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Enterprises Ready to Commit to Long-term Cloud Contracts

Industry News from Cloud IT

Enterprises Ready to Commit to Long-term Cloud Contracts

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May 26, 2016
By Michelle Amodio
TMCnet Contributor

With the cloud being a highly secure, location-independent solution, it offers options that far outweigh traditional IT services, and thus makes for an attractive option for computing and communications needs. It makes sense then that enterprises are warming up to cloud contracts.


Survey results from Microsoft (News - Alert) and Research 451 note that organizations are becoming more reliant on digital infrastructures, thus more are moving towards a hosted system. While 40 percent of 2016 IT budgets are staying with on-premises infrastructure and staff, 33 percent are looking towards hosting providers.

The study also shows that 57 percent of organizational infrastructure will be digital in two years, up from 51 percent today, according to customer estimates.

“Our vibrant and growing community of service providers plays an important role in helping our mutual customers build a successful business while taking advantage of the many benefits the cloud has to offer. This new research reaffirms the great opportunity that our cloud and hosting service provider partners have to drive organic growth with customers once signed on,” according to a Microsoft statement.

Many businesses are at an advantage when they utilize the cloud for work. By using information more effectively, workflow and the teams behind them come together. It takes fewer people to do more work on a cloud, with a minimal learning curve on hardware and software issues.

In the past, companies needed to have their IT departments on hand to manage their premises-based systems, but as cloud providers have taken over this role, decision makers are now seeing a reduction in IT costs as well as reduced costs in hardware maintenance.

Moving towards a cloud-based system can provide a number of important competitive advantages, like easily connecting remote offices together.

With all of these options, it makes sense for businesses to move towards the cloud; investing in a system is a solid, stable and cost-effective solution that uses the most cutting edge technologies available.

“The overall managed services segment stands to benefits significantly from the cloud, as it remains the largest part of the cloud and hosting market at 52 percent of all services revenue totaling $37 billion in 2015. This is projected to grow to $70 billion by 2019,” according to Microsoft.




Edited by Stefania Viscusi

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