3 Lessons About the Future of the Cloud
April 06, 2018

Steve Francis
LogicMonitor

Share this

Most companies are adopting a cloud strategy. In ServiceNow's Cloud Tipping Point Survey, half of all enterprises reported they are now "cloud-first," meaning that the next workload they deploy will go to the cloud instead of their data center.

It took 20 years from the time the term "cloud computing" was coined to reach this milestone. When will we be at a point where virtually all enterprise workloads are run in the cloud and how will that change things for IT?

To find out, we commissioned our own survey, Cloud Vision 2020: The Future of the Cloud. We started with a group of core influencers – people whose job it is to follow cloud computing. This group of 88 "cloud cognoscenti" included industry analysts, media, consultants and cloud vendors. We then followed that up with another survey fielded at the 2017 AWS re:Invent conference in Las Vegas where we received 195 additional responses from the people tasked with workload deployments in the real world.


The results were fascinating. I'll share three fundamental lessons we learned in the survey as well as some advice for going forward.

Lesson 1: The Reasons Why Enterprises Embrace Cloud Computing Are Changing

Why do enterprises use cloud today? The drivers of cloud computing today will sound very familiar: digital transformation, IT agility and the rise of the DevOps culture.

Those make perfect sense. Digital transformation aims to put the customer at the center of a company's automation strategy, and cloud is an excellent way to accomplish that. IT agility is much easier to achieve when someone else is responsible for your infrastructure, and you can focus on applications. The DevOps culture relies on cloud computing to achieve the speed and efficiency it was designed to deliver.

But by 2020 we expect those drivers to shift, revealing a new top-driver: artificial intelligence (AI)/machine learning. That wasn't what I expected, but it makes sense.

First, AI provides the ability to extract insight from the massive "data lakes" that enterprises are collecting about their application performance and behavior. Similarly, public cloud provides the scale to provide the massive compute resources AI needs.

But more than storage and compute, the public cloud is quickly becoming a hub for AI services that developers can integrate to build sophisticated AI applications. AWS, for example, has been busy adding Machine Learning-as-a-Service capabilities.

Lesson 2: It's Going to be a Hybrid World for the Foreseeable Future

ServiceNow's survey showed that half of all enterprises are now cloud-first, but that means half are not. And, even if an enterprise is cloud-first, it will still have many legacy workloads in an on-premises data center.

We asked survey respondents to forecast when they felt nearly all (95 percent) workloads would finally be in the cloud. Predictably, a few enthusiastic cloud supporters predicted this would happen within one year (6 percent) or two years (9 percent). However, nearly two-thirds (64 percent) felt that we won't reach the 95 percent threshold for 7 years or more. In fact, one in eight respondents say we'll never reach that important threshold.

Clearly, we'll be living in a world with both on-premises and cloud workloads for the foreseeable future.

Lesson 3: AWS Dominates, But The Marketshare Race Isn't Over

Amazon's AWS has been an amazing success. Analysts report that AWS enjoys 47 percent of the public cloud market today, with Microsoft Azure at 10 percent and Google Cloud Platform at 4 percent. Other companies, such as IBM Softlayer, make up the remainder with 2 percent or less each. That's a commanding lead, but will it hold going forward?

Industry influencers expect both Microsoft and Google to gain ground against AWS going forward. They forecast that by 2020 AWS will grow slightly to a 52 percent market share, with Microsoft growing to 21 percent and Google growing to 18 percent. Those are impressive gains in a short period of time, and point to a robustly competitive market for public cloud.

Reas Part 2: How to Prepare for the Future of the Cloud

Steve Francis is the Founder of LogicMonitor
Share this

The Latest

September 21, 2018

The performance gap between customer experience leaders and runners-up is widening, with those on top being disproportionately rewarded. Gartner said organizations must ignore three myths in order to achieve a superior customer experience ...

September 19, 2018

This summer marked three years since Microsoft announced Windows 10, its first "Windows as a service" Operating System (OS). Windows 10 brought with it a new Software-as-a-Service-like approach to updates, moving Microsoft and the millions of environments that depend on it, more frequent, bundled updates. Whether you believe the shift was for better or worse, one thing is certain, this "as a service" model is a natural progression for today's operating systems. That is why Windows 10 is changing not only how frequently updates are pushed out, but inherently how technology is purchased, how people consume it, and perhaps most importantly, how IT is run. Let's take a look at how Windows 10 has impacted these three key areas over the past three years ...

September 18, 2018

To celebrate IT Professionals Day 2018 (this year on September 18), the SolarWinds IT Pro Day 2018: A World Powered by Tech Pros survey explores a "Tech PROactive" world where technology professionals have the time, resources, and ability to use their technology prowess to do absolutely anything ...

September 17, 2018

Are digital war rooms obsolete because they're just a place for managers of siloed business units to find someone else to blame for a critical IT event such as a security breach? Far from it. Enterprises find these emergency response teams just as important, if not more important, than ever ...

September 14, 2018

The goal of EMA's latest research was to look at how advanced IT analytics (AIA) — EMA's term for primarily what today is best known as "AIOps" — is being deployed. Here are the remaining four of my seven personal takeaways ...

September 13, 2018

OK, the data is in! The goal of EMA's latest research was to look at how advanced IT analytics (AIA) — or EMA's term for primarily what today is best known as "AIOps" — is being deployed. Here are seven of my own personal takeaways ...

September 12, 2018

By maximizing the knowledge of end-to-end quality of service (QoS) using virtualized network functions (VNFs), the SD-WAN (edge) gateway establishes a suitable connection with minimal latency and maximum performance so that entire organizations can make the most of the Office 365 application suite ...

September 11, 2018

Market exuberance for Office 365 has inspired business mandates to adopt the cloud-hosted collaboration and productivity suite without regards to the underlying chaos. While multi-location organizations are virtualizing, operating models haven’t necessarily changed. This partial transformation that excludes automation and simplification of the network puts Office 365 deployments (and other software-as-a-service offerings) in danger of failing ...

September 10, 2018

Most organizations are undergoing a digital transformation that directly impacts how they do business, yet 70 percent of employees have not mastered the skills they need for their jobs today, and 80 percent of employees do not have the skills needed for their current and future roles, according to Gartner ...

September 06, 2018

In a survey within the VMware User Group community, Blue Medora took a closer look at how various metric collection strategies and access to Dimensional Data impacts IT success. We started with one question: How important is your monitoring integration strategy? ...