The 2019 IDG Cloud Computing Survey is out, and it’s got some pretty interesting stuff for businesses looking at how they use technology. It seems like everyone’s still figuring out the best way to use the cloud, but there are definitely some clear patterns emerging. This report dives into what companies are doing, why they’re doing it, and what challenges they’re running into. If your business is thinking about its tech strategy, this is definitely worth a look.
Key Takeaways
- Hybrid cloud is becoming the go-to setup for most businesses, blending different cloud types to get the best of all worlds. Companies are moving more and more of their operations to the cloud, and the ‘as-a-service’ model is just a normal part of how things work now.
- Cutting down on IT costs and getting products to market faster are still big reasons why companies are moving to the cloud. Plus, the cloud just seems to offer better service quality compared to the old ways of doing things.
- The IT department’s job is changing. Instead of just keeping the lights on, IT is now focused more on coming up with new ideas and helping the business grow. Technology is also a huge part of changing how people work within companies.
- New tech like AI, machine learning, and 5G are gaining a lot of attention, and businesses see the cloud as the main way to bring these innovations to life. It’s all about using technology to find new opportunities.
- Businesses are spending more money on digital projects, splitting their budgets pretty evenly between technology and the people who use it. Figuring out a clear plan is seen as the most important step for making these digital efforts work.
Key Cloud Adoption Trends Highlighted in the IDG Cloud Computing Survey 2019
The 2019 IDG Cloud Computing Survey really paints a picture of where businesses are heading with their technology. It’s clear that the cloud isn’t just a buzzword anymore; it’s becoming the backbone of how companies operate. We’re seeing a definite shift, and understanding these trends is pretty important if you want to keep up.
Hybrid Cloud Emerges as Dominant Future Model
It looks like most businesses aren’t going all-in on just one type of cloud. Instead, they’re leaning towards a mix. Think of it like having different tools for different jobs. This hybrid approach, combining public and private clouds, seems to be the sweet spot for many. It offers flexibility while keeping certain sensitive things closer to home. Gartner’s research backs this up, suggesting that a huge chunk of companies see hybrid cloud as their main setup down the road.
Accelerated Migration Towards Cloud Environments
Companies are definitely picking up the pace when it comes to moving their operations to the cloud. The survey shows a strong push, with many IT departments feeling the pressure to get everything online. The old way of doing things, with a lot of on-premise hardware, is shrinking. We’re seeing a significant drop in the percentage of IT infrastructure that’s not in the cloud, and that trend is only expected to continue.
The Pervasive "As-a-Service" Reality
This "as-a-service" model, whether it’s software (SaaS), infrastructure (IaaS), or platforms (PaaS), is becoming the norm. It’s all about accessing what you need, when you need it, without the headache of managing the underlying hardware. This shift is changing IT from a capital expense to an operating cost, which makes a lot of financial sense for businesses. It means companies can use top-tier software and infrastructure without massive upfront investments.
Driving Forces Behind Cloud Migration Strategies
So, why are businesses really packing up their servers and moving to the cloud? It turns out there are some pretty solid reasons, and they all boil down to making the company run better and smarter.
Significant Reduction in IT Operational Costs
Let’s face it, running your own data center is expensive. You’ve got hardware to buy, power to pay for, and space to maintain. When you move to the cloud, a lot of that headache goes to the provider. Think about it: no more massive electricity bills for racks of servers humming away, and you can actually use that office space for, you know, people. Some companies have seen their electricity costs drop by as much as 90% after making the switch. Plus, with less hardware to fuss over, your IT team can stop playing IT janitor and focus on more important stuff. This shift from managing physical infrastructure to utilizing cloud services is a major money-saver.
Achieving Faster Time-to-Market for Products
In today’s fast-paced world, getting your product out the door quickly is key. The cloud really helps with this. It gives you access to resources whenever you need them, so you can quickly test out new ideas or build prototypes without a huge upfront investment. This agility means you can respond to what the market wants much faster than if you were stuck with traditional IT setups. It’s like having a super-powered workshop that’s always ready to go.
Enhanced Service Quality Over Traditional IT
Beyond just saving money and speeding things up, the cloud often means better service all around. For your customers, this can mean quicker responses because their information is readily available. For your employees, it means tools that are more accessible and up-to-date. IT departments can respond to business needs in minutes, not days or weeks. It’s a win-win, making things smoother for everyone involved.
The Evolving Role of IT in the Digital Business Landscape
It feels like IT departments are getting a bit of a makeover, you know? They’re not just the folks who fix the printers anymore. With all this digital stuff happening, IT is really stepping up to be more than just a support system. They’re becoming a big part of how a business actually grows and comes up with new ideas.
