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The Great Migration Has Begun!

The Great Migration Has Begun!
July 18, 2017

We know that technology is ever-evolving, but cloud computing is here to stay and flourish. It’s ushering in a whole new set of changes in enterprises across the world. A great migration is taking place within the IT infrastructure. A number of organizations are moving from closely held datacenters to public or private cloud computing services. With the increase in data security and corrections of past mistakes, firms aren’t hesitant to use public cloud for transferring data. A report by a leading enterprise has predicted that more than four-fifths of all datacenter traffic (83%) will be cloud-based within the next three years.

A number of organizations are moving from closely held datacenters to public or private cloud computing services.

A large number of enterprises are using cloud services, and production workloads have grown multifold in the public cloud services domain.

With companies looking to transform quickly as they scale to serve their customers better, cloud market is well on its way to a super growth trajectory in 2017. Most decision-makers in America and Europe are already building private clouds to improve their infrastructure needs.

The Number Game

The global public cloud market is predicted to be worth $146 billion in 2017 as against $87 billion in 2015. The revenue from public-cloud services, combined with Software as a Service, is expected to grow at a compounded annual rate of 22% between 2015 and 2020 – reaching $236 billion.

By 2018, at least half of global IT spending will be cloud-based, and cloud will be the preferred delivery mechanism for analytics. Amazon Web Services, for instance, generated approximately $12 billion in annual revenue in 2016 and shows no signs of slowing down in 2017.

India and China: The Growing Seedlings

If we just look at India and China, government-led cloud initiatives and incentives are the driving forces behind the fast growth of cloud. The governments of both countries are heavy cloud users, striving to create a technology-driven modern society and inspire innovation. The cloud market in India stood at $688 million in 2012, a figure that rose to $3.5 billion by 2016.

Public vs Private Cloud

Experts have noted that enterprises using private cloud will have difficulty sustaining it due to the cost, time, effort, and management bandwidth required. Private cloud users will have to embrace the hybrid model and gradually move to public cloud. 

A major benefit of using public cloud is that it reduces capital costs considerably while ensuring data security. Even today, public cloud helps optimize operational costs and maintain economies of scale. The prices that a public cloud offers are highly competitive; besides, it’s cheaper to set up than a private cloud. However, if not used judiciously, public cloud can cost more than private cloud. 

Even if you have set up private cloud at the cost of millions of dollars, you will need to renew the technology (both hardware and software) every year, which would inflate the operational cost (also known as ‘refresh cost’) and management bandwidth.

Private cloud services require advanced virtualization, standardization, automation, self-service access, and resource monitoring. Stitching these capabilities together into a cohesive system is daunting and expensive. In a private cloud environment, the owner will have to take the responsibility to revamp and upgrade the systems. On the other hand, public cloud entails that cloud services’ vendors will have to take the responsibility. So, it leaves us with no doubt that public cloud services will be more in demand in the future. This will result in a sharp rise in revenue for large public cloud providers.

Who Needs a Server When There is Cloud?

As an increasing number of enterprises move toward cloud, serverless computing is going to become widely prevalent. Today, enterprises have started sending code snippets to public cloud services, which is executed by the latter automatically on request. Thus, developers need not bother about code snippets anymore.

Containers and the Way Forward

There is more to cloud when it comes to Linux Containers. It’s being predicted that Linux containers will be available in every major public and private cloud in 2017, allowing consumers to build their own stacks. Cloud applications based on microservices and built using containers are the current disruptions in cloud computing. These services are used so much that they are quickly becoming the norm. 

Containers lend themselves to agile development and continuous updates when used in DevOps. In a similar manner, they can be used for frequent changes and updates to the infrastructure when they house operating systems and other system software. Containers make it easier to move discrete units of system software around. Team them up on servers and start and stop them quickly, the same as application workloads.

Containers provide IT with the option of using one operating system. This facilitates moving system resources around more quickly and scaling them up or back efficiently, as conditions warrant. The software to accomplish these system tasks is still being developed, and whether container management can actually displace self-provisioning and other automated features of cloud operations remains to be seen.

However, containers are a major disrupter, with proven efficiencies over earlier technologies. There is an increasing sense in the market that the containers will continue to move forward.

Conclusion

The cloud is finally mature and secure enough for enterprises, and its benefits outweigh its limitations. Datacenters are static and rigid, but cloud can fly (not in a literal sense). The functionality race among the big cloud platforms will continue in the future.

The great migration has begun, and we’ll have more workloads moving to cloud-based platforms than ever before. However, cloud is still not 100% secure – it’s an area that needs to be addressed. Cloud has made strong headway in the last five years, and performance problems will be solved with some thought and technology.

Additionally, there will be a growing focus on technology standardization, automation, and a data-centric approach to information security. Since all of these are core to the successful deployment of cloud computing solutions, industry growth will be faster.

All in all, the future for cloud and cloud-based technology is bright.