Outsourcing contracts becoming increasingly cloudy, report shows

James Stirling News
22 Nov, 2012
Cloud in hands
Cloud in hands

ISG report indicates rapid increase in cloud adoption, with SaaS overtaking IaaS as investment of choice

The number of outsourcing contracts involving cloud has doubled worldwide over the past two years, a new report by consultancy Information Services Group (ISG) suggests.

An analysis of ISG’s own clients revealed an even higher uptake, with the proportion of its advised contracts with cloud scope rising from nine per cent in 2010 to 27 per cent in 2012.

Anticipating a continuation of the global trend, which saw the number of such agreements rise from 110 in 2010 to 220 in 2011, ISG has predicted that a total of 300 contracts featuring cloud will be awarded by the end of 2012.

The company has also published results from its quarterly survey of service providers, which revealed that cloud is now a feature of at least 25 per cent of respondents’ pipeline opportunities.

Stanton Jones, emerging technology analyst at ISG, said, while the adoption of cloud is on the rise, not all categories are seeing the same rate of growth.

“We are seeing the greatest potential for growth and momentum in Software-as-a-Service (SaaS) – especially for human resources, customer relationship management and collaboration. We project that Infrastructure-as-a-Service (IaaS) will lag behind SaaS in terms of enterprise-wide adoption,” Jones said.

Pontus Noren, director and co-founder of Google Apps and Amazon Web Services reseller Cloudreach said of ISG’s findings: “This report demonstrates how cloud computing is living up to the hype – it is one of the only areas in IT that is rapidly growing.

Noren also said cloud’s continuing growth “can only be good for the global economy”, as it frees companies up to focus on their core activities, rather than purchasing and managing IT..

“I see future growth being unstoppable for cloud computing,” Noren concluded.

Read more about: