September 14, 2011 – New Ventana research has confirmed that organizations are moving to the cloud now and will accelerate the pace of doing so in the near future. At least 20 percent of five different line-of-business functions use cloud-based applications, and within 12 months, at least 40 percent of eight of nine functions will.
Ventana Research undertook this benchmark research with the co-sponsorship of Information Management to assess levels of maturity, trends and best practices in organizations’ use of business data in the cloud. The research analyzed information from 141 qualified IT personnel responsible for managing cloud data.
Ventana found an increasing number of cloud-based applications in use. Nearly one-quarter (24 percent) of those using cloud-based applications have five or more deployed today, and 32 percent expect to have that many within a year.
For most organizations (65 percent) the most common pattern of data movement is between on-premises applications, but now as many must combine cloud-based data and on-premises data as need to combine on-premises data sources (both 86 percent). The research found that over the next two years cloud-based applications will grow faster than on-premises applications. Overall, organizations’ largest gap between needs and capabilities not yet addressed is in moving cloud data on-premises.
“A little bit of regressing is going on. We knew that with on-premise processes data quality and governance processes need to be followed,” says David Menninger, VP and research director for analytics, business intelligence and information management at Ventana. “With respect to cloud, these issues are resurfacing, and some are forgetting of the lessons of the past.”
All basic information management functions need to be addressed in the cloud, says Menninger. In this study, only 15 percent have completed a data quality initiative, only 5 percent a master data management initiative, and only 13 percent a data governance initiative for cloud data.
Menniger notes that only about one-fifth (21 percent) of organizations fully trust cloud-based data; more than twice as many (46 percent) fully trust data from on-premises applications. He suggests that putting automation tools in place and educating within the organization as well as getting processes established will help address cloud data trust issues.
Additionally, Ventana recommends that IT should find a way to collaborate with line of business. “We found when IT and line of business work together, the line-of-business groups are more satisfied,” says Menniger.