Focus Shifts to Innovation and Strategic Growth
Think about it: instead of just keeping the lights on, IT teams are now looking at how technology can help the company make more money or get ahead of competitors. It’s like they’re moving from just managing what exists to actively building what’s next. This survey shows that a lot of businesses are seeing new products and services (around 50%) and a better shot at innovating (49%) because of these changes. It’s a pretty big shift from just maintaining servers.
Workforce Transformation Fueled by Technology
And it’s not just about the tech itself. IT is also playing a role in how people work. They’re looking at how to change internal processes, how teams are structured, and even how people get trained, all because of new technology. It makes sense, right? If you’re using new tools, you probably need to learn new ways to use them. The survey found that about 37% of companies have already started changing how their workforce operates, and most (93%) agree that how productive people are really depends on the technology they have.
Measuring Digital Initiative Success
So, how do you know if all this digital transformation stuff is actually working? Well, IT is helping figure that out too. It’s not just about whether the systems are running smoothly. Now, success is often measured by things like how happy customers are, or if employees can get their work done faster because of new tools. Some companies are even seeing revenue go up because of these digital efforts. For example, about a third of businesses reported revenue growth from digital initiatives, with an average increase of almost 30%.
Emerging Technologies and Their Integration with Cloud
It’s not just about moving what you already have to the cloud anymore. Businesses are really starting to look at how new tech can work with the cloud to do some pretty cool stuff. Think of the cloud as the engine room, and these emerging technologies are the new parts you’re bolting on to go faster and further.
Exploration of Artificial Intelligence and Machine Learning
Artificial intelligence (AI) and machine learning (ML) are big players here. The cloud makes it possible to handle the massive amounts of data these technologies need to learn and operate. We’re seeing AI pop up everywhere, from automating simple office tasks to how customer service reps interact with people. It’s about making things smarter and more efficient. This synergy between AI/ML and cloud infrastructure is a game-changer for how businesses operate.
Interest in 5G and Internet of Things (IoT)
Then there’s the Internet of Things (IoT). You know, all those connected devices, from smart thermostats to industrial sensors. The cloud is where all that data from IoT devices can be collected, processed, and analyzed. And with 5G rolling out, offering way faster internet speeds, it’s going to make real-time data from IoT devices even more practical. Imagine field workers getting instant updates or complex machinery reporting issues the second they happen. It’s pretty wild.
Cloud as a Catalyst for Innovation
Basically, the cloud is becoming the go-to place for trying out new ideas. It’s way easier and cheaper to spin up a test environment in the cloud than it is to buy and set up all the hardware yourself. This means companies can experiment more, prototype faster, and generally just innovate at a quicker pace. It’s less about just saving money on IT and more about using that agility to build the next big thing. This shift means that managing cloud computing expenses is still a big hurdle for many, but the potential rewards are driving adoption forward organizations face significant challenges in managing cloud computing expenses.
Here’s a quick look at how these technologies are fitting in:
- AI/ML: Automating processes, improving customer interactions, data analysis.
- IoT: Connecting devices, collecting real-time data, enabling new services.
- 5G: Faster connectivity, supporting more devices, enabling real-time applications.
- Cloud: Providing the scalable infrastructure and processing power for all of the above.
Investment and Budget Allocation for Digital Transformation
So, how much are businesses actually putting their money where their digital ambitions are? The IDG Cloud Computing Survey 2019 shows a pretty clear picture: companies are seriously investing in digital transformation. We’re talking about a significant chunk of change being set aside for these initiatives. In fact, the survey found that organizations planned to spend an average of $15.3 million over the next year on digital business projects. That’s up from the previous year, which tells you something, right?
Increased Spending on Digital Business Initiatives
It’s not just a small bump in spending; it’s a real commitment. This increased investment is driven by a few key things. For starters, creating better customer experiences is a huge priority, with 67% of IT decision-makers putting it in their top five goals. Beyond that, businesses are looking to improve how efficiently things run through automation, and of course, to find new ways to make money and keep up with the competition. It’s clear that digital transformation isn’t just a buzzword anymore; it’s a core part of business strategy. Global spending on digital transformation is really picking up steam, showing how important this shift is for companies today.
