Submitted on Mon, 2016-07-25
By Upp Software

Cloud to Become Default Deployment Option by 2020

A majority of businesses will be running in the cloud by 2020. 

Research firm Gartner released a report projecting that more companies will be running in the cloud than not in less than four years. Gartner also points out that 30% of the 100 largest vendors’ new software acquisitions will be cloud-only by 2019.

 

All statistics point to the inevitability of a cloud-dominated marketplace in the next decade.

  • 73% of an organization’s IT will be running in the cloud by 2026. [A Passion for Research]

  • 83% of all data center traffic will be from the cloud by 2019. [Forbes]

  • Public cloud workloads will eclipse private clouds by 2019. [Forbes]

  • SaaS implementations will rise to 59%, compared to 28% IaaS, and 11% PaaS by 2019. [Forbes]

 

Many companies are now developing “cloud-first” and “cloud-only” policies as the cloud is increasingly viewed as the default software deployment option.
 

In the past, we have reported that early adopters are reaping huge returns on their cloud investments as the cost, flexibility and scalability benefits outweighed the shortcomings. Now the greatest concerns about cloud data security are becoming obsolete as more and more leaders look to the cloud to keep their data safe.

 

Here are some of the latest facts and figures regarding the current state of the cloud:
 

The Current State of Cloud Adoption

  • Cloud adoption is now at 95%, up from 93% in 2015. [RightScale]

  • Enterprise organizations use an average of 6 clouds. [RightScale]

  • 45% of cloud implementations are Software as a Service (SaaS - software), compared to 42% for Infrastructure as a Service (IaaS - processing, storage) and 13% Platform as a Service (PaaS — middleware, development environments, databases). [Forbes]

  • 50% of enterprises invest at least half of their IT budget in the cloud. [Forbes]

 

Security Issues are No Longer the Top Concern

  • Lack of resources and cloud expertise is now the top cloud challenge, overtaking security. [RightScale]

  • 64% say the cloud is more secure than older legacy systems. [Clutch]

  • 75% of cloud users add security measures beyond what the cloud service providers offer out-of-the-box. [Clutch]

 

Cloud Users Extremely Loyal, Look to Increase their Spending

  • 95% of cloud users intend to renew their contracts with their primary cloud and hosting providers. [Microsoft]

  • 38% of cloud users plan to increase spending with their primary cloud and hosting service providers when they renew their contracts. [Microsoft]

  • Contract terms are increasing from 24 months to as high as 60, with an average of 42 months. [Wall Street Journal]

  • 71% of cloud budgets are allocated to managed services, application hosting, and security services. [Microsoft]

 

The Cloud is Delivering Serious Cash

  • 30% of cloud users saw cost reductions of greater than 40% in two years. [Wall Street Journal]

  • Organizations can increase revenues between 4–10% by moving to the cloud. [CIO]

  • 84% of CIOs cut application costs by moving to the cloud. [State Tech]

  • Organizations save 21% annually by moving to the cloud. [State Tech]

 

Cloud Adoption in the Supply Chain to Skyrocket

  • 75% of warehouse management system users will move to the cloud by 2020. [Zebra]

  • 76% of supply chain organizations will increase spending on real-time location systems by 2020. [Zebra]

  • SaaS applications for the supply chain are growing by 20% annually. [Forbes]

  • 60% of suppliers see Electronic Data Interchange (EDI) and other automatic/scheduled communications as commonplace. [Zebra]

  • 76% of supply chain organizations will invest more on new technology that increases shipping volume. [Zebra]

 

For the supply chain industry, cloud adoption has lagged significantly behind other sectors. Warehouse Management Systems only account for 9% of all WMS implementations, despite cloud applications delivering much higher ROI. Forbes believes this lack of adoption is due in part to the inflexibility of an organization's technology.

Best-of-breed systems, like the irms|360 Enterprise® Cloud Warehouse Management System offer the best of both worlds, providing a higher return on investment, cost savings, and greater flexibility while providing seamless integration with your existing technology stack.

 

In just a few short years, cloud deployments will be the norm regardless of industry and organization size. The time for supply chain organizations to adopt the cloud is now. Those who modernize their IT infrastructure today have the opportunity to position themselves for success in the real-time, digital economy while those who fail to upgrade risk becoming obsolete. 

 



Register for a live tour of our Cloud Warehouse Management System

A breathtakingly easy experience for all users.
 
Get a sneak peek of the cloud WMS that has made complex warehousing processes easy to understand and effortless to execute. Download our new eBook today.


 

 


See The Future Now

Discover the Next Generation Cloud Warehouse Management System
Join us for a LIVE product tour
Every Thursday at 11:00 CT
 
 
 
 
 
 
Blog Type: 
IRMS WM Blog