Although enterprise spend on public cloud services will remain a small proportion of overall IT spend (currently 3% according to 451 Group), it still represents a $15 billion revenue opportunity through 2015 (even bigger if some analysts are to be believed). Furthermore, there is a growing body of evidence that shows an ever increasing number of organisations are on the path to purposeful public cloud adoption.

Over one quarter of all respondents to a recent 451 Group survey said that they were planning a route to public cloud adoption. This is great news for cloud service vendors. These vendors should start to see a clearer path for revenue growth. However, to capitalise on the growth opportunity, the cloud service vendor has to adapt to the emergent demand of the enterprise customer.

Cloud service vendors have to realise that enterprises will want it ‘their way’ which is likely to look very similar to the ‘current way’. This means that they will request a degree of autonomy and control over their use of public clouds. This includes self-service provisioning, customisation, control over user specific access privileges as well as consumption and cost.

Organisations listed the following top five concerns in a 451 Group survey:

1. Management
Cloud orchestration is the critical tool needed to overcome this concern. With cloud orchestration, management of physical and virtual resources in granular details is possible.

2. Perception and Internal Resistance
The service and user experience should be customised to map onto organisational and customer requirements. This will reduce resistance and increase adoption by removing existing pain points and giving increased responsiveness, agility and autonomy.

3. Pricing/Budget
Always a valid concern. The initial investment to provide public cloud services to the enterprise for the cloud service vendor should be low. However, the cloud service vendor should have the ability to scale with adoption. Furthermore, commodity hardware can be used to ensure that overall CAPEX costs remain low.

4. Internal Resources/Expertise
A valid concern if you need to build your cloud capability from a kitbag of components. Not a valid concern if you adopt a complete cloud orchestration solution that allows you to build, launch, meter, bill and maintain your cloud services within a day (if not hours).

5. Complexity
We follow the email test here at Flexiant. If it is quicker to email someone to get something done than to do it yourself, it is overly complex. With that design philosophy in mind all of the major workflow requirements and jobs to be done with respect to building and using public cloud services should be simplified through cloud orchestration.

Security was listed as a distant sixth concern which is a major shift in market perception and hopefully recognition that for the most part this is a minor issue.

Of the top five concerns though, all can be solved with cloud orchestration. However, not all cloud orchestration solutions are the same and can provide the functionality required to address these concerns. Take a look at Flexiant Cloud Orchestrator. I think you’ll find it solves all of these concerns while addressing new revenue and growth opportunities for cloud service vendors.

Cloud Adoption, Great Expectations – A Cloudscape Report from 451 Group, September 2012

 







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