Friday, 13 July 2018 12:21

Business adopting multi-cloud strategies: report

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Business adopting multi-cloud strategies: report Image courtesy of jscreationzs at FreeDigitalPhotos.net

Investments in cloud technology and resources are on the rise as enterprises increasingly focus on migrating mission-critical applications to the cloud, according to a new global report.

According to the research report commissioned by enterprise cloud company Virtustream — a Dell Technologies business — shifting business priorities are driving enterprises to adopt multi-cloud strategies.

The research, undertaken for Virtustream by Forrester, found that almost half of enterprises report at least US$50 million in annual cloud spending and a vast majority of respondents plan to increase or maintain their investments over the next two years, including resources devoted to internal staff and external vendors.

And according to Virtustream, increases in cloud adoption and investment are also driving enterprises to update and formalise their cloud strategies in a more intentional way. According to the study, nearly three in four enterprises plan to re-evaluate their cloud strategy within the next two years, or create a new one.

The researchers note that, in future, cloud strategies must aim to create greater alignment between cloud technologies and key business objectives.

The report also found that a vast majority (86%) of respondents describe their current cloud strategy as multi-cloud, with performance and innovation rising above cost savings as the top measures of success.

In addition, 60% of enterprises are now moving or have already moved mission-critical applications to the public cloud.

Virtustream commissioned the survey of 727 cloud technology decision makers at businesses with more than 1000 employees.

“Multi-cloud is a clear reality of the next era in cloud computing. Whether it is employed to balance risk or to leverage the advantages and use cases of various cloud platforms – enterprises are increasingly moving their workloads to multiple cloud providers,” said Deepak Patil, senior vice-president, Product and Technology, Virtustream.

When asked about their organisation’s business objectives for cloud this year, 42% of respondents reported operational efficiency as their top priority, followed closely by innovation and revenue growth, respectively.

Virtustream says most enterprises today are adopting a multi-cloud strategy to optimise performance and meet their business objectives.

As the study notes, “No single cloud platform meets all enterprise workload requirements”. As a result, Virtustream says enterprises are leveraging multiple public and private clouds for different application workloads, with performance cited as the top consideration for most enterprises when matching workloads with cloud environments, outranking even compliance and security".

Virtustream says the IT leaders surveyed show a diverse set of use cases for multi-cloud platforms, believing that a multi-cloud approach yields benefits such as improved IT infrastructure management and flexibility (33%), better IT cost management overall (33%), and improved security and compliance (30%).

The study also found that firms prefer vendor capabilities that deliver deeper levels of help and support when choosing a cloud vendor and IT pros are most likely to be involved in vendor choice (52%), with a select group of C-suite roles getting involved, led by the CIO (34%).

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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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