Majority of Organizations Run Mission-Critical Apps in the Cloud: Verizon Report

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Widespread enterprise cloud adoption has shifted the challenge from running workloads in the cloud to running them in the right cloud, according to Verizon’s third annual State of the Market: Enterprise Cloud 2016.

The report, released on Monday, found that the number of organizations running mission-critical applications in the cloud has climbed from 60 percent two years ago to 87 percent in the latest report. To do so, over half (53 percent) use two to four cloud providers, and over one quarter (26 percent) use 10 or more as enterprises embrace a multi-cloud strategy. A split also persists in the preferred cloud model, with 44 percent using or planning to implement a private cloud solution, as opposed to 37 percent for public cloud.

Verizon compiled data from an October enterprise cloud customer survey, other internal data, as well as analysis from other firms, including Forrester, Gartner, and IDC to produce the report.

“Last year, the news was that cloud was being used for mission-critical workloads, now enterprises are using it to transform how they achieve that mission,” Ryan Shuttleworth, cloud chief technology officer for Verizon Enterprise Solutions said in a statement. “Companies are using cloud technologies to create new customer experiences, reengineer their business processes, find new opportunities to grow and manage risk and compliance measures.”

Half of enterprises say they will run three-quarters of their IT workloads in the cloud by 2018, while only six percent expect to run less than a quarter of their workload in the cloud by then. Improved security and reliability, or at least the perception of that improvement, is contributing to increased cloud comfort, as 80 percent said their cloud security is as at least as robust as their on-premise infrastructure, and 86 percent say their cloud infrastructure is as available and reliable.

Now that enterprises are practically all using cloud computing, the number who consider it a “significant” advantage has fallen from 30 percent to 16 percent, though the number who perceive some competitive advantage ticked up slightly to 77 percent.

Verizon launched an SDN solution to secure public sector clouds in October. It also sold its enterprise SSL business to DigiCert this past summer, perhaps acknowledging the increased comfort level with service-specific providers that comes with enterprise cloud maturity.

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