Enterprise IT/Software

Investment backed tech firms expected to build their businesses on the cloud

Software CBR Staff Writer

14:06, June 24 2014

Tech infrastructure and revenue streams will rain down

Adoption of cloud technology will be driven by new businesses being set up by major investors.

According to an annual survey by North Bridge Venture Partners, 40% of leading-edge tech buyers said that they plan to use cloud-based applications in creating new businesses and revenue streams.

Another 35% want to run their company off the cloud with new functions and non-revenue generating IT services moving on to the platform. In addition to web operations, companies are moving their transaction processing functions to cloud. 30% are looking to migrate their new business onto cloud.

Over 60% of the respondents said that they are using some software-as-a-service (SaaS) applications; over one-third use infrastructure as a service (IaaS).

In the next two years cloud-based services are expected to witness good growth with software-defined-networking (SDN) registering an adoption rate of 30%, and platform-as-a-service (PaaS) crossing the 40% threshold.

The report said, "Leading-edge companies are migrating front-office business functions like sales and marketing rapidly. Organizations of all types are moving business analytics and back office functions to the cloud, though manufacturing, logistics, and supply chain might take a little longer."

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