From now to 2016, the largest opportunities for public cloud providers lie in collaborative and cloud-native applications, while traditional workloads appear more in non-cloud and private cloud environments. Only about 25% of enterprise workloads are deployed in cloud environments today, but our study respondents estimate that 50% will move to the cloud in the next two years. During that time, private cloud shows higher expected adoption as a primary workload execution venue than hybrid and public cloud, but not for all workloads.
About 74% of large and midsize enterprises plan to use public cloud providers for cloud-native applications, and 45% will do the same for collaborative apps. Cloud-native apps often combine private and public data sources, such as databases and social media, to produce information-rich environments for customers. Collaborative apps include email/info sharing that enterprises may not want inside their firewalls. E-business hosting also presents public cloud providers with significant opportunities in the next two years, but with fewer commentators citing public cloud as a primary workload execution venue than for cloud-native and collaboration apps. Traditional workloads appear to be more suitable for non-cloud and private cloud, due to data-sensitivity and privacy concerns.
Currently, cloud-native and collaborative apps are the low-hanging fruit for public cloud providers, but there are opportunities in other areas as well. To maximize these opportunities, vendors should better understand considerations that large and midsize enterprises from different industry verticals have when it comes to moving specific workloads to the cloud.
Study respondents expressed the following considerations for using different execution venues for collaborative and cloud-native applications:
- “[Collaborative apps:] It could be cheaper for us now, seeing the cost savings. Also allows us to rapidly grow the environment – these are things that are quite low risk, if they’re down.” – LE, Financial Services
- “Office 365 – to simplify the environment and standardize operations.” – LE, Healthcare/Pharmaceuticals
- “That’s already moving out to the public cloud. Microsoft 365 and Citrix are the two main ones. That was an infrastructure decision they had talked about for quite a long time. A lot of it was not having to maintain capacity for that infrastructure, monitoring, uptime, everything else.” – LE, Consumer Goods/Retail
- “[Cloud-native apps:] Really because of features. Vendor is saying they support more features in their public hosted version rather than the on-premises version we’re using today that we want so we have to move to it.” – LE, Healthcare/Pharmaceuticals