Businesses of all sizes are under pressure to reduce spend on IT and are turning to virtualization and cloud computing 1) to ensure always-on, always-available secure networks; 2) to address costs; and 3) to increase their productivity. Although cloud is gaining traction with businesses, they do have concerns and are evaluating security and performance standards associated with mission-critical applications in the cloud.
In spite of these concerns, economic pressures have created IT initiatives for cloud, and it is estimated that 7 to 30 percent of IT spend will be on cloud initiatives by 2013.1 This evolution creates pressures for service providers. They now need to decide what offerings they will deliver: mission critical, on-premise applications requiring security versus cloud offers such as unified communications (UC) and collaboration.
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