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

October 21, 2021

Scaling DevOps and SRE practices is critical to accelerating the release of high-quality digital services. However, siloed teams, manual approaches, and increasingly complex tooling slow innovation and make teams more reactive than proactive, impeding their ability to drive value for the business, according to a new report from Dynatrace, Deep Cloud Observability and Advanced AIOps are Key to Scaling DevOps Practices ...

October 20, 2021

Over three quarters (79%) of database professionals are now using either a paid-for or in-house monitoring tool, according to a new survey from Redgate Software ...

October 19, 2021

Gartner announced the top strategic technology trends that organizations need to explore in 2022. With CEOs and Boards striving to find growth through direct digital connections with customers, CIOs' priorities must reflect the same business imperatives, which run through each of Gartner's top strategic tech trends for 2022 ...

October 18, 2021

Distributed tracing has been growing in popularity as a primary tool for investigating performance issues in microservices systems. Our recent DevOps Pulse survey shows a 38% increase year-over-year in organizations' tracing use. Furthermore, 64% of those respondents who are not yet using tracing indicated plans to adopt it in the next two years ...

October 14, 2021

Businesses are embracing artificial intelligence (AI) technologies to improve network performance and security, according to a new State of AIOps Study, conducted by ZK Research and Masergy ...

October 13, 2021

What may have appeared to be a stopgap solution in the spring of 2020 is now clearly our new workplace reality: It's impossible to walk back so many of the developments in workflow we've seen since then. The question is no longer when we'll all get back to the office, but how the companies that are lagging in their technological ability to facilitate remote work can catch up ...

October 12, 2021

The pandemic accelerated organizations' journey to the cloud to enable agile, on-demand, flexible access to resources, helping them align with a digital business's dynamic needs. We heard from many of our customers at the start of lockdown last year, saying they had to shift to a remote work environment, seemingly overnight, and this effort was heavily cloud-reliant. However, blindly forging ahead can backfire ...

October 07, 2021

SmartBear recently released the results of its 2021 State of Software Quality | Testing survey. I doubt you'll be surprised to hear that a "lack of time" was reported as the number one challenge to doing more testing, especially as release frequencies continue to increase. However, it was disheartening to see that a lack of time was also the number one response when we asked people to identify the biggest blocker to professional development ...

October 06, 2021

The role of the CIO is evolving with an increased focus on unlocking customer connections through service innovation, according to the 2021 Global CIO Survey. The study reveals the shift in the role of the CIO with the majority of CIO respondents stating innovation, operational efficiency, and customer experience as their top priorities ...

October 05, 2021

The perception of IT support has dramatically improved thanks to the successful response of service desks to the pandemic, lockdowns and working from home, according to new research from the Service Desk Institute (SDI), sponsored by Sunrise Software ...