AT A GLANCE

  • Research finds that database, email, and business applications are the three leading application hosting investments that companies will be making over the next two years
  • Within two years, 34% of companies expect to have 60% or more of their applications on a cloud platform
  • Security is the most common factor driving companies to move workloads to private clouds; other top reasons include better control by in-house IT teams and improved performance

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October 01, 2015

Happening in the Cloud

Recently, Microsoft commissioned a study by 451 Research LLC examining trends in the Managed Service Provider (MSP) and Cloud Service Provider (CSP) landscape. The research found that database, email, and business applications are the three leading application hosting investments that companies will be making in the next two years.

According to the study, companies expect to gain a wide range of benefits when moving to the cloud. Their expectations include improved technology quality, business growth, and improved availability.

Companies Expectations When Moving to Cloud

Companies Expectations When Moving to Cloud

Source: 451 Research, LLC

Within two years, 34 percent of companies expect to have 60 percent or more of their applications on a cloud platform.

Future Percent of Applications in Cloud by Department

Future Percent of Applications in Cloud by Department

Source: 451 Research, LLC

With regard to interoperability, 63 percent of all companies surveyed are running an on-premise private cloud with a hosted private cloud. According to the researchers, MSPs and CSPs need to excel at mastering cloud interoperability and integration technologies to keep pace with the variety of company needs in this area for the future.

Security is the most common factor driving companies to move workloads to private clouds. Other top reasons include better control by in-house IT teams and improved performance.

Private Cloud Migration Drivers

Private Cloud Migration Drivers

Source: 451 Research, LLC

Over the next two years, companies expect to make their largest investments in database, email and business application hosting. Other areas for future investment include business intelligence and data mining and big data.

Application Hosting Spending Over Next Two Years

Application Hosting Spending Over Next Two Years

Source: 451 Research, LLC

The study found that CIOs and CTOs are the most influential C-level executives for making purchasing decisions related to cloud-based application development and IT operations/administration apps. CEOs are the most influential regarding cloud-based marketing app adoption.

Stakeholder Decision Making Authority

Stakeholder Decision Making Authority

Source: 451 Research, LLC

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