Age of “cloudification” & budget shift to “cloud-first” approach

A recent prediction by Gartner suggested that by 2020, corporate industries would have no choice but accepting cloud technology to manage their daily operations. The typical “no-cloud” policy will be just like “no-internet” and the tables are likely to turn towards “cloud-first” or “cloud-only” norm. CIOs today realised the importance of cloud computing and are likely to leverage the technology increasingly in coming times to drive the entire IT stack thereby meeting requirements of the business peers.

This holds true and significant as far as software development, planning and design is concerned but, the notion now is being gradually extended towards a wider IT landscape. As organisations advance their digital strategies and completely immerse in the IoT-based business models while utilising intermediary platforms that interacts with many devices, cloud hosting services rises to a new level.

2018 will see 45% increase share for cloud computing
Another research from Gartner concluded that companies facilitate their cloud activities and optimise their digital strategies by investing less in conventional/non-cloud deployment models. The Infrastructure-as-a-Service (IaaS) market grew impressively above 40-percent since 2011 in terms of revenue per annum. By 2018, the percentage is forecasted to soar three-times greater followed by rapid deployment of virtual machines (VMs) by IaaS providers.

The allocated budget share for non-cloud IT is expected to drop from 70-to-57 percent by end of 2018. In contrast, investment in cloud-based infrastructure and system will rise from 30-to-44 percent in 2018 whereas market for public cloud is deemed to skyrocket with significant increase in IaaS, PaaS and SaaS models by 2020.

This percentage growth across the public cloud has been observed for a past few years and continued its flight throughout 2017. The total revenue projection by end of 2017 sums up to approximately US$ 247 billion as compared to US$ 210 billion back in 2016. Strongest contributor would be the IaaS model followed closely by SaaS.

Cloud adoption further triggered by DevOps
Modernising applications is another driving medium taking demand for cloud services sky-high. Companies are advancing their application landscapes in an effort for a richer, better and broader customer experience. Frequently, cloud is the first choice in hosting, used mostly for testing, development and production.

In this context, the development methodology has gained momentum while enjoying higher acceptance. Focus has been given more on increasing the quality, shorten the release cycles, minimising costs and reduce complexity.

Another study suggested that by now, at least eight of ten IT executives have implemented the DevOps. The major barriers so far are lack of demand from businesses, deficient expertise and resources.

Those who succeeded integrating the tangible benefits and collaborated in a better way experience a boost in quality service, improved performance and many other associated and optimistic problems.

Digitalisation & the changing role of CIO
The heavy adoption of cloud is likely to continue in future as well and pretty much conceivable. The rising trend of mobile app development, deployment of micro-level services and fusion of data-centric corporate models alongside the industry-specific cloud would eventually lead to the “cloud-only” and “cloud-first” approach.

A few considerations
Despite the rising demand and spontaneous growth of cloudification, it does have a few implications. The most prevalent challenge for CIOs would be management of multiple disparate cloud hosting and network service providers. Focus is likely to shift from operating to orchestration of the IT thereby empowering digital solution and their implementation.

All of this comes with development of central data repository and arenas that can streamline and monitor everything with proper enforcement of standards and global policies. Other crucial things to consider are optimising the deployment procedures, ensure swift commissioning and decommissioning of the IT resources, creation of such IT ecosystem that serves broad strategic alliance partners instead of the typical client-supplier relationship.

Conclusion
Cloud and digitalisation goes hand-in-hand whereas both define the future of industries. Survival is possible only with early adoption and have room to scale-up with ever changing trends in the technology sector.

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