Cloud Reality Check: Vendors Will Grow Mindshare, not Market Share in 2010

Cloud computing pioneers outline paths to success in new Yankee Group report

Boston, MA Feb 22, 2010 - Forty-three percent of enterprises cite cost savings as their top reason for moving their infrastructure to cloud computing. Does today's tight economy mean 2010 will be the year enterprises fully embrace the cloud?

Probably not. As Yankee Group finds in its new report, "Clouds in 2010: Vendor Optimism Meets Enterprise Realities," fully 75 percent of enterprises are earmarking no more than a third of their 2010 IT budget to the cloud. While the 26 thought leaders Yankee Group interviewed for the report--including executives from AT&T, Akamai, Cisco, Citrix, IBM, Salesforce.com and Verizon--all have high hopes for cloud computing this year, enterprises cite key stumbling blocks, including security, performance, standards and interoperability issues. And Yankee Group sees those issues festering well into 2010 and beyond.

"Although most vendors emphasize their commitment to 'cloud openness,' the jury is out as to which vendors can or will deliver on that promise," says Agatha Poon, senior analyst at Yankee Group and co-author of the report. "Industry players will struggle to come to terms with cloud openness in 2010, and many will find it difficult to unlock their platforms--and their customers."

Other key findings include:

  • Security SLAs are a must-have. Security and availability are the top two barriers preventing enterprise usage of cloud computing, even in private cloud scenarios.
  • Established firms have a leg up on the cloud competition. Enterprises say their go-to vendors for infrastructure-as-a service offerings in 2010 include Cisco, IBM and AT&T, while Microsoft, IBM and Sun are the prime choices for platform as a service.


Join the complimentary webinar, Executive Commentary: Cloud Computing Milestones for 2010, on Feb. 24, 2010, at 11:00 a.m. EST to learn more. Host Zeus Kerravala, Yankee Group senior VP, will be joined by a panel of experts from Microsoft, Sybase and Arista. Register at https://www2.gotomeeting.com/register/334599002

About Yankee Group
Yankee Group is the preeminent research and advisory firm equipping enterprises to profit in a mobile world. The core of our content is proprietary research and analytics on the attitudes, behaviors and usage patterns of mobile users. Based on this research, we provide a range of actionable data, insights and advices to marketing, strategy and product executives driving the mobility revolution in leading companies worldwide.

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