Enterprises are using cloud services for strategic benefits such as supporting digital transformation efforts rather than for tactical ones, like reducing IT infrastructure costs and the hardware or software maintenance burden.
According to the latest worldwide market study by IDC, vendor revenue from sales of IT infrastructure products for cloud computing environments — including public and private cloud — grew 28 percent year-over-year in the fourth quarter of 2018 (4Q18), reaching $16.8 billion.
“The cloud ride is accelerating, faster than we predicted only three short years ago. Cloud vendor innovation pace is off the charts, and revenue is soaring.” Expect the cloud market to top $230 billion, up from just over $100 billion in 2016.
Canalys reports that hyperscale cloud infrastructure services are in a period of sustained growth, with spending up 46 percent in 2018 to more than $80 billion. Expenditure is also forecast to surpass $143 billion in 2020.
The top IT initiatives for 2019 were Cloud or Hybrid Computing (46%), Modernizing Infrastructure (38%), Data Governance (32%), Advanced or Predictive Analytics (25%). IT professions were split on top challenges, with 38% selecting the Skills and Staff Shortage.
Of the 58% of global enterprises operating in the cloud, two-thirds already operate four-or-more different cloud stacks. If you’re not there yet, you soon will be — and you must treat multicloud as an operational reality, refining your ability to integrate and operate solutions.