90% of Enterprises Plan to Increase or Maintain Annual Spend on Cloud Computing in 2016 – Study

According to latest studies, a majority of enterprises in the US plan to increase their spending on cloud computing by as much as 50% in 2016.

The known B2B research firm, Clutch reveals that nearly 30% will maintain their current spending, and only 6% will reduce their cloud computing budget. This spending pattern indicates a growth opportunity for cloud service providers in the enterprise market.

“Spending on the Cloud has increased because companies realize they are getting a lot of value,” said Jason Reichl, CEO of Go Nimbly. “The Cloud is building ROI [return on investment] faster and with better business accuracy, so companies are willing to reinvest in it every year.”

The research firm surveyed 300 IT professionals from medium and large enterprises using a full-service cloud computing platform and found that 47% identified increased efficiency as the main benefit of cloud computing.

Analysts confirm that the value enterprises derive from cloud infrastructure directly influences spending patterns.

The highest priority cited for enterprise cloud usage is file storage, at 70%, followed by backup and disaster recovery (62%), application deployment (51%), and application development and testing (46%).

The survey suggests that cloud service providers can appeal to enterprises by leveraging features that correspond to these prioritized tasks.

“The ROI of file storage on the Cloud is pretty straight-forward. Every company needs file storage,” said Duane Tharp, vice president of technical sales and services at Cloud-Elements. “The ease of adopting the Cloud for file storage needs enables rapid adoption in this space as opposed to other use cases for the Cloud.”