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Techaisle Blog

Insightful research, flexible data, and deep analysis by a global SMB IT Market Research and Industry Analyst organization dedicated to tracking the Future of SMBs and Channels.

US SMB and Midmarket Hybrid Cloud penetration likely to jump by over 100 percent

Techaisle SMB & midmarket cloud adoption survey shows that if US businesses follow-through with their plans for adopting hybrid cloud or for that matter, different types of cloud, then hybrid cloud penetration will have the highest jump within the SMBs, by over 100 percent while the Enterprise segment is likely to see a huge jump in public cloud adoption.

techaisle hybrid penetration resized

However, it is not a “gimme”. While it can be said that a hybrid model for IT service delivery is the reality for most organizations, it can also be said that smaller business may find reliance on public cloud services a simpler option. This is because hybrid IT, or hybrid cloud environments, are also the most complex to manage: while legacy systems, processes and thinking may inhibit cloud adoption, different business segments that are increasingly involved in procurement decisions may opt for siloed cloud application delivery without regard for the organization’s broader technical or overall process goals. And use of hybrid cloud will continue to increase as both a conscious strategy and as a reaction to use of both public and private resources within a single infrastructure.

A surprising outcome from the above chart is the decision trend of enterprise customers to embrace public cloud as the enterprise segment is finally finding that public cloud offers various benefits such as IT cost reduction, increased agility in business operations, increased scalability and flexibility. Public cloud, private cloud and hybrid cloud approaches each offer unique business benefits to the adopting organization. While public services can deliver rapid scale for temporary workloads or support smaller businesses that find appeal in OPEX procurement models, private cloud can deliver scale at better cost in some circumstances, while hybrid cloud offers better, faster access to formerly siloed sources of information.

Another view of the data collected in the surveys provides fascinating insight into the extent that cloud users are willing to align different delivery methods with internal requirements. When responses are taken from the small, mid-market and enterprise respondents and graphed in terms of cloud delivery method usage, Techaisle finds that there are pockets of demand (and overlap in these pockets) that exist for public, private and hybrid models in each market segment.

Related Research

360° on Cloud Computing in SMBs
US Businesses – Hybrid Cloud Adoption Trends
US Enterprise Cloud Adoption Trends
SMB & Midmarket Buyers Journey
SMB & Midmarket Cloud Computing Adoption Trends
The SMB Channel and Cloud: Success Metrics

For more details on Techaisle's Cloud research reports please visit or to see all of Techaisle's Cloud coverage please visit

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Techaisle study shows SMBs accelerating commitment to Cloud

In today’s SMB market, it is critical for vendors to build detailed understanding of the small and midmarket segments, and to align resources and strategies with requirements as SMBs move from initial experimentation with sophisticated solutions towards mass-market adoption.

In its latest study, Techaisle analyzes 1,116 survey responses to provide the insight needed to build and execute on cloud solution strategies for the small and midmarket customer segments. Techaisle’s deep understanding of SMB IT and business requirements enables vendors to understand the ‘why’ and ‘when’ of solution adoption, current and planned approaches to solution use, the benefits that drive user investments, and key issues in aligning with buyers and building and intercepting demand.

Highlights of findings presented in the report include:

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Microsoft Azure is becoming Cloud platform of choice

Techaisle’s detailed survey on Hybrid Cloud Adoption trends covering small, midmarket and enterprise firms shows that although Amazon AWS has established its initial presence within the US businesses, Microsoft Azure is quickly becoming the cloud platform of choice.

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Microsoft Azure, a public cloud computing platform, is a growing collection of integrated cloud services that includes analytics, computing, database, mobile, networking, storage and web. Microsoft Azure initially focused strictly on PaaS but has now entered into IaaS market and launched a technical preview of Azure Stack, a platform designed to allow business to deploy an on-premise private cloud and manage a hybrid cloud environment. Microsoft Azure offers Hyper­-V-­virtualized multi-tenant compute with multi-tenant storage along with many additional IaaS and PaaS capabilities, including object storage and a CDN, Azure Marketplace which offers various third party software and services and Azure ExpressRoute that meets the colocation needs of various small and medium businesses.

The respondents for the survey were CIOs, CSOs, CTOs, VP of IT, Director of IT, Senior manager of IT as well as key business decision makers responsible or influential in adopting cloud platforms within their organizations.

Businesses cited many different reasons as to why Microsoft Azure is becoming a platform of choice.

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New Research – Enterprise Cloud Adoption Trends

The rigor in data collection, the depth in data analysis and the accuracy in forward looking insights that Techaisle brings in its small business & midmarket research has extended to enterprise. Techaisle’s US Enterprise Cloud Adoption Trends provides an in-depth and definitive look into the state of cloud adoption within large businesses.

  1. Only 18% of US enterprises have mature cloud adoption and are optimizing usages; 36% have a cautious approach to cloud. Smaller size large enterprises have reached maturity stage whereas larger sized enterprises have ad hoc approach to cloud
  2. In 92% of US enterprises, IT has a voice on the Board and helps drive the direction of the business rather than business deciding IT needs
  3. Top IT challenge is implementing new strategic IT applications to improve organization’s competitiveness; 74% believe that investments in cloud increases their competitiveness
  4. Greatest benefit of cloud is the ability to launch new products and services
  5. 61% want seamless integration with on-premise systems
  6. For 65% of US enterprises, security and regulatory compliance is the biggest challenge in developing strategies for cloud adoption
  7. In 60% of enterprises data sovereignty and privacy are preventing acceleration of cloud
  8. 75% of US enterprises have adopted Hybrid cloud but the largest penetration growth is expected in the use of public cloud
  9. 74% are using Amazon AWS but Microsoft Azure is not far behind at 65%
  10. 20% of US enterprises use all three types of cloud deployment – private, public and hybrid but the future looks very different

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The research deliverable covers several topics including:

  • Top 10 Enterprise IT challenges & business issues
  • Enterprise Cloud adoption maturity – ad hoc to mature
  • Greatest benefits of using Cloud
  • Factors driving cloud adoption strategy
  • Key attributes of a good cloud solution
  • Challenges in developing strategies for cloud adoption
  • Factors preventing Enterprises from accelerating cloud adoption
  • Current & Planned adoption of services, type of deployment & workloads
  • Current & planned cloud applications
  • Enterprise cloud best practices - hybrid cloud, hybrid IT
  • Enterprise cloud security best practices
  • Use of public cloud within enterprises
  • Benefits of Public Cloud adoption
  • Top drivers of Public Cloud adoption
  • Key challenges in implementing public cloud
  • Workloads being transferred to Public Cloud
  • Key Industry segments using Public Cloud services to derive its benefits
  • Types and brands of public Cloud platform being used - Amazon AWS, Microsoft Azure, Google Cloud, IBM SoftLayer
  • Comparative analysis of AWS, Azure, Google, SoftLayer
  • Influencing the Cloud buyer, mapping the buyer’s journey
  • Influencing the C-Suite

The Techaisle research contains a wealth of data that marketers can use to understand cloud adoption within the US enterprises and build IT buyer-centric marketing initiatives.

 

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