What Will Drive Enterprise Cloud Adoption in 2016?

by Pradeep Agarwal, COO, hSenid India    Dec 29, 2015

Pradeep Agarwal

Gartner says that the cloud market is to grow from USD 58 billion in 2013 to USD 198 billion in 2020, with a USD 70 billion dollars target for private cloud by 2018. Big organizations continue to adopt cloud technology in big ways in 2016 cutting costs at the same time and reducing risks. Experts believe that self service cloud technologies will keep growing making data integration and migration less risky and complex. Here are some key trends that would define cloud adoption in the enterprise in 2016. 

More Hybrid clouds adoption

During the year 2016, enterprises will go beyond hybrid cloud and within the hybrid IT. Hybrid cloud is a subset of hybrid IT referring to an organisations use of multiple cloud models to respond which could be private, hosted or public cloud options. When we mix the organisations on-premises computing and co-located assets, the model becomes a hybrid IT.  In other words, Gartner says that it is a combination of strengths allowing organisations to achieve their performance of on-premises solutions and also the management convenience of the cloud business model. 

Transparency and analytics to optimize infrastructure

Organisations are gaining better views on costs and performance associated with cloud options. This leads to a need for greater transparency and analysis of cloud spend and application performance. Apart from cost reduction, the emphasis will be more on improving performance of cloud solutions and maximising their value for the business.   Organisations may even want to spend more in certain areas as to drive zero latency for customer-facing applications, and less in other areas that are deemed less important.

The network capacity and performance is absolutely critical here, too. It would be quite difficult to guarantee the performance of any cloud-based application without having a networking solution that is equal to the organisations application you are putting in the cloud. 

There would be greater use of the tools needed to generate and analyse the data since that would help organisations understand cost, value, and impact of their cloud choices. Not only just for a single cloud provider, but across multiple providers simultaneously. It will be all about optimising the cloud infrastructure against the business objectives through transparency and data analytics.

Private cloud adoption

Private clouds allow the IT departments to optimise infrastructure costs and performance for specific types of applications that were previously dismissed as cloud targets. Private clouds also enable an IT department to improve overall service levels operated within the private cloud service, it also increases infrastructure agility specifically to scale environments and also offers higher level of security options.

Agility is constant as the top cloud driver

It has been found that 66% of organisations ranked increasing agility as the top cloud driver pushing them to the cloud. So far, agility is holding steady in this top spot for 2016 as well. Agility is all about positioning IT to change and scale fast to keep up with the business needs. 

As you can see, the future of the cloud is bright. In 2016, there would be major changes and developments. By 2018 or 2020, the current state of the cloud may become absolutely unrecognisable. Innovation will keep continuing to happen leaving no industry untouched.