90% of US firms to increase or maintain annual spend on Cloud Computing in 2016 – report




The majority of enterprises in the US plan to increase their spending on cloud computing by as much as 50 per cent in 2016, according to a new study conducted by Clutch, a leading B2B research firm.

At the same time, nearly 30 per cent will maintain their current spending, and only 6 per cent will reduce their cloud computing budget. This spending pattern indicates a growth opportunity for cloud service providers in the enterprise market.

Clutch surveyed 300 IT professionals who work at medium and large enterprises use a full-service cloud computing platform and found that 47 per cent identified increased efficiency as the main benefit of cloud computing.

Analysts confirm that the value enterprises derive from cloud infrastructure directly influences spending patterns.

“Spending on the Cloud has increased because companies realize they are getting a lot of value,” said Jason Reichl, CEO of Go Nimbly. “The Cloud is building ROI [return on investment] faster and with better business accuracy, so companies are willing to reinvest in it every year.”

The highest priority cited for enterprise cloud usage is file storage, at 70 per cent, followed by backup and disaster recovery (62 per cent), application deployment (51 per cent), and application development and testing (46 per cent).

The survey suggests that cloud service providers can appeal to enterprises by leveraging features that correspond to these prioritized tasks.

“The ROI of file storage on the Cloud is pretty straight-forward. Every company needs file storage,” said Duane Tharp, vice president of technical sales and services at Cloud-Elements. “The ease of adopting the Cloud for file storage needs enables rapid adoption in this space as opposed to other use cases for the Cloud.”

Clutch’s enterprise cloud computing survey included 300 enterprises with more than 100 employees. The study also measured the cloud computing services used and the cloud infrastructure implementation processes practiced.

Clutch is a Washington, DC-based B2B research firm that identifies top service providers and solutions firms that deliver results for their clients. The Clutch methodology is an innovative research process melding the best of traditional B2B research and newer consumer review services.

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