Has Cloud Adoption Plateaued?
Blog Article Published: 07/18/2014
By Brandon Cook, Director of Product Marketing, Skyhigh Networks Statisticians are always interested when they see data that diverges from a general pattern. This is exactly what happened when we dug into the latest cloud usage data from Q2 in the recent Cloud Adoption and Risk Report (CARR). To this point, we had seen rapid growth in the adoption of cloud services. In Q3, 2013 the average enterprise used 545 cloud services. In Q4 of that year, the number had grown to 626, and by Q1, 2014 the average enterprise was using 759 cloud services. That averages out to a quarterly compounded growth rate of 18%. But then something strange happened – that number went down, for the first time. Anomaly or the beginning of a trend? Over the last quarter, the average number of cloud services used in the enterprise, actually decreased slightly from 759 to 738. With only one divergent data point it’s impossible to tell if this is an anomaly or the beginning of a trend (we’ll certainly be revisiting this next quarter to draw some conclusions here). The immediate question is – why did this happen? 3 reasons for the flattening We are in the early innings of the movement to the cloud, so it is unlikely that this flattening is due to decreased supply or demand of cloud services. Instead, this flattening is likely the result of 3 factors:
- We are seeing IT making a concerted effort to educate employees on the perils of high-risk cloud services in an attempt to divert usage to low-risk services
- Many organizations are beginning to consolidate services in a particular category to not only lower cost and risk, but also to increase collaboration and productivity
- Due to increased awareness about cloud risks, employees are using more care when dealing with corporate data.