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What CXOs Need to Know About the Cloud

May 8, 2014
at 3:45 pm PST

The Internet of Everything (IoE) is changing the business and IT landscape, fueling unprecedented growth and disruption. As such, just thinking about cloud deployment is not enough. Organizational leaders need a cloud strategy to help future-proof their business and better meet objectives.

In fact, according to Gartner, organizations that continually monitor cloud computing trends and subsequently update the enterprise’s cloud strategy, will likely avoid costly mistakes and garner the most value from market opportunities over the next few years.

Cloudy Future SlideShow by Gartner

 As CXOs adopt cloud strategies, what key trends should they keep in mind?

Here’s a short list for consideration:

Trend #1: Prepare for Growing Cloud Workloads

Today’s world isn’t just a world of many clouds, but also a world of growing cloud workloads.

According to Cisco’s Global Cloud Index:

Annual global cloud IP traffic will reach 5.3 zettabytes by the end of 2017. By 2017, global cloud IP traffic will reach 443 exabytes per month (up from 98 exabytes per month in 2012).

Global cloud IP traffic will increase nearly 4.5-fold over the next 5 years. Overall, cloud IP traffic will grow at a CAGR of 35 percent from 2012 to 2017.

Global cloud IP traffic will account for more than two-thirds of total data center traffic by 2017.

In this video, find out how these growing cloud workloads are driving IT to become a broker of cloud technologies.

Trend #2: Evolve Your IT Department to Harness the True Potential of the Cloud 

Although the cloud has been a disruptive force for IT departments, it can also be a savior. When used and governed effectively, cloud computing helps IT teams deliver more value to their organizations in general, and business groups in particular. It also can help enable greater relevance, influence, and impact. Consider the impact of evolving your IT department to accommodate an innovative and strategic cloud deployment, especially with these figures in mind:

From a recent IT Consumption Model Survey (interactive infographic), respondents in the North American Region said that 25 percent of their total IT budget will be spent on cloud by 2016.

Line-of-business executives are driving more IT spending than ever before. According to the Cisco Cloud Executive Perspectives Newsletter, IT spending by groups outside of IT departments will grow more than 6% per year through 2017— almost 2.5 times the rate of the IT department—led by marketing, customer service, and sales groups.

By tapping the cloud, IT groups can transition from systems administrators to value added service brokers.

Trend #3: Adoption is not Enough: There is Strength in Strategy

Just because you’ve adopted cloud doesn’t mean you have a cloud strategy. In fact, according to IDC research, over half of mature organizations (in business for 25 years or more) have adopted cloud or have plans to adopt this year. Yet, only 10.2% of these organizations have an optimized cloud strategy.

It’s clear that as cloud computing matures, IT departments must establish a more strategic approach to IT operations and service management.

Find out how to close this gap between adoption and strategy -- check out the IDC Cloud Adoption Trends Infographic, and Gartner’s The Future of IT: Drive New Consumption Models with Cloud and Hybrid IT.

All of the assets mentioned in this blog can easily be accessed by clicking on the above image.

All of the assets mentioned in this blog can easily be accessed by clicking on the above image.

 Want to learn more about how to prepare for growing cloud workloads, how to evolve your IT department to harness the true potential of the cloud, and how to develop a more strategic approach to IT operations and service management?

Join us on Wednesday May 14 at 9:00 a.m. PST for Cisco’s Intercloud Workload Migration Webcast.  (available on demand)

Join us at Cisco Live May 18-22 or follow the conversation online.

Register today for the Cisco Powered Cloud Day at Cisco Live on Monday, May 19. The insightful day will focus on opportunities and challenges that can be addressed with cloud.

Watch Cisco Live’s Technology Business Vision  keynote by Rob Lloyd on Tuesday, May 20 at 10:00 a.m. PDT.

Watch Cisco Live’s Cloud Technology Trend Keynote – Aligning Your Strategy and Business for Cloud Success by Dr. Gee Rittenhouse and Faiyaz Shahpurwala on Tuesday, May 20 – 1:30 p.m. PDT.

Visit Cloud Executive Perspectives to get additional cloud insights for IT leaders and follow @CiscoCloud and use #CiscoCloud to join the conversation.

Cloud Computing: The Changing Role of IT from Cisco Business Insights

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