Cloud infrastructure revenues are still going up in value and public cloud providers continue to battle for market share
IT spending on cloud infrastructure will increase by 15.5 percent in 2016 to reach $37.1 billion, according to IDC’s latest Worldwide Quarterly Cloud IT Infrastructure Tracker forecast. The forecast included estimates of hardware purchases both on and off-premises. Public cloud spending is increasing the fastest at 18.8 percent and will amount to $23.3 billion out of the total $37.1 billion, reports Informationweek. Private cloud spending is growing at a rate of 10.3 percent and will account for $13.8 billion of total spending. Traditional IT spending still dwarfs spending on cloud infrastructure, though revenue in that space is decreasing at a rate of 4.4 percent a year.
The market for cloud infrastructure is growing quickly with no indication of stopping. Inevitably, cloud technology will evolve as it grows. Writing for the Huffington Post, Aj Agrawal shared his thoughts on exactly how cloud technology will change in the coming years. Data is becoming increasingly valuable for enterprises as they move to the cloud, Agrawal asserts. “In many ways, the grabbing of data for companies is like the grabbing of oil for countries,” he explains. This need for data may drive enterprises to becoming closer to the big companies that are competing to supply data. Cloud will also need to evolve to match the needs of traditional organizations instead of just startups. Increasingly, we will see the adoption of cloud along with other tools. As the industry becomes more competitive, the big cloud companies like Google, Amazon and Microsoft will each strive to make their cloud offerings simpler and more convenient than the others. Agrawal’s final prediction is that cloud will stop being a trend and start being an everyday part of business.
Last week, a new Morgan Stanley CIO survey announced that most CIOs prefer Microsoft Azure over Amazon Web Services. However, a new article by InfoWorld suggests that these results may be flawed. “The only problem with this survey: IT’s asking the wrong people. In today’s world, developers determine the cloud an enterprise will use,” InfoWorld explains. In recent years, primary decision-making authority has been migrating from CIOs to the developers who work under them. A survey by 451 Research found that half of the respondents believed the CIO’s IT org has no control over line-of-business spend.
The Morgan Stanley CIO survey also claimed that the reason CIOs prefer Microsoft Azure is because it works with Microsoft technology they already have. However, that advantage may not last — Microsoft recently announced that Azure Stack will not be compatible with the company’s existing hardware, Business Insider reports. Microsoft claims they will eventually release a model that works with existing technology, but they are prioritizing a model that will require customers to buy special Azure Stack integrated systems from Dell, Hewlett-Packard Enterprise and Lenovo. This change goes against the promise that Azure Stack would allow customers to take advantage of Microsoft’s Azure cloud services without having to change much of what they are already doing.
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