Spending on private cloud IT infrastructure has shown more stable growth since IDC started tracking sales of IT infrastructure products in various deployment environments. In 3Q19, vendor revenues from private cloud environments increased 3.2 percent year-over-year, reaching nearly $5 billion.
“Three of the jobs in the World Economic Forum’s ‘Jobs of Tomorrow’ report – cloud, engineering and data clusters, which are also among the fastest-growing overall – require disruptive tech skills like artificial intelligence (AI), robotics, or cloud computing.”
The evolution of information technology (IT) leadership — sometimes driven by the line of business (LoB), sometimes by the legacy IT organization — is reaching a state of balance where business-IT collaboration sets the stage for meaningful digital transformation.
“Cloud-based application platforms are becoming the pacemakers in the software industry. Pure cloud platform providers such as Salesforce, Workday, and ServiceNow have been getting a lot of attention, and this will continue and even intensify.”
Leveraging the inherent benefits of cloud service offerings, organizations are now focused on the potential of utilizing IT infrastructure for innovation, process improvement, streamlined operations, entering new markets, and the creation of a preemptive response to potential disruption by new tech start-ups.
The Top 10 Cloud service providers spent $17.9 billion, in aggregate, on data centers — that’s a 14 percent year-over-year increase. AWS and IBM were the only cloud service providers increasing capex to expand server capacity.
via Dell’Oro Group
The worldwide public cloud services market is forecast to grow 17 percent in 2020 to total $266.4 billion — that’s up from $227.8 billion in 2019, according to Gartner. “At this point, cloud adoption is mainstream,” said Sid Nag, research vice president.
As companies move beyond initial forays into the cloud, many are experiencing the advantages — and the challenges — of a multicloud environment. In fact, 85 percent of companies globally are already operating in a multicloud environment. By 2021, 96 percent plan to be using multiple clouds.
IT spending growth is being driven by the rest of the world catching up on cloud spending. The U.S. is leading cloud services adoption and accounts for over half of global spending on cloud computing.
“Instead of moving data to the public cloud, the cloud experience will move the cloud to the data. Just as the need for enterprise-style engagement models creates opportunities for incumbent technology companies, so too does the movement of the cloud experience into the core and out to the edge.”
via Wikibon Research