McKinsey sees Large Enterprises adopting Cloud faster

McKinsey recent global IT-as-a-Service (ITaaS) Cloud and Enterprise Cloud Infrastructure surveys found that the shift to the cloud is accelerating, with large enterprises becoming a major driver of growth for cloud environments. In the next three years, enterprises will make a fundamental shift from building IT to consuming IT.

A summary of both surveys is at IT as a service: From build to consume (free, no registration required). The key takeaways are

Enterprises are reducing on-premise deployment

In 2015, 77% of enterprises used traditional IT infrastructure for at least one workload; by 2018, this will drop to 43%. Conversely all varieties of Cloud deployments will increase

mckinsey-1

Large enterprises are moving to Cloud far faster than before

mckinsey-2A deeper look into cloud adoption shows a significant shift coming in large enterprises. Large enterprises are finally catching up to small/midsize enterprises when it comes to cloud deployments. This portends significant headwinds for traditional IT and a boon for cloud providers since large/midsize enterprises form the majority of revenue/profits for IT vendors.

Cost is neither the primary driver nor barrier to cloud acceptance

Enterprises consider time to market and quality as the premier drivers for Cloud solutions outweighing any cost benefits. Security and compliance are the primary barriers to broad adoption. Cost comes in third but interoperability with on-premise private cloud solutions is also an important criterion.

Read more at McKinsey’s website.

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