Shift from Build to Consume Expected for Cloud

Enterprises will shift from building IT to consuming IT over the next three years, according to McKinsey’s IT-as-a-Service (ITaaS) Cloud and Enterprise Cloud Infrastructure survey. It says organisations are planning to transition IT workloads to hybrid cloud, with off-premise seeing the greatest growth.

While 77% of organisations used traditionally-built IT infrastructure as the primary environment for at least one workload in 2015, this will fall to 43% in 2018, says the company. Use of IaaS as the primary environment for workloads is expected to rise from 10% last year to 51% in 2018. Nearly half (48%) of large enterprises with off-premise workloads have handed off at least one to a large ‘hyperscale’ provider, such as Microsoft, Google or Amazon, and this is expected to rise to around 80% by 2018.

Many also plan to use tier-two and tier-three IaaS providers and traditional vendors for at least one off-premise workload. The lack of cloud talent in-house and the need for hybrid cloud models should drive broader adoption of managed cloud offerings.