Microsoft Cloud Authors: Jim Kaskade, Lori MacVittie, Andreas Grabner, Janakiram MSV, Pat Romanski

News Feed Item

RightScale Releases 2014 State of the Cloud Report

Public Cloud Adoption Nears 90 Percent on the Journey to Hybrid Cloud

SANTA BARBARA, CA -- (Marketwired) -- 04/02/14 -- RightScale® Inc., a demonstrated leader in enterprise cloud portfolio management, today announced the results of its 2014 State of the Cloud Survey. The survey found that cloud adoption is reaching ubiquity as enterprises increase both public and private cloud adoption, but enterprise governance is lagging. In addition, the survey found as enterprise cloud maturity progresses, cloud security concerns abate and attention increasingly shifts to managing ongoing challenges of compliance, cost management, and performance. The survey also identified significant interest in infrastructure-as-a-service offerings from Microsoft and Google, and a looming face-off between VMware and OpenStack in the private cloud market.

The full results of the survey are available in the RightScale 2014 State of the Cloud Report at www.rightscale.com/2014-cloud-report.

"Enterprises are adopting cloud computing in record numbers and have leveraged growing experience to overcome many of the early challenges including security," said Michael Crandell, founder and CEO of RightScale. "Large enterprises are complex and understandably deliberate in cloud adoption, yet with increased adoption they continue to unlock more value."

More Cloud Adoption Unlocks More Cloud Value

As it did in 2013, RightScale evaluated responses with a Cloud Maturity Model in order to segment and analyze companies based on their level of cloud adoption.

  • Cloud Watchers are organizations that are developing cloud strategies and plans but have not yet deployed applications into the cloud.
  • Cloud Beginners are new to cloud computing and are working on proof-of-concepts or initial cloud projects.
  • Cloud Explorers have multiple projects or applications already deployed in the cloud.
  • Cloud Focused businesses are heavily using cloud infrastructure.

The 2014 survey echoes a key finding of the 2013 State of the Cloud Report: cloud maturity matters. As organizations adopt cloud more broadly, they realize increasingly more value, and the challenges of adopting cloud decline.

  • Cloud reaching ubiquity: In the 2014 survey, 94 percent of organizations surveyed are running applications or experimenting with infrastructure-as-a-service. 87 percent of organizations are using public cloud.
  • Enterprise adoption matures: Enterprises with more than 1,000 employees have moved beyond the Cloud Watcher stage. In 2014, only 16 percent of respondents were in this early phase, down from 32 percent in 2013.
  • Workloads broaden: As organizations progress in cloud maturity, the types of workloads they deploy in the cloud broaden. Test and development applications top the list, with more than 85 percent of cloud-focused companies deploying them in the cloud. Customer web apps (78 percent), internal web apps (70 percent), batch processing (62 percent), and mobile apps (54 percent) also are deployed in the cloud by a majority of Cloud Focused organizations. Only social apps saw significantly fewer cloud deployments in 2014 at 18 percent (down from 23 percent in 2013).
  • Cloud benefits grow in 2014: The number of respondents reporting benefits from cloud computing grew in 2014 over the previous year in a variety of categories, including higher availability (48 percent, up from 41 percent in 2013), geographic reach (37 percent, up from 32 percent in 2013), cost savings (34 percent, up from 30 percent in 2013), and business continuity (34 percent, up from 28 percent in 2013).
  • Overcoming security with experience: While the benefits of the cloud increase with experience, the challenges of cloud show a sharp decrease as organizations gain expertise with cloud. Security remains the most-often cited challenge among Cloud Watchers (31 percent) but decreases to the fifth most cited (13 percent) among Cloud Focused organizations. As organizations become more experienced in cloud security options and best practices, the less of a concern cloud security becomes. For Cloud Focused respondents, issues that require ongoing attention -- compliance, cost and performance -- are most often cited as challenges.

Next-Generation, Cloud-Based IT Includes Hybrid, DevOps and Self-Service IT

The RightScale 2014 survey found enterprises often have varying combinations of public, private, and hybrid cloud infrastructure, with hybrid and multi-cloud implementations as the end goal for most enterprises. At the same time, two other significant trends are taking hold in corporate technology offices: DevOps and Self-Service IT. Together, these three initiatives -- Cloud, DevOps, and Self-Service IT -- are shaping up as the critical pillars of next-generation IT.

  • Hybrid cloud is the approach of choice : 74 percent of enterprise respondents have a multi-cloud strategy, and 48 percent are planning for hybrid clouds. In addition, 15 percent of enterprises expect to use multiple public clouds, and 11 percent are planning for multiple private clouds.
  • Enterprises progress on hybrid initiatives: Among the 74 percent of enterprises that have a multi-cloud strategy, more than half of those are already using both public and private cloud.
  • Next-generation IT shapes up as Cloud + DevOps + Self-Service IT: Cloud Focused companies are also embracing DevOps (71 percent) and Self-Service IT (68 percent). More than 70 percent of mature cloud users are able to provide self-service access to provision resources in the cloud in under an hour.

