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Cloud Shift Expected to Earmark $1 Trillion in IT Spending

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The cloud is growing in popularity in the digital world, and more businesses are taking advantage of cloud-computing strategies to stay relevant and competitive. The cloud is a network of servers that allows companies to provide services in an efficient and cost-effective way. At First Technology Solutions (FNTS), we are seeing an increasing number of companies leveraging server consolidations by moving to the cloud. Not embracing the cloud is becoming a competitive disadvantage for companies, and if they aren’t already using the cloud as part of their strategy, they are already behind one of the fastest growing IT trends.

Cloud-First World Infographic.pngGartner research predicts that the shift to the cloud will affect more than $1 trillion in IT spending in the next five years. When businesses move to the cloud, they will no longer have to invest in owning and operating their own costly hardware, such as servers.

According to Forbes, research from Nomura indicates that organizations use the Software as a Server (SaaS) cloud service model for 33 percent of their applications, and that is expected to increase to 56 percent in the next few years. SaaS is a web-based software distribution model in which a third-party provider hosts applications and makes them available to customers. 

Another popular cloud model is the deployment model, which consists of private, public and hybrid clouds. The public cloud can be an economical option for testing and development environments, while the private cloud remains the cloud model of choice to meet certain security and compliance requirements. The hybrid cloud option can be a combination of physical and virtual environments or the combination of private and public cloud options. There are multiple ways to take advantage of cloud technology, and choosing the right one will depend on the goals a business is hoping to accomplish. FNTS is a cloud technology partner, helping you decide the best cloud solution for your company strategy. 

The top two drivers of company spending are security and cloud computing, according to Nomura. In order to take advantage of the benefits of cloud integration, a company will need to be aware of the risks it is willing to take to meet its strategic objectives. Having a pre-defined risk posture that consists of security policies, procedures and controls is important in protecting a company from threats. Concerns about cloud security are increasing due to recent data breaches and outages that have resulted in lawsuits, settlements and millions of dollars in lost revenue. A company can minimize threats and vulnerabilities by strengthening its security controls, anticipating risks and developing solutions.

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A company can partner with a trusted cloud technology provider, such as FNTS, to manage its infrastructure. In most cases, companies will select a cloud technology provider to manage the physical components, infrastructure, network and virtualization. Businesses also can choose a cloud services provider to manage and maintain their operating systems in their cloud environments. Companies ultimately own the data, however with large cloud technology providers they can not always control where and how it is stored.. It is important for information security and risk management teams to be aligned with the objectives and security programs that a business has in place. The teams should work together to identify and address concerns, implement added safeguards and ensure the technical teams that are managing the day-to-day administration understand the company’s policies and procedures.At FNTS, our information security department works closely with your business on an ongoing basis to ensure all proposed solutions do not raise the overall risk posture of your organization. Other popular considerations include data control and configuration management.

While security is an important factor in choosing a cloud technology provider, businesses should also take the provider’s location, culture, pricing, customer support, response times and flexibility into account. Migrating to the cloud requires careful planning, thorough testing and a full assessment once complete. There is no one-size-fits-all solution, but with proper due diligence, securely operating in a customized cloud environment is possible. With the right partner, any enterprise can ensure all existing risk mitigation techniques are met or exceeded. At the same time, the benefits of operating in a cloud environment can be experienced.

If you found this information helpful and would like to learn more, download the CIO’s Guide to Implementing a Cloud Solution.
The CIO's Guide to Implementing a Cloud Solution