Goldman Sachs Predicts Where To Find The End Of The Rainbow

Thu, 04/14/2011 - 13:25 — Anonymous

A recent report by Goldman Sachs on the future of Cloud Computing predicts a shift toward on-demand IT cloud services is now inevitable.

The report asserts that the recent economic downturn has lead to a substantial increase in the adoption of software as a service or cloud based services and applications, especially amongst the SMB market as they look for cheaper sources for business critical applications.

40 percent of respondents to the survey indicated that they were more likely to adopt a SaaS solution in times of a weak economic climate, chiefly due to the total cost of ownership (TCO) benefits available.

 
The report also found that:
 
“An 'SaaS first' policy is being enacted in the majority of small-to-medium sized businesses. Goldman's survey highlights that 58 percent of respondents always consider a SaaS option when making an application purchase decision. Overall, 39 percent prefer a SaaS option, if available.”
 
Amazon.com is used by 67 percent of the survey respondents. It is clearly the out-in-front leader, despite being a 'newcomer' to enterprise IT. For internal clouds, VMware's leadership remains pronounced, with 83 percent of respondents using its virtualization technology. Platform as a service layers are gaining momentum, dominated by Amazon's Elastic Compute Cloud, or EC2, service, with 77 percent of respondents choosing EC2 as a preferred partner, way ahead of Google.
 
Most people with a vested interest in technology would agree that the cloud phenomenon will continue to grow at an exponential rate. What will be interesting is the perceived future migration of companies from public cloud solutions to private, which walk the thin line between a corporate firewall and the internet.

 

 

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