InformationWeek 500: Tech Vendors Capitalize On The Cloud
IT races to keep up with demands of business for new technology.
IT vendors see great value in adopting applications and other resources outside of their corporate data centers. Uptake of software as a service continues unabated, with 78% of tech industry respondents to our InformationWeek 500 survey using some form of SaaS internally. That number is up seven percentage points from last year.
IT also is bullish in its use of cloud computing, with 59% of respondents tapping the cloud for storage, compute power, or other uses. Cloud adoption among all industry sectors is a mere 37%, putting IT well ahead of other industries.
"You've got very sophisticated internal customers in technology companies," says Stephen Savage, corporate senior VP and CIO at CA. Those internal customers pressure IT departments to roll out applications as quickly as possible.
Savage calls this a velocity gap. "You will only be as aligned with the business as quickly as you can deliver new solutions to the business," he says. "The business is usually out ahead of you so you have to tighten the curve." SaaS and the cloud make it easier for IT to close that gap.
Our survey data is clear that the IT companies are taking a hard look at the cloud, and embracing those elements where potential risks are outweighed by benefits such as low capital costs and quick user uptake.
IT Service Management Must EvolveThe idea of technology being delivered as a service appeals to the 409 IT pros responding to our Service-Oriented IT Survey. But cloud providers are competing for that work, and CIOs are being selective.