Top 10 predictions for cloud market: IDC

Cloud services are used as a tool increasingly by both IT managers and business managers with its rapid evolution as well as increasing understanding of the services and their modes of use by the users. According to a research report prepared by International Data Corporation (IDC), this evolution in cloud services is expected to further escalate in the coming years such that business buyers are going to test the abilities of such a potential service to its maximum as well as the capabilities of their CIOs to deliver the results based on these services.

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IDC predicts a very different scene for cloud services by 2016 where the services will become equally important as an outsourcing option for LOB managers and CIOs. It will also force infrastructure vendors, consumers of cloud and business IP owners to change their business models and approaches.

The top 10 predictions made by IDC are:

  1.  The label ‘cloud’ will cease to exist as a differentiator for products as well as services. It will be just another term used for delivery models based on ‘as-a-service’ among all the new commercial terms used for supply of IT and business services. These services then help form the foundation of Outsourcing 3.0 period giving an extensive range of services to develop innovative business solutions.
  2. IDC has predicted that by 2016 an increasing share of IT infrastructure in the form of IT assets, enterprise-class storage and high-end data center space will remain in the control of cloud service providers.
  3. During the years 2013 and 2014, enterprises will increasingly shift to virtual private cloud implementation since such a converged infrastructure platform is faster and cheaper to deploy. The early users of vPC, other than the large players, are not happy with its results. The cloud services resulted in inefficiency due to lack of skilled resources and large cost that is incurred if these services are to be procured and implemented. However, the trend will change in the next two years with enterprises effectively embracing vPC and then it is expected to decline as well.
  4. It is expected that by 2013, the technology risks posed by cloud services will be well understood by the buyers. With more business buyers for cloud as-a-service products emerging, the providers will bring about a shift in their risk management strategies to encompass both business risks and technology risks.
  5. IT-as-a-service offering will be more commoditized, come 2013, and these offerings can be resold in cloud marketplaces. By 2014 and 2015 this cloud trading will expand to include other services like PaaS, SaaS and also BPaaS, provided issues around licensing of software are put to rest.
  6. Customers will be looking for most cost-effective, flexible, efficient as well as manageable infrastructure which will be obtained by converging hardware and software as well as integrating with applications in datacenters.
  7. By 2015, Large and medium enterprises will shift towards the deployment of hosted private cloud due to the changing market trends. This model is considered to be cost effective as well as one that facilitates the delivery of flexible business services. Primary concern is of course cost. A secure and a cloud that is non-shared will give all the compliance requirements in the case of critical applications.
  8. In growing business markets, especially in the Asia-Pacific region, the availability of talent will act as the differentiator to bring about innovation. A region-specific shortage in talent will prove to be the biggest deterrent for the adoption and expansion of new technology.
  9. Several governance issues will take prove to be an important area as these may deter the intake of new technology and services. Big Data has issues regarding data processing. Cloud has data procurement, location patterns issues. Identity control and access and data management issues are brought about by mobility and BYOD and finally, social brings about problems regarding data sharing. These issues will greatly influence the technology to be adopted.
  10. With as-a-service offerings becoming the order of the day by 2015, huge changes will be imparted to cloud and infrastructure service providers. Their upstream partners will also have to significantly change their business models and nature in order to accommodate a few, but large customers who have immense bargaining power.

With the increasing hold of cloud services, technology and as-a-service providers will have to change their ecosystems to adapt to an environment where LOB spending is more on as-a-service offerings rather than IT department.

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