The Great Cloud Expansion

The introduction of cloud options for infrastructure and applications is now more than a decade past, and organizations in virtually all industries have faced the challenge of responding to new, born-in-the-cloud competitors that sought to disrupt their industries through rapid service creation/enhancement. One of the biggest challenges when responding to “agile” competitors is a dramatic increase in the reworking of applications as they struggle to keep pace with innovation.

The next two years will mark a milestone as organizations shift towards a cloud-based IT operating model. By 2022, just under half of a typical enterprise’s spending on infrastructure and applications will go towards hosted private cloud services, shared infrastructure and software-as-a-service (IaaS and SaaS) solutions. More than a third of allocations will be spent on operating dedicated cloud infrastructure and cloud native applications on dedicated, private cloud platforms deployed in corporate datacenters and a growing range of edge locations.

[Figure 1 from US44821419

Worldwide Enterprise Private Cloud Infrastructure (Hardware and Services) Forecast, 2019-2023

Going forward, many critical cloud-native applications and data sets will reside and be used in critical edge locations as well as colocation and cloud datacenters operated by large providers. This agile, multiple cloud-based foundation makes it practical for organizations to use their data to drive business innovation and competitive advantage compared with slower-moving organizations.