- CIOs expect cloud consumption (private/public/hybrid) to rise from 31% consumption in 2014 to 58% in 2018.
- Public cloud adoption in predicted to attain the fastest growth rate, rising from 8% of consumption in 2014 to 19% in 2018.
- SaaS deployments are expected to increase from 33% of applications deployments today to 56% of deployments over the next five SaaS subscription spend is expected to be 15% greater than prior application software maintenance spend.
- Senior IT leaders predict that the percentage of IT consumption on their internal infrastructure will fall from 67% to 42% from 2104 to 2018 as cloud adoption accelerates.
These and other insights are from the latest Nomura Holdings CIO Survey published March 22. Nomura Holdings is an Asia-headquartered financial services group with an integrated global network spanning over 30 countries. The CIO survey methodology is based on interviews with 50 CIOs in the United States and is therefore not reflective of international demand or the broader market, yet it provides an interesting glimpse into cloud adoption from a CIO perspective. The percentage of CIOs with a budget of $25M or greater nearly doubled from 20% of respondents to 38%. Nomura’s methodology captures small and mid-size US enterprise landscape. 66% of CIOs work for companies with annual revenues of less than $1B; 30% of respondents worked for companies with revenues between $1B and $5B; and 4% for companies with revenues of more than $5B. A wide range of verticals, led by health care and technology, are represented in the survey.
Key takeaways from the survey include the following:
- CIOs predict spending growth of 1.2% in 2016 vs. 3.1% last year, a 1.9% drop. Nomura’s analysts explain the reduction by citing the shift in the study’s methodology that now includes larger firms and greater seasonality. The study also found that early outlook for spending in 2017 is up 2%.
- CIOs Are Prioritizing Big Data Analytics, Cloud Computing And Security In 2016/2017 Budget Cycles. 82% of CIOs cite security as the top driver for IT spending this year, followed by cloud computing (62%) and big data analytics (60%). The following graphic compares the top drivers of IT spending for respondents’ companies.
- CIOs said they expect workloads in private cloud environments to reach 25% by 2018 from 17% in 2014. Public cloud is expected to comprise 20% of total workloads by 2018, up from 8% in 2014. Nomura found that private cloud is gaining more traction vs. public and hybrid cloud with the CIOs surveyed. Nomura observed that enterprises are now taking the first step of migrating to cloud platforms by moving their workloads to privately managed platforms which is considered more secure and gives companies more control over about the public cloud. The following graphic provides a comparison of IT consumption patterns through 2018 for internal infrastructure, private, public and hybrid cloud.
- Workday will be their greatest IT software budget share gainer from 2015 to 2016, with 56% of respondents expecting Workday to gain share of their IT software budgets. 52% of CIOs are predicting Salesforce will gain greater sales of their IT software budgets. Proofpoint, Palo Alto Networks, VMWare, Microsoft FireEye, NetSuite and F5 are all expected to gain 20% or more of IT software budgets this year. The following graphic compares those vendors gaining, maintaining and losing percentages of IT budgets.
- CIOs predict by 2017, 46% of their applications will be SaaS-based rising to 56% in five years. Given the high percentage of IT budgets being allocated to pure-play cloud enterprise software vendors Salesforce, WorkDay, NetSuite and others, the CIOs’ aggregate perception reflects their purchasing priorities.
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This article was written by Louis Columbus from Forbes and was legally licensed through the NewsCred publisher network.