Cloud computing ‘number two’ priority for CIOs, says IDC

  • Lisa Banks (Unknown Publication)
  • 30 August, 2010 04:37

A majority of Australian CIOs are moving towards the cloud at a rapid rate, with cost effectiveness and reduced infrastructure being top-of-mind for IT leaders looking at SaaS.

IDC released its latest VMware-sponsored cloud computing research in Sydney this week. VMware managing director, Paul Harapin, said the survey results indicated flexibility was a key reason CIOs were looking at cloud.

“Efficient use of technology was one theme that emerged when we asked why people are using cloud computing. Agility and control were other key reasons, as was self-service, the ability to control use and freedom of choice," he said.

“In both the public and private cloud sectors, cloud computing is an enabler and allows us to use our IT infrastructure better. You can save costs and we need to reduce IT spending. Cloud computing can improve the overall IT operating environment,” he said.

The research is based on 326 phone interviews in Australia and 100 in New Zealand conducted between March and May of this year with CIOs and IT managers in companies of varying sizes being asked about public and private cloud adoption. Harapin said a huge shift in thinking has emerged around cloud in the past 12 months.

“Cloud services have shifted from a year ago. We did a focus group around 12 months ago and they pretty much took the mickey out of cloud. It was seen as unrealistic and CIOs weren’t considering it. What’s even more of a surprise is that in a short period of 12 months, we’ve seen cloud go from a bit of a joke to a number two priority on the plate of CIOs today, and a very serious consideration that they are taking on board,” he said.

About 70 per cent of the CIOs surveyed are investing in private cloud, while public cloud adoption is becoming prominent due to a desire for less infrastructure.

“If we take a look at the public cloud results, we realise public cloud adoption allows companies to have the capacity to free up space in the internal infrastructure of the businesses,” Harapin said.

The research also found the CIO is generally the key initiator behind cloud adoption, but CEOs are taking a more proactive interest in the movement.

“The CIO is the primary initiator in both the public and private clouds, but what is interesting is that the CEO, managing director and board takes a much more proactive interest in public cloud than most other technology areas.

“Why? Organisations are talking about the savings being made through cloud and this is resonating with the board and are driving down to the CIO on how do we do this internally?,” Harapin said.