Public Cloud Adoption on Solid Ground: Is ROI Unstable?

Grazed from MidsizeInsider. Author: Doug Bonderud.

Public cloud adoption is on the rise. This is not surprising news for midsize IT professionals who have kept a close eye on the maturing cloud market, fielded questions from curious C-suite executives and watched the development of "shadow IT" users within company walls. So why the upswing? Lowered costs and improved uptime account for much of this public interest, with both tied together by a third component: Return on investment (ROI). However, cloud technologies do not operate under the same rules as traditional hardware and software deployments. Is traditional ROI ground becoming unstable?

Not Exactly Shocking

Reporting on a recent RightScale research report, GigaOm notes that it is relatively unsurprising to discover that more and more companies are choosing the public cloud. Almost 90 percent of the enterprise and midsize companies surveyed said that they use public cloud services to power some facet of their organization, and author Barb Darrow argues that the number is probably closer to 100 percent if unsanctioned use of the cloud were to be included…

The survey also found that 74 percent of businesses were using a hybrid cloud strategy to strike a balance between scalable resources and data control. Big cloud vendors have been busy slashing prices and talking up their versions of distributed computing, making the survey results more validation than revelation. As the market moves from unique to ubiquitous, however, how do companies define the value of these clouds?…

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