Cloud Computing Spending to Rise in 2017

By: Jeff Bertolucci| - Leave a comment

According to Clutch’s second annual Cloud Computing Survey, businesses in 2017 are much more comfortable with the cloud, less worried about cloud security and more likely to invest in the technology. These findings reflect responses from more than 280 IT professionals at U.S. businesses that use a cloud service.

Cloud Computing Spending Spree

The study found 67 percent of U.S. businesses plan to increase their cloud spending this year. Almost half expect cloud expenditures to rise from 11 to 30 percent, and nearly one in five say their cloud spending will soar more than 30 percent. Just 8 percent of respondents plan to spend less on the cloud in 2017.

According to Clutch, business leaders no longer view the cloud as merely an option to traditional on-premise solutions but rather as the next step forward in data management and storage.

“Cloud is the new normal. When businesses need to evaluate new solutions or need to do a hardware refresh on existing solutions, cloud is generally the first option. Cloud is the go-to solution to figure out how to do that,” Jeremy Przygode, CEO of Stratalux, an Amazon Web Services consultant and service provider, told Clutch.

Increased Trust in Cloud Security

According to the majority of survey respondents, security is the top benefit of the cloud. This represents a significant shift in opinion from previous years, when business leaders were highly skeptical of cloud security.

Why the change? As cloud computing has advanced, so has its security — which was often poorly implemented in early cloud solutions, the study notes.

“Only the most basic of security features were built into the cloud,” says Przygode. “It really didn’t have a lot of the feature sets and functionality that you can find today.”

By comparison, modern cloud offerings offer strong security, particularly when it comes to protecting physical property and online infrastructure. Things aren’t perfect, though. Cloud providers have considerably less control over data and access security, as application-level protections are typically the users’ responsibility.

Private Cloud Still Reigns

Of the three types of cloud deployment — private, public and hybrid — private is used by 68 percent of respondents, making it far more popular than either hybrid (47 percent) or public (37 percent). This will likely change, however, as businesses grow more comfortable with hybrid and public offerings, cloud experts say.

In a private cloud, services and infrastructure are on a private network, with the data center architecture provided by the cloud company. In a public cloud, all services and infrastructure are hosted off-site by the cloud provider.

A hybrid solution, a combination of public and private, is gaining ground. Over 80 percent of respondents that do not currently use a hybrid cloud are exploring it for future use, the survey found.

In a recent IBM survey, more than half of executives said they use a hybrid environment in order to lower their total cost of ownership. By passing the costs of facility maintenance, power and other expenses along to the cloud provider, companies avoid expensive hardware upgrades and software licenses, enabling greater flexibility and scalability.

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About The Author

Jeff Bertolucci

News Writer

Jeff Bertolucci is a Los Angeles-based journalist specializing in technology, digital media, and education. His work has appeared in Kiplinger's Personal Finance, InformationWeek, PCWorld, Macworld, The Saturday Evening Post, The Los Angeles Times and many other publications.