Not So Fast: Startups Enjoy an Easier Path to Cloud, While Hybrid Might Be the Solution for Established Organizations

Which is right for your organization: Cloud, On-Premise Data Center or a Hybrid Solution?
Cloud, On-Premise or Hybrid?

A recent 451 Research survey of enterprise IT users found that only 7% of IT spending is in the cloud. Over 50% of enterprises continue to use on-premise data centers, with 74% of workloads continuing to be housed in these on-premise facilities. There are plenty of newer companies that were “born in the cloud”, but even more large organizations that are finding reasons for the vast majority of their workloads to remain in more traditional data center environments.

While cloud is certainly a growth area, and many startups are entirely cloud-based, the issue of security and control continues to slow cloud adoption for established companies. For many technologists, there is a growing comfort level with the security services and products designed for the cloud. But there are certain verticals that are adjusting their IT infrastructure strategy in a more deliberate fashion, with the banking and investing world understandably hesitant to move mission critical operations to public cloud providers. For many such firms, their outsourcing largely continues in the direction of colocation arrangements with multi-tenant data centers, not the public cloud.

Legacy applications are also slowing cloud adoption for established organizations. It is no easy process to migrate many of these applications. As most are architected for more traditional data center environments, it is logical to avoid migrating them into a cloud environment.

A hybrid solution is most sensible in many instances. Blending cloud and traditional data center offerings provides an opportunity to house applications in the environment where they will most likely thrive. The financial and operational advantages of outsourcing can be obtained via leasing in multi-tenant data centers. Frequently, the infrastructure in a public colocation facility takes the form of a private cloud. Direct connections to public cloud providers from many colocation providers add to the options for a hybrid solution.

We’re in the infant stages of cloud adoption. Public cloud market share will continue to grow, and grow rapidly. But many organizations will continue to find that full-scale cloud adoption is not the ideal strategy for them.




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