Addressing the Challenges Ahead

Although enterprises are progressing in cloud adoption, many have yet to define key elements of their cloud strategy and governance. Less than a third of organizations have defined such critical aspects of governance as which clouds can be used, disaster recovery approaches, and cost management.

  • Defining business value: Just over half of enterprises have defined the business value they want to get from cloud initiatives and security policies for cloud.
  • Defining policies: Only a minority of organizations has defined policies for choosing public or private clouds (36 percent), implementing availability or disaster recovery (32 percent), and managing costs (29 percent).
  • Competing view points of cloud within the enterprise: In addition to current gaps in cloud governance, there are differing views between central IT and technical teams in business units about the role IT plays in the cloud. While central IT envisions a broad role for itself in selecting clouds, setting policies, building a private cloud, and brokering cloud services; respondents in business units see the role of IT as much narrower.

Growing Competition among Cloud Providers

Amazon Web Services (AWS) continues to dominate public cloud adoption, while other vendors and options are quickly gaining interest from cloud users.

  • Public cloud space heating up: AWS adoption is 54 percent - 4x the nearest competitor. IaaS offerings from Google and Microsoft are gaining the interest of cloud users, with Azure leading among enterprises and Google Cloud Platform among small and midsize organizations. Rackspace Public Cloud is second within the SMB segment.
  • Private cloud: The battle among private cloud technologies is shaping up as a clash of cultures between the open-source OpenStack and proprietary solutions from VMware. While 31 percent of enterprise respondents view their VMware vSphere/vCenter environments as a private cloud, OpenStack is well-positioned to unseat VMware in private cloud -- coming in first in interest and second in current usage. Microsoft System Center is waiting in the wings with a strong third position among enterprise users.

Survey Methodology

RightScale conducted its annual State of the Cloud Survey in February 2014. The survey questioned technical professionals across a broad cross-section of organizations about their adoption of cloud computing. The 1,068 respondents range from technical executives to managers and practitioners and represent organizations of varying sizes across many industries. Respondents represent companies across the cloud spectrum, including both users (28 percent) and non-users (72 percent) of RightScale solutions. Their answers provide a comprehensive perspective on the state of the cloud today.

About RightScale

RightScale® Inc. Cloud Portfolio Management enables leading enterprises to accelerate delivery of cloud-based applications that engage customers and drive top-line revenue while optimizing cloud usage to reduce risk and costs. With RightScale, IT organizations can deliver instant access to a portfolio of public, private, and hybrid cloud services across business units and development teams while maintaining enterprise control. RightScale offers RightScale Cloud Analytics to help bring clarity to organizations on current cloud costs and help model and optimize for future cloud use. RightScale CloudSight consulting helps companies develop cloud strategies, deliver cloud projects, and optimize cloud usage. Since 2007, leading enterprises including Pearson International, Intercontinental Hotels Group, and PBS have launched millions of servers through RightScale.

RightScale is a registered trademark of RightScale, Inc. All other trademarks are property of their respective owners. Other product or company names mentioned may be trademarks or trade names of their respective companies.

PR Contact:
Bret Clement
RightScale PR
Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Penta Security is a leading vendor for data security solutions, including its encryption solution, D’Amo. By using FPE technology, D’Amo allows for the implementation of encryption technology to sensitive data fields without modification to schema in the database environment. With businesses having their data become increasingly more complicated in their mission-critical applications (such as ERP, CRM, HRM), continued ...
SYS-CON Events announced today that Enzu will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their online busine...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
SYS-CON Events announced today that Cloudbric, a leading website security provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Cloudbric is an elite full service website protection solution specifically designed for IT novices, entrepreneurs, and small and medium businesses. First launched in 2015, Cloudbric is based on the enterprise level Web Application Firewall by Penta Security Sys...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today that Coalfire will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Coalfire is the trusted leader in cybersecurity risk management and compliance services. Coalfire integrates advisory and technical assessments and recommendations to the corporate directors, executives, boards, and IT organizations for global brands and organizations in the technology, cloud, health...
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium will exhibit at the 19th International Cloud Expo®, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
SYS-CON Events announced today that MathFreeOn will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MathFreeOn is Software as a Service (SaaS) used in Engineering and Math education. Write scripts and solve math problems online. MathFreeOn provides online courses for beginners or amateurs who have difficulties in writing scripts. In accordance with various mathematical topics, there are more tha...
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...