The Great Cloud Rush

11/03/2010

By Gary Steele, CEO, Proofpoint, Inc

The momentum around cloud computing is such that this year could go down in history as "the great cloud rush." In fact, IDC recently predicted that over the next five years, spending on cloud computing will accelerate, capturing 25% of IT spending growth in 2012 and nearly a third of growth the following year. This shift is coming from all corners of the IT world-from traditional hardware providers, to ISVs, to consulting shops that are extensively building out their cloud-consulting offerings.

The recession has catalyzed this trend, where customers have been forced...

...to reduce capital expenditures and get smarter with IT spending. Cloud computing powered services and Software-as-a-Service (SaaS) IT solutions are, quite rightly, perceived by many IT professionals as one of the most attractive routes to achieving dramatic cost savings. As an example, in Proofpoint and Osterman Research's recent survey of 220 email decision makers at large US enterprises , more than 40% of respondents said that they have or intend to deploy SaaS-based solutions for outbound email or HTTP security in order to reduce costs.

In the rush to meet this demand, many vendors who previously provided only on-premises software or appliance-based solutions are jumping on the cloud computing bandwagon. However, are vendors really grasping the business implications and embracing the changes required to deliver cloud services? Or are they simply re-positioning themselves as cloud providers? Just because you have a shovel and pan and are in gold country, does not make you a successful gold miner.

There are fundamental business changes to be made that often go overlooked until mistakes have been made. Many businesses are having to rethink their models and re-engineer their teams, as well as their products, from the ground up.... continued on page two >

 

 

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