Blue Bell, PA – June 19, 2014 – CoreDial, LLC, a leading cloud communications software and services provider, today announced its role as a collaborator in releasing the results of the fourth annual Future of Cloud Computing Survey, conducted by http://www.nbvp.com, Gigaom Research and supported by over 70 other collaborating organizations.
This year’s survey is the largest to date, and is the industry’s deepest and broadest examination of the cloud technology revolution. It analyzed the inhibitors and drivers behind cloud adoption, separating the hype surrounding the cloud from genuine industry trends and real world cases across a sample of 1358 respondents. See the complete findings slideshow here: 2014 Future of Cloud Computing survey, along with analysis and commentary on the results here: [http://mjskok.com/resource/2014-future-cloud-computing-4th-annual-survey-results].
“The Future of Cloud Computing survey confirms what we are seeing in the market and hearing from our partners. Moving communications services into the cloud is a logical step for most enterprises. The cloud offers a cost-effective, efficient and future-proof way to serve their communications needs.” Said Alan Rihm, CEO of CoreDial. “We believe that this is why, as the survey reveals, over the next 12-24 months there will be an upswing in cloud communications adoption and the market will continue its rapid growth. There is a long-term opportunity in cloud communications and what we see today is only the beginning of what will be a sustained revenue for service providers.”
“With four years of data, we’re now really beginning to see some interesting trends, such as the five-fold increase in SaaS adoption to 74% and the nearly six-fold increase in PaaS adoption to 41%.” said Michael Skok, founder of the Future of Cloud program and General Partner, North Bridge Venture Partners.
Select Highlights from the Survey Data:
Majority of business will use cloud computing for communications in next 2 years
- 54% of respondents said that they are likely to use cloud computing resources for their communications over the next two years; the second most likely IT application to have a presence in the cloud after web presence (63%).
Scalability is top driver for cloud adoption:
- The top driver for the adoption of cloud computing is the ability for businesses to scale their operations, with 54% of respondents listing it as a driver, followed by cost (53%) and business agility (52%).
Cloud Adoption Is Strategic
- 49% of respondents in this year’s survey are using cloud to fuel revenue generation or new product creation.
- 45% of businesses say they already, or plan to, run their company from the cloud showing how integral cloud is to business.
SaaS Adoption Has More Than Quintupled
- From 11% adoption in 2011 to 74% in this year’s survey, but in the enterprise it is still mostly transitioning existing applications.
- The front office is leading the way with sales and marketing at 51% adoption, customer service, and analytics both at 43% adoption.
Transition To Cloud – The First Cloud Front
“This wave of cloud computing that’s revenue and new business driven is good news for long-suffering IT execs, said David Card, Vice President of Gigaom Research. “If they can offload tedious but necessary cost-center functions, and refocus resources on cloud-driven new business, they might be able to retake their seat at the C-table.”
“Even though it’s largely just a transition of existing apps, the first cloud front has rolled in confidently each year as existing applications transition to the cloud and are adopted as SaaS solutions. Cloud is now integral to business with 45% of executives saying they currently or plan to run their business in the cloud,” said Michael Skok, General Partner at North Bridge Venture partners.
Transformation In The Cloud – The Second Cloud Front
“With over 11,000 Cloud Services / APIs, and developer adoption of IaaS at 56% and PaaS at 46% respectively we are going to begin seeing the birth of new, re-imagined, cloud-native applications,” said Skok. “These applications, which are only possible in the cloud, will result in an order of magnitude greater value creation than the first cloud front. This second cloud front will be transformative,” Skok continued.
For more about this second cloud front please visit the “2014 Future of Cloud Computing” results page.
Data Wants To Be Bigger In The Cloud
“If you get your head out of the sand and into the clouds you’ll see the explosion of cloud-created data. It’s not just big data it’s exhaustive data, as everything from clickstreams to commerce and personal cloud lockers create exabytes of data. According to Cisco, personal, cloud-carried data alone is estimated to grow from 1.7 exabytes in 2012 to 20 exabytes by 2017,” said Skok.
Cloud Drivers & Inhibitors
Over the last few years, the top three drivers for cloud adoption have remained constant with agility, cost and scalability. One area that is changing as a driver though is that companies are increasingly moving workloads to the cloud to switch capex for opex. This is especially true for large companies with more than 5,000 employees.
On the inhibitor front, security continues to be a strong barrier with 49% of respondents concerned about how secure their data is in the cloud. Of note interoperability saw a significant decrease from 27% last year to 17% in 2014 with greater attention being paid to issues like data portability. However, fear of vendor lock-in was still 29%, which put focus on open source cloud projects like OpenStack which have grown. Lastly, privacy concerns rose once again to 31% in 2014 as increased tension manifested itself between the desire for anonymity and the convenience and utility of personalization. This is an area for vendors and enterprises to distinguish themselves as faithful custodians of personal data and engendering trust.
2014 Future of Cloud Computing Survey Collaborators:
Amazon Web Services
View presentation: 2014 Future of Cloud Computing Survey Presentation [http://www.slideshare.net/mjskok/2014-future-of-cloud-computing-4th-annual-survey-results]
Join the conversation: Future of Cloud on Twitter using hashtag #futurecloud and/or @North_Bridge and @futureofcloud.
Based in Blue Bell, PA, CoreDial cloud software and services enable companies to quickly and cost effectively sell, deliver, manage, and invoice for high quality, private labeled cloud communication services including hosted PBX solutions, VoIP, SIP Trunking, and Unified Communications. With no hardware or software to buy, our Service Provider partners—Interconnects, Managed Service Providers, and Carriers—deliver valuable end-user solutions, while creating margin rich recurring revenues and building value in their brand.
About North Bridge:
North Bridge Venture Partners and North Bridge Growth Equity are active partners with entrepreneurs providing seed-to-growth financing for innovative companies looking to disrupt big markets. With $3.5 billion in capital currently under management, North Bridge partners, many founders themselves, work with entrepreneurs to apply their expertise in the creation, operation and scaling of market-leaders. The firm 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 firm has offices in Waltham, MA and Palo Alto, CA. To learn more about North Bridge go to http://www.northbridge.com. For more information on the Future of Cloud Computing program, visit: http://mjskok.com/resources/cloud-computing. Follow us at @North_Bridge.