Overview & Key drivers for Cloud Prediction – 2016
As per IDC, the spending on public cloud will reach over $112 billion in 2019, with a compound annual growth rate (CAGR) of 18.3% — about six times the rate of overall IT market growth. In 2019, public IT cloud services will drive nearly 20% of the $675 billion aggregate spending in applications, development and deployment tools whereas spending on infrastructure software, storage and servers, will account for 59%.
There is shift from traditional IT services to cloud-based services. Cloud services are growing due to organizations pursuing a digital business strategy. The enterprises are moving their infrastructure needs away from data center build-outs to the public cloud. According to IDC, Investments in cloud IT infrastructure will grow across all regions. As cloud service providers continue to expand their portfolio of offerings and customer reach, the public cloud segment will deliver the highest rate of IT spending growth in a majority of regions compared to private cloud and non-cloud environments.
Many factors have direct or indirect impact on technology operations and investments – business, social, economic, and technological. IDC has identified 7 drivers that significantly affect cloud sourcing and deployment decisions by enterprises:
- Digital Transformation
- Shifting global economic power, balance and influence
- Cloud platform gravity attracts IT energy and activity
- Rise of DevOps accelerates cloud-native application development
- Modular IT
- High demand for next-generation business/IT skills, but scarce supply
- Cloud life: The merging of real life with digital identity
Points to Assess in Cloud Prediction report for your business
The IDC Cloud prediction will enable enterprises to consider the overall impact of developments such as the digitalization of the economy cloud, shifts in populations and business activities, software-defined compute, and cloud storage.
Assess the relevance: Strategy involves both – what you decide to do & what you decide not to do. How relevant are these predictions to my business?
Assess its urgency: While implementing cloud, consider how urgent it is to implement cloud service
Assess the resource requirements: Consider resources & cost involved. Importance of the prediction to other projects consuming the resources.
Inspira & Juniper presents IDC FutureScape Cloud Predictions report 2016 for our readers absolutely free of cost. You just need to share your details and download the Cloud Prediction report 2016. Further read below the impact cloud technology with have on IT infrastructure and your business.
Impact of Cloud on IT and Business Units
Cloud computing transforms entire organization — people, processes and systems. Cloud computing impacts business in different ways:
Economical: Businesses experience savings and economies of scale as they begin to pay only for the services they use. With IaaS and SaaS platforms, the need to purchase expensive hardware and software upgrades reduces, resulting in significant start-up and maintenance savings for businesses.
Operational: Impact of cloud computing lessening work & control of IT managers, as the majority of IT maintenance and support will be outsourced to cloud providers. Cloud providers will provide standard options and packages for maintenance and support, but the offerings will be much less collaborative than traditional service provider applications.
Regulatory and security enforcement measures: IT become more stringent and easily accessible from any location with wider adoption of the cloud.
Cultural: Impact of the transition to cloud involves redefining the roles of IT professionals and business owners, and restructuring IT support for end users. Business owners will need to decide who makes decisions regarding the selection of cloud vendors, applications, etc. Likewise, end users may need to redirect their IT help desk concerns from internal IT resources to the cloud provider’s IT service.