With all the articles you’ve probably read on cloud, all the hype and all the talk about cloud – you’d think that every business was now at least 90% in the cloud. Yet apparently there’s still some way to go. Here’s a little round of some of the latest predictions, stats and figures relating to the cloud industry. We also think there’s a great opportunity for innovative startups in the enterprise IT and cloud market to disrupt the status quo for cloud migration and enterprise hosting services. What do you think?
So what’s the state of cloud in 2017?
74% of tech CFOs believe cloud computing will have the most measurable impact on their business in 2017. Is this the year that things get done? The year in which those large scale moves to cloud happen and central business applications finally tip over the edge into the cloud abyss? Perhaps… (Source: https://www.forbes.com/sites/louiscolumbus/2017/04/29/roundup-of-cloud-computing-forecasts-2017/#2e4fa41631e8)
Enabling top performers
A report from IBM showed that the top-performing companies in the banking sector are 88% more likely than underperforming banks to implement a hybrid cloud strategy. We’ve always had an inkling that the best performing companies have embraced cloud where it makes sense, but it’s good to see it in stats and facts! (Source: https://enterprisersproject.com/article/2017/8/hybrid-cloud-10-notable-statistics)
Cloud spend 6 times the rate of spend as traditional IT
Still pushing against the pull of cloud and refusing to budge? Apparently cloud compute spend is growing at 4.5 times the rate of IT spend – and that rate is expected to increase to 6 times the rate of IT spend between 2016 and 2020. Is your IT reseller still telling you to buy on-premise or ignore SaaS tools? Maybe 2017 is the year to reconsider your supplier strategy. (Source: https://www.forbes.com/sites/louiscolumbus/2017/04/29/roundup-of-cloud-computing-forecasts-2017/#5834998231e8)
The hybrid cloud market is expected to be $91,740,000,000 in 2021, raised from an estimate of a comparably feeble $33.28bn in 2016. With such a huge increase in the market size, we’ll be paying close attention to who the big players in the hybrid cloud market are – surely it’s going to be an attractive play for many existing cloud providers and startups? (Source: https://enterprisersproject.com/article/2017/8/hybrid-cloud-10-notable-statistics).
Global IT-as-a-Service spend
Deloitte believes that in 2018 the global spend on ‘IT-as-a-service’ will be $547bn, up from $361bn in 2016. With such an increase in spend, we are predicting that providers will be bringing evermore innovative solutions to market to make it easier for the larger organisations with complex ERP systems and on-premise legacy environments to move over. We haven’t seen much innovation in the arena of cloud migration services and taking legacy apps to the cloud – maybe this is an area for startups to focus on in the future to harness the uptick trend in as-a-service spending? (Source: https://www.forbes.com/sites/louiscolumbus/2017/04/29/roundup-of-cloud-computing-forecasts-2017/#5834998231e8)
I believe that many of these cloud statistics offer a lot of possibility for newer market entrants to capture a piece of the cloud pie – customers are looking for something different; they want simpler systems and easier paths to migration. Who will own the market for easier migration to a hybrid cloud environment?