CIOs expect cloud consumption to rise from 31% in 2014 to 58% in 2018, with public cloud adoption predicted to rise fastest; SaaS deployments are expected to increase from 33% of applications today to 56%  over the next five years; and IT leaders predict internal IT infrastructure consumption to fall from 67% to 42% between 2104 and 2018, according to a survey released this week. 


Nomura Holdings, an Asian financial services group with a network spanning the globe, interviewed 50 United States CIOs of small and medium-sized businesses across a wide range of verticals. Although this may telling us nothing about the broader market, it does give some insight into cloud adoption from a CIO point of view.

Core findings include:

  • Overall spending growth of 1.2% in 2016 vs. 3.1% last year – a relative drop, which is perhaps more due to Nomura’s changing methodology (having surveyed larger businesses) than an industry trend.
  • Ongoing priorities for 2016/2017 budgets include big data analytics, cloud computing, and security. In fact, 82% of CIOs polled cite security as the main investment priority this year. This was followed by cloud computing at 62% and big data analytics at 60%.
  • CIOs expect workloads in private cloud environments to reach 25% by 2018, up from 17% in 2014. Public cloud use, on the other hand, is expected to comprise 20% of total workloads by 2018 – a significant increase from 8% in 2014. While public cloud seems to be experiencing the most growth, it still lags private cloud. Both environments are significantly ahead of hybrid cloud. Private cloud use has again been touted as a superior deployment strategy due to the extra security controls.
  • CIOs also anticipate that 46% of their applications will be SaaS-based by 2017 – a number that is expected to rise to 56% over the next five years.