Cloud computing vendors will make significant progress in 2010 in winning over enterprise support, but that won’t necessarily translate into big market share gains, says research firm Yankee Group.

In a report title “Cloud Reality Check,” the Boston-based research firm says industry executives from some of the largest cloud vendors, including AT&T,, IBM and Cisco, believe cloud computing will make significant gains in terms of winning over enterprise mindshare in 2010. However, fully 75% of enterprises say they are earmarking no more than a third of their 2010 IT budgets to the cloud.

Enterprises say the technology is still hampered by stumbling blocks, including security, performance, standards and interoperability issues.

“Although most vendors emphasize their commitment to ‘cloud openness,’ the jury is out as to which vendors can or will deliver on that promise,” Yankee senior analyst Agatha Poon said in releasing the report. “Industry players will struggle to come to terms with cloud openness in 2010, and many will find it difficult to unlock their platforms – and their customers.”

Other key findings from the Yankee report include:

  • Forty-three percent of enterprises cited cost savings as their primary reason for moving their infrastructure to cloud computing.
  • Security service level agreements are a must have for enterprises. Security and availability are the top two barriers preventing enterprise usage of cloud computing, even in private cloud scenarios.
  • Established firms have a leg up on the cloud competition. Enterprises reported their go-to vendors for infrastructure-as-a-service offerings include Cisco, IBM, and AT&T.
  • Microsoft, IBM and Sun were the prime choices for platform-as-a-service.



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