Corporate cloud investment rises to an average of $1m, survey finds

Corporate cloud investment rises to an average of $1m, survey finds

Corporate cloud investment rises to an average of $1m, survey finds

According to a new survey from an IT publisher, investment in the cloud by corporations has risen to an average of $1 million, with private cloud deployments making up a large share of the market.

The IDG Enterprise Cloud Computing Report revealed that increasing numbers of corporations across the world are expecting to “transition key IT operations to the cloud over the next five years”, reported Tech Week Europe.

Already, 61 per cent of organisations have at least some of their computing infrastructure linked to the cloud, the report confirmed, and cloud investments have risen since last year by 10 per cent, representing an average investment of $1.5 million.

Twenty-nine per cent of the 1,358 respondents to the survey confirmed that they expect the vast majority of their IT operations to be within the cloud over the coming five years. They noted that this did not include financial and compliance applications, which they did not see as being in the cloud within that time period.

The survey also found that, such is the ability for the cloud to link with a firm’s business strategy, that it has helped to drive investments as it allows for business continuity and an improvement in the level of customer services and support.

Forty per cent of survey respondents reported that the cloud allowed an increased level of flexibility to react to changing market conditions, whilst 40 per cent also said that the cloud removed resource waste.

Private clouds were seen as a cost-effective, fast and secure infrastructure ideal, with many companies looking to the concept for their future IT needs.

Bob Melk, senior vice president, group publisher and CMO of IDG Enterprise, told Tech Week Europe: “Private cloud models continue to maintain the largest footprint.

“However, the different factors that contribute to these decisions continue to evolve. The sensitivity of compliance, security management as well as cultural implications and total cost of ownership is driving each organisation to evaluate their risk tolerance with unique business needs in order to execute their optimal cloud strategy,” Mr Melk went on to say.

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