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The Business Case For The Public Cloud

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Enterprises around the world would be wise to heed 50 Cent’s mantra ”Get Rich or Die Tryin’” when considering the implications of not “getting” to the public cloud. We at Cocolevio, an implementation partner of Mooor Insights & Strategy, estimate that over 50% of IT spend will be going to public cloud vendors such as Amazon Web Services or SaaS vendors like Salesforce.com Inc. by 2019. This means there is around a $140B opportunity in this space. The cost savings, reduction in capital spending, speed to market, flexibility and global access derived from public cloud mean those enterprises that effectively use the public cloud are better positioned to “Get Rich” than their competitors who have higher cost structures and less nimble IT platforms. This trend is only set to continue as the business case for moving to public cloud only becomes more compelling, with the traditional arguments against public cloud around security and lack of control diminishing. Vendor lock-in will continue to be a concern but we see many companies willing to sacrifice a bit of lock-in for the many, many benefits of public cloud.

With this in mind, it is prudent for any CIO to have a migration strategy to the public cloud. It is now generally accepted that at least some workload and functions of an organization will need to be moved in order to be competitive. Recently, the poster child for Amazon Inc., Netflix Inc. announced that they closed their door on their last datacenter. Although by no

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