2010 a Boom Year for Cloud Computing?

There's still a lot of hype surrounding the platform, but if recent market research is any indication, computing in the clouds could achieve a breakthrough of sorts in 2010.

Consider a new study from market watcher Aberdeen Group, which concludes that companies pursuing cloud strategies are able to realize significant savings, including a near 20 percent reduction in administrative costs, compared to non-adopters.

Aberdeen's research comes with an obvious caveat: It isn't enough to simply develop a cloud computing strategy; successful cloud adopters -- shops that reap the biggest benefits from their cloud implementations -- must also develop appropriate support resources, such as a formal cloud computing team or task force, to better manage their cloud investments.

"Discussions of cloud computing have made their way up to the boardroom just as board-level talk of outsourcing did in the 1980s and the Internet did in the 1990s," wrote analysts Bill Lesieur and Carol Baroudi in "Business Adoption of Cloud Computing," a recent Aberdeen research publication. "Beyond cloud as a transformational technology, the CFO and board level are looking at the economics of cloud, specifically converting traditional fixed capital expenditure...spending to variable operating expenditure [or opex] spending."

One salient takeaway, Lesieur and Baroudi concluded, is that successful cloud adopters continuously monitor their cloud-based assets to measure both efficiency and use. On top of this, Aberdeen noted, successful cloud implementations start from the top down (i.e., with C-level leadership). They're also ROI-driven -- or, more precisely, use ROI analysis to drive deployment decisions.

Cloud applications aren't deployed in a vacuum, either. Successful cloud adopters take end user satisfaction seriously; cloud-based apps can't have an impact, much less fulfill ROI projections, if users aren't consuming them.

There's a kind of stratification between cloud adopters, according to Aberdeen. Enterprise-class shops tend to pursue cloud computing as a consequence of existing investments in virtualization and, to a lesser extent, green IT. In this sense, cloud computing could even be described as a logical continuation of extant virtualization or energy-efficiency efforts.

One upshot of this is that enterprise IT organizations, more so than IT practices in small- and midsize (SMB) shops, have a disproportionate interest in private clouds. More than half (56 percent) of enterprise IT organizations are building their own private cloud-based infrastructures, according to Aberdeen; less than one-fifth (20 percent) of SMB shops are doing as much.

"Having become a mainstream IT infrastructure solution for a number of years, virtualization has dramatically changed datacenter operations," Lesieur and Baroudi wrote. "Cloud computing was born to further abstract the physical hardware infrastructure from the services and application layer of IT architectures."

SMB customers, on the other hand, typically start with the cloud platform-as-a-service (PaaS). These shops have either been slower to pursue in-house virtualization or energy-savings efforts or -- just as likely -- have fewer legacy resources to bring along for the ride. One upshot of this is agility. They can more easily transition to a loosely coupled PaaS cloud architecture. Nearly half (45 percent) of SMB shops cited plans to outsource some or all of their applications to PaaS cloud providers.

Similarly, SMBs are much more likely to outsource infrastructure resources to PaaS providers, too. According to Aberdeen's survey, 28 percent of SMB shops cited a willingness to do as much compared to just 15 percent of large enterprises.

"Enterprise companies have more complex IT environments with legacy applications and infrastructures while SMBs are adopting cloud applications that do not require legacy planning and transition strategies," Lesieur and Baroudi wrote.

About the Author

Stephen Swoyer is a Nashville, TN-based freelance journalist who writes about technology.

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Fri, Aug 20, 2010 we are cloud france

Thanks for this post. The compelling business case for the cloud is realized by many IT professionals, but determining the return on investment of a technology such as cloud computing can prove to be difficult. Have you encountered the ITX (IT Cloud Transformation) ROI Calculator? It's a free online service which will enable you to quickly estimate how much you stand to save in the cloud, versus on-premise. The program takes into account software applications, servers, data centers and back office functions and determines which would be cheaper with Web-based software applications and how long it would take to achieve ROI. For more info see this blog post

Wed, Dec 16, 2009 Global Security Challenge LLP London, UK

Cloud Computing will continue to be a hot topic but the issue of security is still a huge concern from our studies. Global Security Challenge LLP hold competitions throughout the year and will be launching The Cloud Security Challenge 2010, in conjunction with HP Labs to encourage start ups/indiviuals to bring forward their ideas/innovations that will help to address this concern. Winning ideas will receive a prize of £10,000 plus ongoing mentoring. Details of this are available at

Wed, Dec 16, 2009

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Fri, Dec 11, 2009 Chris Damvakaris

While I don’t think the Cloud will experience a ‘boom,’ I do anticipate continued growing adoption of hosted and Cloud-based services. The economy is forcing more business, from SOHO to the enterprise, to consider and adopt Cloud-based solutions to deal with aging IT infrastructure and applications. This is particularly true when it comes to core business functions like email or phone systems. Cloud-based email, such as Microsoft hosted Exchange, is already fairly common among small and mid-size companies, but expect to see larger enterprises make the switch as well, especially with competition among cloud email providers driving down the cost while also driving up features and functions. Chris Damvakaris Apptix

Wed, Dec 9, 2009 Network monitoring tool

It really is a boom year for cloud computing, Even Microsoft has announced the combination of the Windows Azure group with the Windows Server and Solutions group into a new organization, titled the Server and Cloud Division.

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