North Bridge’s 2015 Survey Results Show Record Levels of Corporate Adoption Cloud Computing

North Bridge, a seed-to-growth venture capital firm, in partnership with research analyst firm Wikibon, has announced the results of their fifth annual Future of Cloud Computing Survey, which investigates trends in corporate cloud use on a yearly basis. Cloud adoption is now reflected throughout entire business operations.

The cloud has reached the point where businesses are no longer debating whether or not to use cloud, but how pervasively they will use it. North Bridge’s 2015 survey results highlight record levels of corporate adoption of cloud computing, both for business functions and in the more complicated IT areas, especially to run content management and application development in the cloud.

Key findings of this 2015 Cloud survey include:

  • wikibon-analysts-cloud-researchSignificant processing, systems of engagement and systems of insight are moving to the cloud –3 percent of sales and marketing, 79.9 percent of business analytics, 79.1 percent of customer service and 73.5 percent of HR & Payroll activities have transitioned to the cloud. The impact on HR is particularly noteworthy as in 2011, it was the third least likely sector to be disrupted by cloud computing. Further, 85.9 percent of web content management, 82.7 percent of communications, 80 percent of app development and 78.9 percent of disaster recovery are now cloud-based.
  • While business users have been a fan of cloud’s “ease of use, accessibility and scalability” since 2011, the importance of cloud agility has leapt from fourth to second in importance in the last five years.
  • Among all survey respondents, the top inhibitors to cloud adoption are security (45.2%), regulatory/compliance (36%), privacy (28.7%), lock-in (25.8%) and complexity (23.1%). Concerns regarding interoperability and reliability have fallen off significantly since 2011 (15.7% and 9.9% respectively in 2015).
  • Cost of cloud services is three times as likely to be a concern today versus five years ago.
  • Three quarters of company data in significant volumes is living in private or public clouds. However, company data in hybrid cloud systems is forecast to double over the next two years.
  • Corporate cloud computing strategies are focusing on public cloud (up 43.3%) and hybrid cloud (up 19.2%) while private cloud has taken a significant back seat (down 48.4%).
  • SaaS is the most pervasive cloud technology used today with a presence in 77.3 percent of all organizations, an increase of 9 percent since 2014. Accordingly, ROI expectations are high with 78 percent expecting to see results within three months. Fifty eight percent expect ROI in less than three months for PaaS services.
  • Among users taking the survey, the biggest factors preventing use of public cloud offerings are security (38.6%), privacy (29.8%) and expertise (22.8%).

“Deploying to public cloud and hybrid cloud are no longer ‘if’ questions, but ‘when,’” said Brian Gracely, Senior Cloud Analyst, Wikibon. “Wikibon forecasts that over the next 10 years, hybrid cloud will be the predominant model which will include one-third of IT spending on public cloud. The Future of Cloud data shows that businesses see cloud as a way for IT to deliver business agility for competitive advantage.”

Wikibon is a community of business technology practitioners founded to deliver the most actionable and real-time information available in the marketplace. The Wikibon analyst team comprises expertise cutting across all facets of business technology, with a cross-functional focus on cloud, big data/analytics and infrastructure.

North Bridge has funded more than 170 companies creating many billions in market value. Among those firms are Acquia, Actifio, Cool Planet, Couchbase, Demandware, Mavenir Systems, Paydiant, Proto Labs, Reval and Starent Networks. The venture capital firm is based in Waltham, MA.

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