Cloud computing contracts set to remain popular

Cloud computing contracts set to remain popular

The number of IT services contracts that have included some form of cloud computing has increased three-fold since 2010, according to a new report that underlines the popularity of cloud computing.

A survey by Information Services Group (ISG) found that back in 2010, only 9 per cent of service deals involved a cloud computing element. Now, this has increased to an impressive 27 per cent.

With regard to a pipeline estimate of the deals that are due to be completed in the near future, service providers claim that around a quarter of these deals involve a cloud element. Using the TPI Index, TSG worked out that around 300 cloud contracts will be awarded in 2013.

Many of the deals comprise the provision of cloud infrastructure services, consultation on strategy and cloud architecture or the creation of Software as a Service solutions for clients.

An emerging technology analyst at ISG, Stanton Jones, told ComputerWeekly that non-cloud service providers are increasingly having to compete with cloud services. He explained: “From well-known software vendors to more nimble mid-market players and emerging pure-play infrastructure and SaaS providers, traditional IT service providers face significant pressure in nearly every direction… SaaS can be cheaper in the long run, but it requires a significant commitment.”

A recent survey by ComputerWeekly and TechTarget found that more than 20 per cent of European firms have outsourced their cloud computing, compared with 18 per cent in North America. This suggests that we could see major growth in the US market for cloud computing in the coming years.

Businesses looking to move services into the cloud, should evaluate the performance of their existing network and consider setting up a leased line or MPLS network.