OpenStack Journal Authors: Liz McMillan, Janakiram MSV, TJ Randall, Elizabeth White, Derek Weeks

News Feed Item

Industry’s Largest Cloud Computing Survey Reveals 5X Adoption of SaaS

North 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 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 employees.

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

2. Acquia

3. Actifio

4. Akamai

5. Apperian

6. Amazon Web Services

7. Backupify

8. Black Duck

9. Brightcove

10. Bromium

11. BTI

12. Canonical

13. Carbonite

14. Chef

15. Cirro

16. Cisco

17. Citrix

18. Cloud Elements

19. CloudBees

20. CoreDial

21. CloudHealth Technologies

22. CloudNow

23. CloudVolumes

24. Couchbase

25. Demandware

  26. Dyn

27. Endurance International

28. Engine Yard

29. Egenera

30. Equinix

31. Eucalyptus

32. 451 Research

33. Gravitant

34. Imprivata

35. Intel

36. Internap

37. Intuit

38. Jamcracker

39. MassTLC

40. Microsoft

41. Mimecast

42. Nasuni

43. Newforma

44. Open-Xchange

45. Pax8

46. Piston

47. Plexxi

48. Rackspace

49. Ramp

50. Red Hat

  51. Reval

52. Rift-IO

53. RightScale

54. Salsify

55. Saucelabs

56. Scribe

57. Signiant

58. Silver Sky

59. SnapLogic

60. 6fusion

61. Sharethrough

62. SpringCM

63. Stratus

64. SumoLogic

65. SurveyMonkey

66. THINKStrategies

67. TradeGecko

68. Unidesk

69. VDX

70. Verizon

71. Virtustream

72. WPEngine


Supporting Links:

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 and Twitter

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 - #futurecloud

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, 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.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
The Quantified Economy represents the total global addressable market (TAM) for IoT that, according to a recent IDC report, will grow to an unprecedented $1.3 trillion by 2019. With this the third wave of the Internet-global proliferation of connected devices, appliances and sensors is poised to take off in 2016. In his session at @ThingsExpo, David McLauchlan, CEO and co-founder of Buddy Platform, discussed how the ability to access and analyze the massive volume of streaming data from millio...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, will draw together recent research and lessons learned from emerging and established ...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
SYS-CON Events announced today that Streamlyzer will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Cloud based infrastructure deployment is becoming more and more appealing to customers, from Fortune 500 companies to SMEs due to its pay-as-you-go model. Enterprise storage vendors are able to reach out to these customers by integrating in cloud based deployments; this needs adaptability and interoperability of the products confirming to cloud standards such as OpenStack, CloudStack, or Azure. As compared to off the shelf commodity storage, enterprise storages by its reliability, high-availabil...
The IoT industry is now at a crossroads, between the fast-paced innovation of technologies and the pending mass adoption by global enterprises. The complexity of combining rapidly evolving technologies and the need to establish practices for market acceleration pose a strong challenge to global enterprises as well as IoT vendors. In his session at @ThingsExpo, Clark Smith, senior product manager for Numerex, will discuss how Numerex, as an experienced, established IoT provider, has embraced a ...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
In the next forty months – just over three years – businesses will undergo extraordinary changes. The exponential growth of digitization and machine learning will see a step function change in how businesses create value, satisfy customers, and outperform their competition. In the next forty months companies will take the actions that will see them get to the next level of the game called Capitalism. Or they won’t – game over. The winners of today and tomorrow think differently, follow different...
“Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. CloudBerry Backup is a leading cross-platform cloud backup and disaster recovery solution integrated with major public cloud services, such as Amazon Web Services, Microsoft Azure and Google Cloud Platform.
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.