|[June 19, 2014]
Industry's Largest Cloud Computing Survey Reveals 5X Adoption of SaaS
SAN FRANCISCO --(Business Wire)--
Bridge Venture Partners, in conjunction with Gigaom
Research and a record 72 collaborating organizations, today released
results for its fourth annual Future of Cloud Computing survey. This
survey is the industry's deepest and broadest examination of the cloud
technology revolution. It analyzed the inhibitors and drivers behind
cloud adoption, separating the hype surrounding the cloud from genuine
industry trends and real world cases across a sample of 1,358
respondents. See the complete findings slideshow here: 2014
Future of Cloud Computing survey, along with analysis and commentary
on the results here.
"With four years of data, we're now really beginning to see some
interesting trends, such as the five-fold increase in SaaS (News - Alert) adoption to
74% and the nearly six-fold increase in PaaS adoption to 41%." said
Michael Skok, founder of the Future of Cloud program and General
Partner, North Bridge Venture Partners.
Select Highlights from the Survey Data:
Cloud Adoption Is Strategic
49% of respondents in this year's survey are using cloud to fuel
revenue generation or new product creation.
45% of businesses say they already, or plan to, run their company from
the cloud - showing how integral cloud is to business.
SaaS Adoption Has More Than Quintupled…
…from 13% adoption in 2011 to 74% in this year's survey, but in the
enterprise it is still mostly transitioning existing applications.
The front office is leading the way with sales and marketing at 51%
adoption, customer service, and analytics both at 43% adoption.
IaaS and PaaS Adoption Reaching A Tipping Point
56% of businesses are using Infrastructure-as-a-Service (IaaS)
technologies to harness elastic computing resources.
41% of businesses are using Platform-as-a-Service (PaaS) technologies
to prototype and develop new applications.
Data Wants To Be Bigger In The Cloud
Two-thirds of respondents believe their data will come to reside in
some form of cloud over the next two years as bigger data needs
consolidation, and collaboration & creation go online.
Transition To Cloud - The First Cloud Front
"This wave of cloud computing that's revenue and new-business driven is
good news for long-suffering IT execs," said David Card, Vice President
of Gigaom Research. "If they can offload tedious but necessary
cost-center functions, and refocus resources on cloud-driven new
business, they might be able to retake their seat at the C-table."
"Even though it's largely just a transition of existing apps, the first
cloud front has rolled in confidently each year as existing applications
transition to the cloud and are adopted as SaaS solutions. Cloud is now
integral to business with 45% of executives saying they currently or
plan to run their business in the cloud," said Michael Skok, General
Partner at North Bridge Venture partners.
Transformation In The Cloud - The Second Cloud Front
"With over 11,000 Cloud Services / APIs, and developer adoption of IaaS
at 56% and PaaS at 46% respectively we are going to begin seeing the
birth of new, re-imagined, cloud-native applications," said Skok. "These
applications, which are only possible in the cloud, will result
in an order of magnitude greater value creation than the first cloud
front. This second cloud front will be transformative," Skok continued.
For more about this second cloud front please visit the "2014
Future of Cloud Computing" results page.
Data Wants To Be Bigger In The Cloud
"If you get your head out of the sand and into the clouds you'll see the
explosion of cloud-created data. It's not just big data, it's exhaustive
data as everything from clickstreams to commerce and personal cloud
lockers create exabytes of data. According to Cisco, personal,
cloud-carried data alone is estimated to grow from 1.7 exabytes in 2012
to 20 exabytes by 2017," said Skok.
Cloud Drivers & Inhibitors
Over the last few years, the drivers for cloud adoption have remained
constant with agility, cost and scalability as the top three. One area
that has moved up the agenda as a driver though is that companies are
increasingly moving workloads to the cloud to switch CapEx for OpEx.
This is especially true for large companies with more than 5,000
On the inhibitor front, security continues to be a strong barrier with
49% of respondents concerned about how secure their data is in the
cloud. Privacy concerns also rose, once again, to 31% in 2014 as
increased tension manifested itself between the desire for anonymity and
the convenience and utility of personalization. This is an area for
vendors and enterprises to distinguish themselves as faithful custodians
of personal data and engendering trust.
Of note, interoperability as an inhibitor saw a significant decrease
from 27% last year to 17% in 2014 with greater attention being paid to
issues like data portability. However, fear of vendor lock-in was still
29%, which put focus on open source cloud projects, like OpenStack, that
have grown significantly. For more information on the drivers and
inhibitors of cloud see this post.
The survey clearly demonstrates that SaaS is the strongest area of
adoption for cloud and is driving everything. Consequently, we will
conduct a second phase of the survey to explore the hot companies and
issues in this exciting area during the Fall 2014. If you would like to
be part of the collaboration, the conversation and potentially shape the
upcoming SaaS survey click here.
2014 Future of Cloud Computing Survey Collaborators:
1. 451 Research
5. Apperian (News - Alert)
6. Amazon Web Services
8. Black Duck
18. Cloud Elements
21. CloudHealth Technologies
27. Endurance International
28. Engine Yard
32. 451 Research
36. Internap (News - Alert)
48. Rackspace (News - Alert)
50. Red Hat
58. Silver Sky
View presentation: 2014
Future of Cloud Computing Survey Presentation
Read Michael Skok's blog posts: The
Second Cloud Front and Breaking
Down the Barriers to Cloud Adoption
Learn more about the survey: Future
of Cloud Computing Program
Follow Michael Skok: LinkedIn
Join the conversation: Future of Cloud on Twitter using hashtag
#futurecloud and/or @North_Bridge and @futureofcloud.
Tweet this: Just released http://slidesha.re/1uyXwFg industry's
deepest examination of cloud technology revolution to date, what's next
About North Bridge:
North Bridge Venture Partners and North Bridge Growth Equity are active
partners with entrepreneurs providing seed-to-growth financing for
innovative companies looking to disrupt big markets. With $3.5 billion
in capital currently under management, North Bridge partners, many
founders themselves, work with entrepreneurs to apply their expertise in
the creation, operation and scaling of market-leaders. The firm has
funded more than 170 companies creating many billions in market value.
Among those firms are Acquia, Actifio, Cool Planet, Couchbase,
Demandware, Mavenir Systems, Paydiant, Proto Labs, Reval and Starent
Networks. The firm has offices in Waltham, MA and Palo Alto (News - Alert), CA. To
learn more about North Bridge go to http://www.northbridge.com.
For more information on the Future of Cloud Computing program, visit: http://mjskok.com/resources/cloud-computing.
Follow us at @North_Bridge.
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