The market for cloud computing can now best be described as "married with children" in terms of its evolution. Nearly all organizations have cloud strategies and are at various stages of migrating to the use of cloud-based services. Ovum's recent ICT Enterprise Insights (ICTEI) cloud survey for 2016/17 reveals that while past adoption has been similar across respondents, future adoption will vary by vertical or geography. The data identified that three workloads show a degree of market maturity in all regions, with roughly 50% of respondents using them in the cloud: email and messaging, disaster recovery (DR) and backup, and websites for online ordering, etc.
Cloud adoption was uniform in terms of the workload types, but is now diversifying
Globally, the adoption of these three cloud workloads has been uniform, but the migration of workloads to the cloud in 2017 will diverge, which is typical for maturing markets where market expansion is driven by local needs that will then percolate out to other regions/verticals. According to Ovum's ICTEI cloud survey for 2016/17, the market in Asia for public cloud is expanding the fastest, with 70% of respondents reporting that they will be using public cloud by 2018. This compares to just over 50% in North America, which is a much bigger and more mature cloud market.
Deeper analysis of the ICTEI data reveals a more detailed view of this fragmentation. For example, consumer-focused or customer-facing verticals appear to be leading the drive to adopt cloud workloads in 2017. The most popular workload by vertical being moved to the cloud is mobile application stores, with the retail sector leading the way. Ovum's ICTEI cloud survey shows that 37% of retail customers expect to move mobile app stores to the cloud in 2017, compared to 27% of public sector organizations. However, the overall leading workload across all verticals being moved to the cloud in 2017 is application development and testing, with nearly 33% of respondents identifying it as the prime workload for migration to the cloud.
The ICTEI cloud survey clearly shows that cloud computing is being adopted globally, but that the predominant approach differs between countries and verticals, dependent on multiple factors, such as data sovereignty laws, government policy on the use of IT, and how mature the market is in the use of cloud computing. The Ovum data can be analyzed by country, vertical, or organizational size (by revenue or number of employees). Understanding these patterns of adoption will shape how cloud providers invest in regions/countries in 2017/18.
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