Public cloud services cannibalize, drive IT spending

While all forms of the cloud are garnering more attention today than they had in the past, Infrastructure as a Service, often considered the most basic form of the cloud, is gaining momentum and has moved past the initial test and development stages in most organizations.

This was highlighted in a recent report by Gartner, which noted that as the demand for public cloud accelerates, the technology is simultaneously deteriorating and driving IT spending in data centers around the world.

"At the same time, public cloud adoption offers service providers the opportunity to accelerate externalization of spending for the non-public cloud workloads and IT operations and service management responsibilities in tandem with clients pursuing a public cloud initiative," said Bryan Britz, research director at Gartner.

Citing a recent study of more than 550 organizations by the market research firm, Gartner analysts revealed that more decision-makers are moving away from traditional risk-free IaaS pilot programs and launching full-scale deployments. Many respondents said their use of IaaS emphasizes the importance of having a cloud infrastructure in today's unpredictable and potentially unstable business world.

How are the other cloud models making out?
While IaaS is gaining momentum, Software and Platform as a Service are also gaining ground in the private sector as decision-makers recognize the need for cloud services in today's highly competitive corporate environment. SaaS, in particular, is being adopted more frequently by enterprises, while PaaS cloud models are being implemented across the private sector, as it enables companies to support new business requirements.

This was highlighted in a separate report by IBM, which found that PaaS helps companies manage and utilize big data to their advantage, enabling them to be more productive and reactive to industry changes than rival firms not leveraging the technology. This potential has driven the demand for cloud services in new markets, leveling the playing field around the globe.

"Public cloud services are being adopted in markets that were previously not the target market for most IT services providers," Britz said.

As organizations see the potential of the cloud, decision-makers will continue to adopt the technology to give them a competitive advantage, reduce IT expenses and enhance data center operations. In today's business world, waiting too long to implement the cloud may be disastrous.

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