The real story behind enterprise cloud penetration within the verticals

Last year Gartner released numbers that pointed to the growth of cloud computing from 2011 to 2016, specifically, the growth of cloud computing by vertical industry.  According to Gartner, anticipated growth opportunities put these industries at the top when it comes to global IT spending, which includes cloud computing:

$84,074M – Banking & Securities

$70,683M – Communications, Media & Services

$63,589M – Manufacturing & Natural Resources

$34,611M – Insurance

$24,907M – Transportation

Healthcare did not make it to the top 5, but that vertical is at about $15,000M, just behind transportation.  However, healthcare as a whole is expected to jump up significantly in both cloud spending and IT spending.  The changing regulatory pressures will drive this trend, along with the opportunities to reduce costs in healthcare IT.

Although healthcare was once considered an industry that would not adopt cloud computing due to systemic security, legal, and privacy issues, that no longer seems to be the case.

Pronouncements by various countries, such as the American Recovery and Reinvestment Act of 2009 (ARRA), laid down by the US Government, encourage businesses in the healthcare industry to utilize certain applications of electronic records.  Legacy systems are beginning to be replaced with cloud technology that offers easier, faster, and more cost-effective access to healthcare data.

According to Formtek, the healthcare cloud computing market is definitely picking up its pace.

“In 2011, only about 4 percent of healthcare IT providers had adopted some form of cloud computing, but it was at that point that the market started to grow at a healthy rate of about 20 percent each year, and it’s expected to continue until 2017, when it ultimately reaches a market size of $5.4 billion, based on a report by MarketAndMarket.  Those estimates are similar to those published by Kalorama which predicts 21 percent growth of healthcare cloud computing in 2013, reaching $3.9 billion by the end of this year.”

The need to reduce costs drives the growth of cloud computing in specific verticals, such as communications, manufacturing, insurance, and transportation.  While there are more strategic advantages, such as agility and time-to-market, they are not typically high on the list of considerations.

Banking and securities are driven by the need for more innovation in that sector and the value that they get from that innovation.  Banks, for instance, are rewarded for systems that can process transactions faster and more securely.  Most banks now provide new services, such as mobile banking, that are ready-built for cloud-based systems.

It’s clear that both the banking and healthcare verticals will benefit most from the use of cloud-based platforms.  The other verticals don’t seem to benefit as much, but they do benefit enough to make cloud computing a worthwhile journey.

The post The Real Story Behind Enterprise Cloud Penetration within the Verticals appeared first on Logicworks Gathering Clouds.

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