80% of all IT budgets will be committed to cloud apps and solutions

More than 80% of the organizations surveyed in this recently published report (25 pp., PDF, opt-in) are now following a Cloud First strategy. They prefer to purchase applications as a service deployed in the Cloud over applications deployed on physical servers in their data center.

Those with a Cloud First strategy believe that their IT budgets will be 80% cloud services in less than 12 months, while those without such a strategy think it will be closer to 20 months with 15 months being the average. That’s remarkable [at least to me]. Clearly, trust and confidence in the Cloud has grown quickly.

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Cloud First is the reality. Most organizations want to migrate quickly to the Cloud. Source: Building Trust in a Cloudy Sky (see link above).

At frevvo, that’s very much in line with what we see. Customers mostly prefer our public cloud – even very large organizations. They’re less concerned about security and availability and more interested in practical issues like cost. That’s likely because incidents have decreased.

We also offer both Public and Private cloud. We’ve noticed too that customers increasingly perceive the benefits of public cloud surpassing private cloud, especially when it comes to cost. The TCO for Public Cloud is almost universally perceived as being hugely lower – sometimes to the point that customers expect public cloud services to be incredibly inexpensive.

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To us, it’s still a surprising number. 80% of the IT budget going to Cloud computing in just over 1 year. Clearly Cloud Computing has matured and is being adopted broadly.

Learn more about frevvo’s solutions by visiting our website where you’ll find several customer success stories. Explore some of the examples and contact us for more information.

Download the full report at Building Trust in a Cloudy Sky: The State of Cloud Adoption and Security (25 pp., PDF, opt-in).

 

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

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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.

Trust the Cloud to higher profits

Came across this Google-sponsored study, Trust in cloud technology and business performance: Reaping benefits from the cloud (PDF, no registration required) from The Economist Intelligence Unit (via Forbes/Louis Columbus). It’s based on a ten-country, multi-industry EIU survey of 452 senior executives and interviews with experts and is full of interesting insights:

An astounding 38% of I.T. at respondents’ organizations is cloud-based rising to 45% by 2019. Almost half of I.T. will be cloud-based by the end of the decade. And, the Cloud has already helped transform key areas such as time to market, greater agility and collaboration.
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Yet, while everyone is using Cloud, just 16% of respondents say their organization has a very high level of trust in the cloud and this level of trust is not growing quickly.

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The lack of trust is surprising when you consider the correlation between Cloud Trust and a wide range of key business outcomes from economic metrics such as Revenue, Profit & Share Price to non-financial ones like Agility, Collaboration & Innovation.

 

The conclusion is that Trust plays a key role. Cloud’s greatest benefits come from companies refashioning how they work and expand their capabilities by taking full advantage of the benefits and not from the low-hanging fruit of cost savings. Organizations with low trust are far from this transformation. Those with high trust are improving functional operations and profitability.

Hybrid Cloud Adoption has hit its stride

Rightscale just released their brand new 2016 State of the Cloud Survey with some interesting insights. It affirms what many other reports have concluded: Cloud Adoption is growing and

Hybrid Cloud is the preferred strategy in enterprises.

hybrid-201671% of companies are using hybrid cloud environments. It makes sense: for Cloud Apps to be truly useful, they need access to internal systems. That’s just common sense. We see our customers choosing hybrid cloud for many reasons but the most important one is:

Business processes running in the cloud are far more effective if they’re integrated with important data in business systems such as HR systems, databases and authentication systems.

These systems won’t go to the Cloud overnight for sure and maybe not for years. Hybrid Cloud is then obvious. If you’re a CIO, you can take an incremental approach and start seeing benefits quickly without having to move internal business systems and data wholesale to the cloud.

Our customers are increasingly taking advantage of this approach. We provide a Database Connector, secure Active Directory/LDAP support, Microsoft Azure AD, SAML for single sign on, a File Connector so you can save files to a network drive, and a Google Apps Connector so you can update a Google Sheet and/or upload files to Google Drive.

 

Visit our website to learn more and sign up for a free 30-day trial.

CFOs optimistic about 2016 but concerned about manual, inefficient processes

cfo-concernsTD Bank recently released their fifth annual CFO survey of 300 senior finance executives with some super-interesting information. The good news is that most CFOs (69%) are optimistic about their company’s performance in 2016 vs 2015 and 61% intend to increase capital spending in 2016 particularly on technology (58%). But they have significant concerns about process inefficiencies both in day-to-day operations as well as long term performance.

It’s 2016! Every organization deals with routine financial processes like invoice processing, expense reports, sales orders, and purchase requisitions. There’s simply no excuse for outdated, manual systems that cause delays in cash-flow, infrastructure investments and responsiveness. With affordable, cloud-based workflow products for financial process automation, there’s no need to deal with printing PDF sales orders for signatures, correcting Excel-based expense reports, or tracking down approvals in email.

cfo-spendingFrom procure-to-pay, to order-to-cash, expense reporting and more – we’ve got financial process automation covered. frevvo’s solutions offer complete functionality coupled with a solid understanding of best practices in financial process automation. We can help you understand the value that efficient, mature and fully automated processes will bring to your business.

