There are already signs that CIOs see what needs to be done as they try to move forward. In October 2013, Gartner predicted that cloud computing would grow to represent the bulk of new IT spend by as soon as 2016.
As long as CIOs are being pushed to deliver more with less, it is clear that they need an alternative strategy for IT delivery. Outright IT ownership is burdensome administratively, leads to silos and lock-in, is expensive and inflexible, and prevents low-risk business experimentation. Cloud computing – if the right services are chosen – offers a much better way to keep technologies up to date, manage costs, and dynamically match resources to demand, with unprecedented flexibility.
IDC concurs that cloud services are rising rapidly up the IT agenda. In September 2013, it predicted that over the next 3-4 years public IT cloud services will have a compound annual growth rate (CAGR) of 23.5% - five times that of the IT industry as a whole.
[ Read more? This article is an extract from: Cloud Infrastructure Services in 2014 - A CIO's Guide ]
Expanding on the projections, Frank Gens, senior vice-president and chief analyst at IDC, noted that while the first wave of cloud services adoption had been focused on improving the efficiency of the IT department, over the next several years the primary driver for cloud adoption "will shift from economics to innovation as leading-edge companies invest in cloud services as the foundation for new competitive offerings .”
The emergence of cloud as the core for new 'business as a service' offerings, he said, will accelerate cloud adoption and dramatically raise the cloud model's strategic value beyond CIOs, to CxOs of all types.