Financial will drive commercial innovation in Private Cloud
Lets take a look at this great chart from Gartner on the amount of spend versus readiness in Cloud BY industry. I’ve highlighted Manufacturing, Financial, and Government as the top three spenders in IT. In terms of readiness Media, Transportation, and Government are in the lead. However, I’d argue that when you focus only on the Fortune 1000 enterprises, most IT shops are very sophisticated and the “readiness” factor becomes less of an issue.
What this chart doesn’t take into account, is the opportunity to deploy highly automated infrastructure based on the profile of the applications being created, deployed, and supported by the organization. When you think about what drives the cost of the business, the shear number of business applications (the more homegrown the better), the higher the cost.
I’ve spoken to many Fortune 500 enterprises in the financial segment (JP Morgan, Citibank, UBS, StateStreet), and the conclusion is consistent – This segment has by far the most number of applications which are being refactored using new development frameworks and deployed as part of a data center refresh and/or data center consolidation and outsourcing.
When you look at the number of complex web-based applications being deployed within financial enterprises, you will understand what truly drives their cost structure. It’s not the cost of servers, storage, and networking, but rather the number of application developers and the time it takes to refactor those applications. IT costs become so insignificant when you look at the bigger picture.
Financial enterprises get this…..and, therefore, will drive the innovation in the Private Cloud space.
Other related articles:
- Cloud Prophecies: The Cloud Era
- SaaS offerings will dominate market (greater value with the end-user application)
- Private Cloud Will Drive the Bulk of Revenue in the datacenter (sorry Amazon)
- Platform as a Service = Application Focus = $True Value (IaaS is dead)
- Financial will drive commercial innovation in Private Cloud
- Government and Manufacturing will lead in Public Cloud (SaaS)
- Power of IT shifts to Application Developers
- System Integrators turn into Managed Service Providers (with Cloud)
- SIs are the gateway into large enterprise for new cloud vendors
- Open (driving more commodity) will become key For the Channel
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