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12% of Enterprise Workloads Will Run in Public Cloud by End of 2013: Report

New Cisco Study finds Service Providers top the list as Cloud Computing providers

"The study conducted by Cisco Internet Business Solutions Group confirms that enterprises are weighing their options as they look to find the right cloud for their applications," said Brian Klingbeil, GM of Hosting at Savvis as the results of a new research study by Cisco's Internet Business Solutions Group (IBSG) were issued Tuesday.

Based on feedback from the survey, Cisco IBSG estimates that nearly 12%of enterprise workloads will run in the public cloud by the end of 2013. Furthermore, the study found that desktop applications, email, collaboration, and enterprise resources planning are most likely to shift to the cloud. This, in turn, will yield a market for public, cloud-computing services of approximately US$44 billion, according to the report.

For the survey Cisco IBSG, which is the company's global consultancy, conducted in-depth, one-on-one interviews with more than 80 enterprise IT decision makers from 43 enterprises and public-sector organizations in the United States, the European Union, and India. Additionally, Cisco IBSG interviewed 20 subject-matter experts.

The aim was to investigate the "public cloud" and the desire of enterprises to use external, on-demand infrastructure and applications.

"Service providers are at an inflection point," noted Cisco IBSG VP Scott Puopolo (pictured). He continued:

"Enterprises are making decisions about cloud migration on an application basis. This means that service providers should develop and market cloud propositions relevant for specific applications. Service providers like Savvis have an opportunity to gain share and differentiate in the cloud market with their networks. On-demand provisioning of IT and network resources and end-to-end service level agreement are the key features that enterprises value - and service providers are in the best position to deliver them."

The study indicates that service providers have a real opportunity to differentiate themselves and add new revenue-generating services by providing public cloud computing services.

The report can be found here.

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