Report: Companies leverage cloud computing to eliminate IT problems

In today's highly competitive business world, any IT problem could prove to be disastrous for an organization. For this reason, decision-makers are looking to improve legacy systems by embracing new technologies to enhance performance and productivity without substantially driving costs.

A new study by IDC highlighted this trend, noting that approximately 44 percent of U.S. executives plan to adopt cloud computing to eliminate existing IT challenges. Roughly the same number of decision-makers said they anticipate spending more on the cloud in the years to come.

"CEOs are ranked as most significant in the decision-making process on using clouds," said David Tapper, IDC vice president of outsourcing and offshore services market research. "The result is that buyers are viewing cloud as strategic in achieving critical business objectives for which CIOs and IT vendors must ensure that their cloud solutions help achieve these objectives and associated business benefits."

What can be achieved through the use of cloud?
The study revealed that the use of cloud hosting services yields a number of expectations in the private sector, as more than one-fourth of survey respondents said they hope the technology will reduce IT expenses. Another 21 percent said the cloud will help IT departments replace existing systems and 14 percent said it will enable greater flexibility.

IDC also revealed that companies will likely adopt cloud-based customer relationship management and collaboration solutions to enhance communications with internal and external parties.

"As the U.S. cloud services market continues to mature, enterprises find that overall business impact and productivity gains from the cloud are as significant as achieving cost reductions," Tapper said.

A separate report by Gartner echoed the growing cloud computing market, noting that the public cloud is forecast to generate roughly $109 billion in revenue by the end of this year. Analysts said the key to taking advantage of the growing industry is to understand the opportunity the technology presents and how a specific organization can leverage the tools to experience performance enhancements.

"The cloud services market is clearly a high-growth sector within the overall IT marketplace," said Ed Anderson, research director at Gartner.

As the cloud industry continues to expand, decision-makers will need to embrace the technology to eliminate legacy IT challenges and remain competitive, as neglecting to adapt will only make a company more vulnerable.

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