Welcome!

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.

Latest Stories
In his session at Cloud Expo, Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, provideed economic scenarios that describe how the rapid adoption of software-defined everything including cloud services, SDDC and open networking will change GDP, industry growth, productivity and jobs. This session also included a drill down for several industries such as finance, social media, cloud service providers and pharmaceuticals.
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Infrastructure is widely available, but who’s managing inbound/outbound traffic? Data is created, stored, and managed online – who is protecting it and how? In his session at 19th Cloud Expo, Jaeson Yoo, SVP of Business Development at Penta Security Systems Inc., discussed how to keep any and all infrastructure clean, safe, and efficient by monitoring and filtering all malicious HTTP/HTTPS traffic at the OSI Layer 7. Stop attacks and web intruders before they can enter your network.
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Dave McCarthy, Director of Products at Bsquare Corporation; Alan Williamson, Principal...
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, discussed how VPaaS enables you to move fast, creating scalable video experiences that reach your aud...
Cloud Expo, Inc. has announced today that Andi Mann returns to 'DevOps at Cloud Expo 2017' as Conference Chair The @DevOpsSummit at Cloud Expo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited to help the great t...
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. In the eyes of many, containers are at the brink of becoming a pervasive technology in enterprise IT to accelerate application delivery. In this presentation, attendees learned about the: The transformation of IT to a DevOps, microservices, and container-based architecture What are containers and how DevOps practices can operate in a container-based environment A demonstration of how ...
"At ROHA we develop an app called Catcha. It was developed after we spent a year meeting with, talking to, interacting with senior citizens watching them use their smartphones and talking to them about how they use their smartphones so we could get to know their smartphone behavior," explained Dave Woods, Chief Innovation Officer at ROHA, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Phil Hombledal, Solution Architect at CollabNet, discussed how customers are able to achieve a level of transparency that e...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.