Midsize Enterprises Leading the Way with Cloud Adoption: An IDC Infographic

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Cisco Cloud Executive Perspectives: http://cs.co/9005d7dd

Just because you're adopting Cloud doesn't mean you have a Cloud strategy. Recent research by IDC has found that mature organizations have strong Cloud adoption rates, but that doesn't mean they have advanced Cloud strategies — especially enterprises with more than 5 years of operation. However, this presents an opportunity for older enterprises to drive innovation and separate themselves from the pack, or else they will fall behind as other, similar companies evolve their Cloud strategy.

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  • Interesting that both young and mature companies are at less than 20 percent with optimized cloud strategy, but the young ones are close to double the mature ones, but then of companies that 'desire' an optimized cloud strategy, mature lead young 32.6 percent to 20.1 percent. Sounds like older companies are eager to get in the game.
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Midsize Enterprises Leading the Way with Cloud Adoption: An IDC Infographic

  1. 1. AN IDC INFOGRAPHIC, SPONSORED BY CISCO MIDSIZE ENTERPRISES LEADING THE WAY WITH CLOUD ADOPTION Percent of organizations using Cloud or with plans to implement within next 12 months 67.8% 69.7% Medium organizations (between 100 and 1000 employees) Large organizations (more than 1000 employees) 34.0% Small organizations (fewer than 100 employees) By Size 50.8% 55.8% Mature organizations (more than 25 years of operation) 70.0% Young organizations (fewer than 5 years of operation) Medium organizations (between 5 and 25 years of operation) By Age However, just because you're adopting Cloud, doesn't mean you have a Cloud strategy. Organizations with an optimized cloud strategy 17.9% Optimized cloud strategy: 10.2% • A broadly implemented, cloud-first strategy that is proactively managed • Clearly driving business innovation while improving IT operational efficiency Young organizations (fewer than 5 years of operation) Mature organizations (more than 5 years of operation) Young companies, while not necessarily ahead in adoption, have more evolved strategies. Groups within the Organization Expected to Benefit Most from Cloud 29% Program Management 33% Financial & Accounting 31% Customer Support Top 5 Groups to Benefit from Cloud 52% IT Operations 35% Operations Benefits of Cloud For IT Operations: Reduce the size of the IT budget, improve IT staff productivity, simplify and standardize IT infrastructure. For Financial & Accounting: Shift expenses from CAPEX to OPEX. For Other Groups: Faster access to newest functionality, improved resource utilization, enable business units to control IT solutions more directly, build revenue-generating services faster. Mature Organizations Have Strong Cloud Adoption Rates 32% Application Development 33% 31% Financial & Accounting Operations 50% 37% IT Operations Customer Support Older Companies Want to Surpass Younger Companies with Optimized Cloud Strategies Percent of organizations with desired optimized Cloud strategies in 24 months 32.6% Mature organizations (more than 5 years of operation) 20.1% Young organizations (fewer than 5 years of operation) "Have broadly implemented a Cloud first strategy that is proactively managed and is clearly driving business innovation while improving IT operational efficiency" Mature organizations have strong Cloud adoption rates, but that doesn't mean they have advanced Cloud strategies — especially enterprises with more than 5 years of operation. However, this presents an opportunity for older enterprises to drive innovation and separate themselves from the pack, or else they will fall behind as other, similar companies evolve their Cloud strategy. FUTURE CLOUD MARKET Current organizations using the Cloud expect to spend 53.7% of their IT budget in the Cloud in 24 months. The Cloud software market is expected to surpass $75 billion by 2017 with a 5-year compound annual growth rate of 22%. $75B 53.7% Cloud Software Market By 2017 22% 5 Year CAGR Current Organizations IT Budget Spent on Cloud In Next 24 Months "According to IDC analysts and buyer perception, Cisco is an IDC MarketScape 'Global Leader' for cloud support services." Cisco brings people, processes, and technologies together to help customers accelerate datacenter and cloud transformation. Cisco’s methodology for customer-centric engagement assists in cloud transformation by: • • • • • Aligning IT strategies with business goals Improving operational efficiency and reducing costs Enhancing application performance and availability Creating an agile and resilient foundation for business Enabling new business models Source: IDC MarketScape: Worldwide Datacenter Hardware Support Services 2013 Vendor Assessment All IDC research is © 2014 by IDC. All rights reserved.  All IDC materials are licensed with IDC's permission and in no way does the use or publication of IDC research indicate IDC's endorsement of Cisco Services’ products/or strategies.

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