25 Mar 2011
A report from Forrester into the infrastructure-as-a-service (IaaS) industry has found growth far lower than predicted, and a worrying disconnect between those buying the services and the IT departments supposed to be administering them.
Only six per cent of the companies surveyed had even limited IaaS implementations, and just seven per cent were planning to adopt such systems by this time next year.
But the majority of services are not being bought via formal IT procurement for expected tasks like transaction handling and analysis applications, the report found.
Adoption is instead coming from informal purchases by departments or individuals, largely for heavy compute or session applications.
Some 16 per cent of this latter group said they were purchasing IaaS services, compared to just six per cent of central IT departments.
"As an IT manager if you think you know what's going on in your company you may be wrong," Frank Gillett, principal analyst at Forrester, told V3.co.uk.
"Some people are not out of line, not breaking policy, and they're not going to put a load on the network. But if they are taking company information and putting it with third-party service providers without telling anyone, then that could well be an issue."
Realistically it would be counterproductive for IT managers to shut these systems down, he said. Instead they should map usage and make sure that security and corporate data policies are applied.
Overall, Gillett described the market as over-hyped, with low and uneven adoption rates for new applications and very little indication of large-scale shifts from installed infrastructures to cloud systems.
"Enterprises shouldn't feel bad if they don't have everything running on Amazon yet," he said.
"If confronted with being told to move everything onto IaaS, any IT manager will say that's nuts. It's feasible to think of it with a new use case or new app, but migration is much more challenging."
The relatively undeveloped state of the market means that criticism of Microsoft and HP that they came late to the IaaS market are unfounded, according to Gillett.
With such low levels of deployment there is plenty for time for these players, as well as smaller operators like Salesforce.com, to pitch for business.
Previous Forrester research has shown that Europe is even further behind the US in IaaS deployment. A report in January found that two per cent of European companies had any kind of IaaS use.
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Do you agree?
Who is going to take the plunge?
Purchasing via individuals or departments has certainly been reflected in our own IaaS service, enCORE. We currently have seven companies from the aeronautics, automotive and engineering industries testing our high-performance data processing service. In most cases, we have dealt directly with the users of the service and not IT. This is not due to our customers not wishing to involve the IT department, or intentionally breaking a company policy, but more likely because as small-medium businesses (the highest proportion of our users) they tend not to have a dedicated or formal IT department. Interestingly, by contrast, the one large customer we do have testing our service does involve its IT department. Generally, irrespective of which contact we deal with, we do see demand for compliance in the area of security (particularly for design data and anything that involves the client’s IP). OCF’s procedures and policies need to meet customer requirements, and these have proved to be sufficient. We would, however, expect to see greater emphasis on security as adoption of IaaS widens. In terms of the general low adoption of IaaS, I feel that this is symptomatic of the situation with cloud computing in general. Much has been spoken and written about the Cloud, and we appear to be in the stage of “who is going to take the plunge first?”. From our perspective, users who have engaged are already seeing very significant business benefits, allowing them to run cases in significantly reduced timeframes and at low unit costs, within a framework of high flexibility. It can only be a matter of time before these benefits drive mass adoption of IaaS in the market.
Posted by: Jerry Dixon 29 Mar 2011