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Takeaways from Verizon’s State of the Market enterprise cloud report

This week, Verizon released its “State of the Market: Enterprise Cloud 2016” report, which highlights a number of interesting observations. It further emphasizes how the cloud continues to transform the enterprise; in fact, 69% of businesses say that the cloud has enabled them to significantly reengineer one or more business processes. That percentage will only continue to increase.

The cloud continues to grow

More than a third of organizations have adapted their business model using the cloud. This ranges from creating a new experience for the customer to altering expenses. Add on the 19% who are doing so, and that’s well over half of all enterprises who are utilizing the cloud in their business model. It’s not enough to be a part of the cloud; you have to find the best way to take advantage of it.

Last year, cloud spending had grown 38% year-over-year. That’s already impressive growth, but 2015 blew it out of the water: a whopping 84% of respondents said their use of cloud increased in the past year. Verizon predicts that within the next couple of years, more than half of all workloads, spanning companies of all kinds, will be running in the cloud.

Cloud is chosen for the value it can add more so than the reduced cost

Early on, cost was the major differentiator for moving to the cloud. But now, more than ever, businesses are looking at reasons specific to their goals before making the move. The main reason for moving to the cloud, polled at 88%, was to improve responsiveness to business needs. Improving operations (65%) was also important. Saving on costs (41%) is still a reason for some businesses, but it’s dwindling, and other value-based reasons, like keeping place and responding to competitors (35%) and addressing lack of internal skills within a business (29%) are also big factors.

An important thing to note is that these goals must be reviewed frequently. Far too often, enterprises will reevaluate their processes five, ten, or even 20 years down the line. But since this industry moves so quickly, what may have been practical a couple of years ago is already outdated today. That’s not changing anytime soon. You must review your decisions and goals often, and re-pivot if necessary.

Hybrid solutions are becoming more popular

We’ve been proud to offer hybrid IT solutions for years, and more and more enterprises are realizing that hybrid is the best fit for them. According to a recent Cloud Cruiser survey, 75% of companies said they plan to include hybrid cloud as part of their strategy. However, many companies still rely on core systems within their own data centers, and replacing these systems isn’t easy. Solely relying on core systems can slow down a company’s growth because it doesn’t offer customers the best experience possible. Digital transformation requires a well thought-out approach throughout the entire company.

With hybrid IT, these systems can physically be co-located in the same place as a private cloud, creating a secure, reliable, and efficient solution. You can easily move workloads between clouds. Adopting a cloud solution, and specifically a hybrid one, can lead to new customer experiences, rejuvenated business processes, and increased opportunities to grow.

It’s an exciting time to be involved with the cloud. We’re looking forward to all that lies ahead, in 2016 and beyond. To learn more, please visit our cloud computing solutions page.

About David Lucky

David Lucky
As Datapipe’s Director of Product Management, David has unique insight into the latest product developments for private, public, and hybrid cloud platforms and a keen understanding of industry trends and their impact on business development. David writes about a wide variety of topics including security and compliance, AWS, Microsoft, and business strategy.

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