Join Newsletter
Trusted Business Advisors, Expert Technology Analysts

Taneja Blog

Taneja Blog / Cloud

Taneja Group Predictions for 2016 – Jeff Byrne, #1


Business issues begin to overtake technical concerns in companies’ decisions to move apps and data to the cloud.

In Taneja Group’s cloud research over the past eight years, we have seen users’ perceptions of the public cloud come a long way. Whereas most enterprises regarded Amazon Web Services as an unsanctioned development environment in 2008, today many see the public cloud as a viable platform for a growing number of business applications, as well as secondary use cases such as backup and DR. Though most companies are not yet running their business-critical apps in the cloud, a majority of organizations no longer rule out doing so in the future.

Over the years, users have tended to point to missing or inadequate technical capabilities as the primary reason NOT to move apps/data to the cloud. At the top of the list: concerns about data security, apps availability and performance, along with questions about maintaining compliance and control over IT services.

While these technical capabilities remain top concerns among IT managers, most companies we speak with no longer view them as barriers that rule out use of the cloud. We believe this softening of attitudes is due both to significant advances in cloud technologies and features, brought to life on platforms such as AWS and Microsoft Azure, and vastly improved user knowledge of what public cloud services have to offer. Most companies now have experience in developing and/or deploying apps in the cloud, and have figured out where to focus their efforts to achieve the greatest benefits.

While technical issues tended to dominate decision making in the early days of cloud adoption, today business concerns are playing an increasingly important role. Despite compelling $/hour and $/GB pricing that leads customers to consider the cloud in the first place, most customers have learned that deploying apps or data in the cloud is not always the most cost-effective approach. Comparative cost depends on a number of factors, such as the size and scope of compute instances, fluctuation in demand, app availability and performance requirements, and the incremental cost of in-house compute and storage resources. While there is no magic formula, a growing number of companies now estimate and trade off the cost of cloud vs. in-house approaches for each new project, using publicly available calculators, third party tools, or their own costing models. Companies are also becoming more savvy about data migration and portability issues as they consider new cloud deployments, to avoid or at least mitigate the potential cost and consequences of lock-in.

We believe these types of business considerations will play an increasingly prominent role in cloud deployment decisions, and as technical capabilities continue to improve, will eventually trump technical criteria as the driving factor. 


There are no comments to display. Scroll down to leave your own!


Leave a Comment

You must be logged in to comment. Click here to log in or register if you don't have an account.