There's no denying that cloud computing has changed the way both large enterprises and small businesses operate. It will grow at a CAGR (Compound Annual Growth Rate) of 30% from 2015 to 2020. With the increased acceptance of cloud computing, we can look forward to better and greater tapping of cloud resources this year. The only question that remains to be answered for most business enterprises is when to move their services to the cloud as cloud providers are constantly updating their services. It is not only the small businesses that are shifting their services to the cloud, but large commercial organisations are doing so as well.
A large majority of enterprises are using cloud computing, but IT directors have committed relatively few resources to the cloud--perhaps because the connection between budget and value can be unclear. The five vectors of progress described here can help drive broader and deeper adoption of cloud computing and enable enterprises to get more value from their shift to the cloud. While three-quarters of enterprises have adopted the cloud to some degree,7 leaders have moved only 20 percent of business processes to the cloud, according to Ovum, a technology market researcher.8 This suggests that companies have a ways to go in utilizing the cloud as a platform for enterprise digital transformation, not just as a way to lower IT capital expenditure and accelerate service delivery. The vectors of progress discussed below could drive faster adoption of cloud and help companies derive additional value from it.
The volume and impact of changes have forced organizations to rethink how they define cloud for their business goals and infrastructures. Looking ahead to 2019, organizations will likely focus on shifting their cloud strategies from the low-end infrastructure-as-a-service (IaaS) opportunity to instead extracting valuable data from their business processes; integrating data across the enterprise and with external data sets; and applying new, innovative services such as AI, blockchain and analytics to that data. Organizations will need hybrid and multicloud environments comprised of the right tools and infrastructure to help get their jobs done more efficiently. At IBM, we believe the following cloud trends will gain momentum as enterprises continue into the next phase of their cloud journey. According to research from Ovum, while 20 percent of business processes have already moved to the cloud, 80 percent of mission-critical workloads and sensitive data are still running on-premises because of performance and regulatory requirements.
In recent years, cloud computing technology has changed the way many companies handle IT. Using the public cloud computing model, IT departments have the option to pay-as-they-go while rapidly spinning up services, applications, or instances in a cloud provider's data center, scaling them up and down as demand changes. But how prevalent is public cloud use among businesses, how much will usage continue to grow, and how will cloud-centric technologies continue to evolve? We surveyed more than 450 IT decision makers in organizations across North America and Europe to understand how businesses utilize different public cloud deployment models (e.g., IaaS, PaaS, SaaS), what types of workloads and services are running in public clouds, and which emerging cloud trends are on the rise. The percentage of business applications, services, and workloads running in public clouds is expected to double in the next one to two years.
Forrester released a report on Monday establishing five cloud computing predictions for 2020. The predictions reveal the growing battle for cloud computing dominance, with major cloud vendors evolving and shifting tactics. These predictions will help CIOs and their organizations prepare for the growing cloud landscape, which continues shifting as industry cloud leaders develop. With the public cloud market--cloud apps (SaaS), cloud development and data platforms (PaaS), and cloud infrastructure (IaaS)--expected to reach $411 billion by 2022, Forrester outlined the following five future enterprise cloud shifts in its Predictions 2020: Cloud Computing report. Depending on the organization's needs, a company can rent any of these services from major cloud providers.