Budget Split Between Technology and People
When it comes to where this money is going, it’s not all just about buying new gadgets. The survey broke down the budget, and it’s a pretty balanced split. On average, 59% of the digital transformation budget is allocated to technology, while 41% is dedicated to people and developing the necessary skills. This makes sense when you think about it. You can have all the fancy new software and hardware, but without people who know how to use it and adapt to new ways of working, it’s not going to get you very far. It highlights that companies recognize the need for both the tools and the talent.
Crucial Steps for Digital Business Success
So, with all this money being spent, what are the most important things businesses need to get right? The survey pointed to a few key areas. While things like data security and figuring out technology needs are progressing well, the top step for making digital business a success is developing a solid business case and a clear roadmap for the overall transformation strategy. Without that guiding plan, it’s easy to get lost or waste resources. Other important steps include:
- Assessing technology needs thoroughly.
- Establishing robust data management strategies.
- Prioritizing security and data protection from the start.
Getting these foundational elements in place seems to be the real key to making digital transformation efforts pay off.
Challenges and Considerations in the Cloud Environment
So, we’ve talked a lot about the good stuff with cloud computing, right? Faster speeds, lower costs, all that jazz. But it’s not all sunshine and rainbows. Businesses diving into the cloud, or even just expanding their use of it, run into some real hurdles. It’s important to know these bumps in the road so you can plan for them.
Navigating Cybersecurity Concerns
This is a big one. As companies move more of their operations and data off-site, keeping everything secure becomes a major headache. It’s like moving your valuables to a new bank – you want to be sure the vault is Fort Knox level. Cybersecurity worries are a real drag on innovation, with some businesses even hitting the pause button on new projects because they’re just too nervous about the risks. Think about AI projects or other new tech that relies heavily on data; if the security isn’t rock solid, companies are hesitant to even start. It’s a constant game of catch-up with the bad guys, and many organizations are finding that bringing in outside help from specialists is the way to go. These security pros live and breathe this stuff and can keep up with the latest threats.
Addressing Data Silos for Effective Analytics
Another common problem is data silos. You know, where information is locked away in different departments or systems and can’t talk to each other? It’s like having a bunch of separate filing cabinets that nobody can access from outside their own office. This makes it really tough to get a clear picture of what’s going on using data analytics or AI. Breaking down these silos isn’t just an IT job; it often needs a shift in company culture too. People need to be willing to share information across teams for the data to be truly useful for future innovation.
Weighing the Trade-offs of "As-a-Service" Models
When you move to an "as-a-service" model, you get a lot of benefits, like flexibility and not having to manage the underlying tech yourself. But there’s a flip side. You’re essentially handing over control of certain functions to a third party. This can lead to vendor lock-in, where your systems become so tied to one provider that switching becomes a massive undertaking. It’s important to pick your cloud partners wisely and understand exactly what you’re giving up in terms of control versus what you’re gaining in convenience and agility. Plus, keeping your IT staff’s skills up-to-date with the fast-changing tech landscape is another challenge that requires constant attention and training.
Wrapping It Up: What Businesses Should Take Away
So, what’s the big picture here? The 2019 IDG Cloud Computing Survey really shows that businesses are moving full steam ahead with cloud technology. It’s not just a trend anymore; it’s becoming the standard way to do things. Companies are seeing real benefits, like saving money on hardware and energy, and getting new products out the door faster. Plus, they’re finding that cloud services can actually improve how they serve their customers and help their own employees work better. While there are still hurdles, like making sure everything is secure and getting different departments to work together, the message is clear: if you’re not looking at the cloud, you’re probably falling behind. It’s about more than just saving cash; it’s about staying competitive and ready for whatever comes next.
Frequently Asked Questions
What is the main trend in cloud use for businesses?
Most businesses are moving towards a ‘hybrid cloud’ setup. This means they use a mix of different cloud services and their own private systems to get the best of both worlds.
Why are businesses moving to the cloud so quickly?
Companies are moving to the cloud mainly to save money on IT costs, get their products to customers faster, and improve the quality of their services.
How is the IT department’s job changing?
IT teams are spending less time fixing basic computer problems and more time thinking about new ideas and helping the company grow. Technology is also helping employees work better.
What new technologies are businesses looking into with the cloud?
Businesses are very interested in technologies like artificial intelligence (AI), machine learning (which helps computers learn), and the super-fast 5G internet. They also see the cloud as a way to invent new things.
Where is the money going for digital improvements?
Companies are spending more money on digital projects. They are splitting their budgets almost evenly between buying new technology and training their people.
What are the biggest worries when using the cloud?
The main concerns are keeping data safe from hackers (cybersecurity), making sure different computer systems can talk to each other to share information, and understanding the trade-offs of using services managed by others.
