This is the new era of cloud computing which has the potential to make IT organizations more responsive than ever. Cloud promises economic benefits, speed, agility, flexibility, scalability and innovation.
“The use of cloud computing is now growing, and by 2016 this growth will increase to become the bulk of new IT spend, according to Gartner, Inc. 2016 will be a defining year for cloud as private cloud begins to give way to hybrid cloud, and nearly half of large enterprises will have hybrid cloud deployments by the end of 2017.”
Cloud Computing Trends Today:
A survey on cloud computing trends was done on SMBs and large organizations by RightScale and the findings in its 2016 state of the cloud report are summarized below.
Growth in hybrid cloud adoption
As per survey, there is a strong growth observed in hybrid cloud adoption as public cloud users added private cloud resource pools in the last twelve months. 77 percent of respondents are adopting private cloud, up by 63 percent in 2015 due to which, use of hybrid cloud environment has increased to 71 percent. In total, 95 percent of respondents are adopting the cloud, up from 93 percent last year.
Private cloud adoption: workloads move to private clouds
Acc. to the RightScale report, enterprises are now shifting workloads to both private and public cloud as seen in the last year, with private cloud growing faster than public cloud.
Many enterprises are running more than 1,000 virtual machines (VMs) in public cloud that is an increase from 13 percent to 17 percent, while those running more than 1,000 VMs in private cloud also increased from 22 percent to 31 percent.
There is a noticeable increase in the adoption rates of every technology of the private cloud. The growth is distributed across all providers. As per report, for organizations of all sizes, 44% of respondents adopt vSphere environment as private cloud. OpenStack and VMware vCloud Suite are second with 19%.
Public cloud adoption
The above figure shows AWS lead in adoption of public cloud with 57% of respondents. Azure IaaS and PaaS can be seen to be gaining quick momentum. IBM SoftLayer and VMware vCloud Air also show an increment of over 2%.
Challenges associated with cloud adoption
Skill shortage and lack of resources
As now more and more enterprises place workloads in the cloud, there is an absolute need for expert and skilled workforce. David Linthicum, cloud industry expert and a thought leader, recognizes a lack of trained and skilled staff to build and support cloud-based applications and infrastructure which is number one reason due to which mostly organizations fail. “They simply lack skilled people who can effectively execute in a safe manner. The skills aren’t optional for a person or a company, they are required for success.” said David.
Cloud cost optimization
As per the survey, 26% of respondents agree that cloud cost management is a big challenge in 2016. The most common optimization action is that 45% of enterprises and SMBs are monitoring utilization and rightsizing instances. To save money, 36 percent of SMBs are purchasing AWS, Reserved Instances (RIs) and 21 percent are tracking purchased RIs to make sure that they are being fully utilized.
With over 34% enterprises and 28% SMBs shutting down workloads for certain hours, cloud optimization provides a significant opportunity of savings.
Cloud spending is increasing worldwide
“Greater Cloud Spending, will exceed dollar 500 billion by the year 2020, including SaaS, IaaS, PaaS, and all managed and professional cloud services – public and private, and supporting hardware and software used in cloud implementation as well.” – As per IDC.
As per IDC, US showed 64% growth in revenue in 2015, will witness a drop of 4% and will account for 60% growth by 2019. Asia Pacific excluding Japan and Latin America will account for public cloud’s highest growth rates in next 5 years.
So, this is the right time to move to the cloud- whether you’re an end customer or one willing to become a cloud service provider. Feel free to drop your comments in the section below.