The Adoption of IaaS – Drivers & Inhibitors

Enterprises of all sizes are increasingly embracing the cloud based service model because it provides them with agility, flexibility, scalability, on-demand access at a lower cost than traditionally available. One of the primary components of the overall cloud based services market is the Infrastructure-as-a-service (IaaS) market. According to the latest analyst agency report, the Cloud based IaaS market will reach USD 10.5 billion in 2014.

The initial set of IaaS solutions that were brought to market by Cloud Service Providers (CSPs) were the basic compute and storage services that are necessary to run applications. However, with the latest change in the demand, technology, challenges, customer requirements, CSP’s even started looking at Disaster Recovery, Virtual Private Datacenters and High performance computing.

One of the key challenges which IaaS providers are facing is to understand the evolving requirements of the marketplace and to incorporate those requirements into their service offerings.

Here are the Drivers and Inhibitors:

In order to assist IaaS providers to effectively evolve their services and to enable IT organizations to put their plans in the context of the broader marketplace, it is helpful to understand the factors that are driving IT organizations to use IaaS solutions as well as the factors that are inhibiting IT organizations from either using those solutions or expanding their use of those solutions.

Below are the survey results conducted by one the research agency:


With these survey results it has been observed that Low cost is the primary factor driving the adoption of cloud based IaaS solutions. In addition, another very important driver of the adoption of cloud based IaaS solutions is the ability to reduce the time for deployment as well as management of the associated services

Apart from these above listed drivers, there are few inhibitors that limit the company interest in using a cloud based IaaS solution. Below listed are few inhibitors:


With this data interpretation, we can understand that concerns about the security and confidentiality of data are the major factors inhibiting the adoption of cloud based IaaS solutions. Lack of cost savings is the second most important factor followed by few other less impact factors.


Over the last few years, cloud computing in general, and IaaS in particular, has gained wide acceptance and hence adoption is expected to increase dramatically over the next several years. In addition to the adoption rate, what is also changing dramatically are the types of IaaS solutions being offered and the expectations that IT organizations have of those solutions – whether they provide those solutions internally or acquire them from a CSP.

While the adoption of basic compute and storage services will continue to grow, they will not grow as rapidly as will virtual private data center and disaster recovery services. While cost savings will continue to drive the adoption of IaaS solutions, agility will be the biggest driver. Concerns over the security and confidentiality of data will remain the primary inhibitor of IaaS solutions.

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