Highlights from the Spring SNW Cloud Computing Summit

I was not the only one from DCIG attending SNW last week: Kelly Polanski, a Contributing Analyst with DCIG, was also in the SNW mix.  While I took briefings and caught up on the latest advancements in specific products, Kelly attended the afternoon SNW Summits. Following these Summits, she provided me with some of her notes. I found some of the information significantly compelling, and so I’m sharing them now with DCIG’s readership. Today’s blog shares some of the insights that Kelly gained from the Cloud Computing Summit on April 6.

IDC Predictions and Data:

  • Cloud adoption and growth are predicted to outpace growth of other spending over the next 3 years; CAGR of ~5%
  • Cloud is expected to represent 25% of incremental new project spending by 2012
  • $6.8B spent on SaaS in 2008; SaaS included in Cloud spending predictions
  • 30% of organizations surveyed by IDC report using Cloud/SaaS in some form today
  • 76% are working on active projects to adopt cloud computing
  • The highest adoption rates for SaaS/Cloud are for CRM, HR, Collaboration Travel Expense and Sales Incentive applications

Key Drivers for Cloud Adoption:

  • Brisk pace of technology turnover and change
  • High cost of capital
  • Need to keep SLAs constant while staffing levels fluctuate
  • Infrastructure spending this year is predicted to be relatively flat, up only .5% for all of 09
  • Infrastructure spending is expected to increase in 2010 by 4.6%
  • Worldwide infrastructure spending in 2009 is expected to total of $367B for non-cloud/SaaS and $16B for SaaS; increasing to $438B and $42B respectively in 2010

Health Care Implications:

  • Cloud is the ‘dream’ platform – perhaps the only platform – capable to deliver the Electronic Health Record/Electronic Medical Record (EHR/EMR) with universal hospital/healthcare access – according to the CIO at Schumacher Group
  • Kelly’s observation: EMR/EHR is the ‘killer app’ for Cloud Computing
  • 70% of hospitals outsource emergency medicine
  • Schumacher is the third largest and fastest-growing emergency medicine provider
  • Schumacher uses Cloud service providers, all of which are HIPPA-compliant
  • Schumacher’s observation: vendors of his on-site infrastructure are not as hospital-aware/healthcare-aware as his Cloud vendors

VMware Implications:

  • Virtual Machine technology (like VMware) is a necessary component for enabling Cloud application provisioning
  • Enterprises are starting with Cloud secondary storage provisioning as a first step such as for data backup and disaster recovery
  • Likewise, SaaS models for application services are well understood and relatively easy to embrace for enterprise teams
  • Enterprises are less clear on how to use Cloud for production data analysis/provisioning

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