Check out TD Bank’s Survey and Infographic. Learn more by visiting our website. Explore some of the examples, read customer success stories and contact us for more details.

Cloud is moving UP the value chain

cloud3Cloud has obviously become ubiquitous. As we saw in Verizon’s Enterprise Cloud 2016 report, there isn’t much advantage anymore to simply using cloud.

Much of the initial value of cloud came from unplugging traditional data centers and eliminating hardware. Organizations now simply click a few buttons and presto! you have new servers. It’s easy to quantify this value – the costs of servers, the time to setup and maintain them as well as physical data centers etc. But everyone’s doing it now.

What about the future? How will cloud allow us to tackle far more complex challenges? As cloud technology advances, early adopters are already realizing new kinds of value from:

  • Automation and the resulting efficiency
  • Business Agility – focus on customers and new opportunities rather than wasting time on chasing down signatures and figuring out how data is stored.

Beyond hardware and data centers, cloud environments enable efficiencies reaching further up the stack than ever before. Managed Service Providers can automatically monitor production systems and perform administration tasks – you pay only for the level of service you need for each system and scale up/down in real time. On the DevOps front, cloud enables a more continuous model again by automating administration. The result is quicker release cycles and higher quality systems.

Further up the stack, Cloud is a key enabler for reengineering and automating business processes on mobile devices. When everyday approvals such as Purchase Orders, Employee On-Boarding, Patient Referrals etc. are digital, you’ll free employees from tedious, time-wasting tasks like tracking down approvals and let them focus on customers. More importantly, they’ll be able to react quickly to take advantage of new opportunities. A potential game-changer for your organization.

Watch a 4.5 minute video

Going even further, once you have this kind of automation enabled by cloud, you’ll be able to take advantage of business insights and intelligence to identify the bottlenecks, streamline operations. Even more important, with predictive analytics, you might learn what you should be doing before you need it rather than simply being reactive.

Cloud-based automation is the first step in the feedback loop you need to drive business strategy and make correct business decisions or risk being left behind.

Verizon: Using the cloud is now just “table stakes”

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Everyone’s doing it

This, according to Verizon’s State of the Market: Enterprise Cloud 2016 report (no signup required). 84% of Verizon’s enterprise-level cloud customers said their use of the cloud increased in the past year. Almost 100% of companies are using cloud in some formScreen Shot 2015-11-20 at 2.42.13 PM.

As a result, simply using the cloud isn’t that big a deal. Only 16% said that simply being in the cloud gives their company a significant advantage over competitors, down from 30% a year ago. Put another way: It’s not just the technology, it’s what you do with it.

The Pragmatists are the true believers

As the report says, the majority of companies are pragmatists. They’re moving things to the cloud incrementally – slowly knitting together enterprise-class infrastructure using standard cloud components tied together in a variety of ways. These companies are the true believers. They have existing applications but they’re so sure of the benefits of cloud that they’re rewriting the rulebook.

Hybrid cloud is now the preferred, mainstream solution

Screen Shot 2015-11-20 at 2.42.43 PMCompanies, especially large ones, just have legacy infrastructure. Asking them to move it all to the cloud is a non-starter. Combining public cloud, private cloud and existing on-premise systems (i.e. Hybrid Cloud) is the only pragmatic solution. While it’s complex, the technology is solid and the allure of transformative changes like new customer experiences, and business-agility benefits is impossible to resist. Many companies are turning to Managed Service Providers [such as Verizon Enterprise ;-)] to help build and manage their own customized environment.

 

Re-engineering business processes [on-demand]Screen Shot 2015-11-20 at 2.45.05 PM

So, if everyone’s doing it, how can you gain significant advantage from the cloud? Again, it’s what you do with it. It’s when you use cloud-based solutions integrated with existing infrastructure to deliver new customer experiences (e.g. new ways to interact with customers on mobile devices), faster responses (employees can act anytime, anywhere and from any device) and business agility (roll out new initiatives in response to changing market conditions).

Put another way: use cloud to make sure your employees are doing the right thing at the right time instead of wasting time correcting errors, chasing down approvals from managers etc. Let them focus on customers rather than getting bogged down in internal I.T.

Security

Finally, there’s always the elephant in the room. How secure is all this Screen Shot 2015-11-20 at 2.56.26 PMstuff? The evidence is that
Cloud is now seen as being at least as reliable and secure as traditional delivery models. So, while it’s important to keep an eye on security, the chances are your data is perfectly safe [and probably safer] in the cloud.

Interesting in finding out more? Visit our website to and see how customers are already using frevvo’s public and private cloud solutions to transform everyday business processes.