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Montash blog: Cloud – 2015 review and 2016 forecast

7/12/2015 by

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Investment in cloud computing continued to rise during 2015 as organisations aimed to replace out-dated on-premise technology, increase the speed of deployment, lower total cost of ownership and enable business continuity through the use of SaaS, PaaS and IaaS products from vendors such as Salesforce, Microsoft and IBM. Large enterprise organisations invested significantly more during the last twelve months compared to smaller businesses, with the average business spending $1.56 million on cloud services. However, there remains significant potential for higher investment as more than half of corporations are still identifying IT operations that could be hosted in the cloud, while 25% of IT budgets are set to be allocated to the cloud in 2016.

Seven out of ten organisations now have at least one application in the cloud – up from 57% in 2012. A further 16% are planning to use cloud-based applications before the end of next year, and 11% aim to do so within the next three years. In 2015, private cloud models led the way with a 61% share – ahead of public (58%) and hybrid (26%). Cloud migration was a hot topic for every business this year and IDG’s recent Enterprise Cloud Computing study showed that the most important factor to consider for potential migration candidates was security, with the importance of the app in day-to-day business being a close second. Three quarters of businesses also said the costs associated with migrating the app was important. Security remains a common trend for risk assessment, as it was also the top cloud adoption challenge for firms. The majority of CIOs revealed that vendors must strive to offer the best security measures in order to meet compliance requirements.

Forecast for 2016

Looking ahead to 2016, 90% of enterprises are planning to use APIs as part of their cloud strategy, with 58% aiming to integrate with storage components, portals, databases and message systems. Other APIs appearing in enterprise organisations during the next twelve months include network configurations (32%), workload management (20%) and connection of the application layer (48%). Enterprises are also predicted to increase their cloud service spend to $2.87 million. IDG’s “Cloud: The Technology Powerhouse” report highlighted the top five solutions that will be included in cloud strategies in 2016. These will be: Cloud management, optimisation and monitoring tools, cloud security management, compliance management, open source development tools and big data tools to drive analytics for cloud-based data.

This article has been written by Harry Glover - Cloud Consultant. Should you wish to discuss your Cloud recruitment requirements for 2016, please contact Harry Glover on: +44 (0)20 7014 0231 or send an email to harryg@montash.com

Montash is a multi-award winning global technology recruitment business. Specialising in permanent and contract positions across mid-senior appointments across a wide range of industry sectors and IT functions, including:

ERP Recruitment, BI & Data Recruitment, Information Security Recruitment, Enterprise Architecture & Strategy Recruitment , Energy Technology Recruitment, Demand IT and Business Engagement Recruitment, Digital and E-commerce Recruitment, Leadership Talent, Infrastructure and Service Delivery Recruitment, Project and Programme Delivery Recruitment.

Montash is headquartered in Old Street, London, in the heart of the technology hub. Montash has completed assignments in over 30 countries and has appointed technical professionals from board level to senior and mid management in permanent and contract roles.

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