continues to make enterprise inroads, according to two recent Deloitte studies that shed light on business acceptance of cloud solutions and services. The vast majority of business executives who responded to the 2018 global outsourcing survey, 93%, say their organizations are adopting or considering the cloud. Similarly, 90% of CIOs and C-suite executives who participated in Deloitte’s 2018 global CIO survey say their organizations are using cloud-based services.

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Overall, CIO survey participants spend an average of 22% of their IT budgets on cloud-based services, an amount that is expected to double (44%) in the next three years. While more of the study’s 1,437 participants currently favor the cloud for nonmission-critical applications (57%) and infrastructure (44%), nearly a third say they are using the cloud for applications (32%) and infrastructure (28%) that are mission-critica

 

Current Uses of Cloud Computing; Currently cloud-based

Nonmission-critical applications

57%

Solutions that require 24/7 support

46

Nonmission-critical infrastructure

44

Solutons for global use

38

New solutions

36

Mission-critical applications

32

Customizable solutions

30

Source: Deloitte 2018 Global CIO Survey

 

Khalid Kark, research director for Deloitte LLP’s U.S. CIO Program, says,

“Most respondents expect to shift mission-critical applications (54%) and infrastructure (54%) to the cloud over the next three years. As cloud providers continue to prove they’re able to securely deliver nonstrategic services and solutions, executives’ comfort level with the cloud appears to be increasing.”

 

Expected Uses of Cloud Computing in Three Years

Nonmission-critical applications

57%

Solutions that require 24/7 support

56

Nonmission-critical infrastructure

54

Solutons for global use

52

New solutions

51

Non mission critical infrastructure

51

Customizable solutions

39

Source: Deloitte 2018 Global CIO Survey

 

For CIO survey participants, the chief drivers of cloud adoption are scalability (75%) and business agility (72%). Many (44%) are motivated by lower costs; however, they caution that without strong governance, enterprises could end up with cloud sprawl and corresponding cost increases. Although protecting business data and operations in the cloud has historically been a concern, some survey respondents’ qualms appear to be dwindling. In fact, 34% of them see the cloud as a way to enhance security.

 

Primary Reasons for Using Cloud Technology

Increase scalability

75%

Improve business agility

72

Reduce cost

44

Enhance security

34

Improve functional efficiency

28

Boost computing power

25

Source: Deloitte 2018 Global CIO Survey

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