Research Shows That Growing Companies Adopt Cloud Computing Faster

Recent research by MarketBridge confirms that migration to the “Cloud” is accelerating - and that some fascinating patterns are emerging about the people and organisations - fast-growing companies and younger executives - that are adopting the technology most quickly...

The survey, conducted in December 2010, covered 1,000 North America-based small to medium enterprises. 44% of the companies already had at least one business application in the cloud, and over 70% indicated that they intended to move more into the cloud over the coming 12 months.

Growing Companies Adopt Cloud Computing Faster

Some organisations are adopting cloud computing faster than others. One of the most interesting findings was that companies that were growing by 10% or more per annum were nearly twice as likely to move applications and infrastructure into the cloud.

Younger Executives Are Keener On the Cloud

Age plays a part, as well. The study showed that 62% of executives under 35 had already or were planning to move applications into the cloud - compared to only 40% of executives over the age of 55. Infrastructure as a Service (IaaS) was even more popular with the younger generation.

Mobility, Growth and Change Triggers Adoption

The three most popular drivers behind cloud computing adoption turned out to be increased workforce mobility, business growth and changes in business processes, with CRM, Marketing Automation, Website Management and Business Intelligence the most popular applications.

Cost, Security and Performance Key Advantages

Cost savings and better performance were key drivers - as was higher security. It’s interesting to observe that market opinion appears to be polarising: some companies see SaaS security as offering an advantage whilst for others it remains a potential barrier to adoption.

Important Implications for Vendors

The implications for software and services vendors are profound: in addition to focusing on those applications and IT infrastructure elements that fit most naturally into the cloud, they would also do well to focus on prospects that are growing quickly and have a young management team.

They should look out for the key triggers that are driving SaaS adoption, emphasise cost and performance advantages, and be aware that Cloud security is a factor that could be seen as a strength or a weakness by prospects.

Last, but by no means least, organisations that have already deployed SaaS applications in one area of their business are more likely to add additional Cloud-based applications. That first “breaking of the seal” opens the door to a growing wave of investment.

If you’re a software vendor or a software user, how do MarketBridge’s findings square with your experiences? And if you’ve got an opinion about how quickly cloud adoption is going to grow, please click here to answer my LinkedIn poll.