Latest Trends In Cloud Computing

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While cloud computing continues to make a significant headway in the internet world, advancements happening in overall technology areas have started delivering value for enterprise businesses alike.

Gartner is expecting the total IT spending to grow 3.7 per cent to $3.88 trillion for the year 2015; and at the same time, overall share of cloud computing is going up multifold. The spectrum of opportunity is widespread and virtually unlimited, so to speak.

That offers enterprises an opportunity to evaluate future course and challenges associated with this new era of enterprise transformation. Understanding the current trends is an important first step towards assimilating mere thoughts in to actionable strategy. Here are few cloud computing trends that stand out from my perspective:

1. The margin of traditional data processing vendors is a new opportunity for cloud players

With the aim of substantially optimizing the cost and scale of business data processing and analytics workloads, vendors such as Pivotal, Amazon Web Services, Microsoft, and SAP are making heavy investments. They are conducting several trials and fine tuning their offerings to make them deliver enterprise services in a flexible, scalable and efficient way. The notion of margin here doesn’t refer to the profit or cost saving factor alone, but it is more of a value being delivered at a specific and incremental cost.

2. Cloud is forcing enterprises to move past the comfortable market positions into unseen territory

Declining license revenues of erstwhile repetitive product sales business is forcing enterprise products vendors to go beyond usual product areas and invest in creating more revenue streams - either through differentiated products or new offerings altogether. Not only software product vendors, but also OEM vendors in areas such as printing, networking, medical instruments are building serious strategies to become cloud service providers around their core products.

3. Leveraging public cloud services for innovation and market trials

While enterprises continue to look for better alternatives to ‘lift-and-shift’ type of cloud migrations; few nimble players are actually using readily available public cloud services to augment them smartly – to solve challenges in the areas such as security and intelligence, health monitoring, logistics, entertainment, etc. This is also motivating vendors to invest additionally in coming up with more cloud native services apart from usual storage, hosting, productivity or middle tier computing services.

4. Enterprises continue to invest hard cash to prepare for the scale of opportunities ahead

Globally more data centers are being built than ever before. Billions of dollars are moving towards developing these new-age cloud technology delivery centers.  The recently announced investments from the likes of IBM, Microsoft, Oracle, AWS, Vodafone, et al reflect the nature of demand on the ground. To begin with, hosted scalable infrastructure services could prove to be a major stepping stone for organizations that are not yet prepared to modernize enterprise systems.

5. Cloud computing to expedite the delivery of enterprise mobility solutions

With platform features such as backend integration for mobile, push notifications, social integration, data store and API support; ‘mobile backend as a service’ (MBaaS) is trying to leverage the cloud model to help develop mobility solutions in a quick interactive fashion. Once the ecosystem reaches a level of maturity, it may help revive some legacy systems for the mobile-first world. This market’s size and worth is reaching the tune of $7.7 billion by 2017 could change the future of enterprise mobility drastically.

6. Brokerage model to prevail within the enterprise and also across the businesses

In the multi-sourced scenario, where enterprises (including SMBs) need to subscribe to services from different sets of vendors, governance and control becomes paramount. Traditional integration platforms could do a very little and hence a centralized and standardized way of cloud service brokering is appealing to enterprise IT for internal intermediation as well as for external business to business services. And this is certainly changing the role of System Integrators and the technology platform they use for such integrations. While number of vendors are eyeing this business that is growing at 46.2 per cent CAGR, what IT leaders are really looking for, is the right partner who understands the intricacies of various cloud systems, architectures and methodologies to delivera complete solution.

There are a few more trends that have started to emerge clearly; and seem to have immediate impact on the role of enterprise IT in leveraging cloud computing for business benefits. For example – how cloud computing is helping create and foster the open technology world with platforms such as OpenStack; how cloud vendors are building muscles for solution delivery as a concrete next step to service delivery. With that, and the way things are progressing for implementation frameworks, cloud computing is set to drive integrated solution blueprints for enterprise digital transformations on the anvil.