Open IT solutions are gaining momentum. Most savvy CIOs and CTOs already have plans to increase their applications for open-source software projects. While that software is an established component of on-premises enterprise data centers, the untapped opportunity is open IT hardware infrastructure.
As the proportion of the IT budget allocated to cloud increases, the focus on cloud costs will increase, and cost efficiency will once again rise as an area of focus and a decision driver for customers. And it is reasonable to expect this focus on costs to drive yet another wave of price reductions and price wars among cloud providers.
The Future of Operations becomes reality when companies build on their current infrastructure and digital capabilities to develop resilient decision-making — having the ability to use all available data and information to rapidly and effectively make decisions.
“Hyperscale public cloud platforms are the main enabler for hyper-agile app development and deployment. IDC’s research, however, shows that 67% of European organizations are building a hybrid cloud technology architecture for the future, where on-prem has a strong presence in the space of mission-critical applications.”
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
As more enterprise CIOs and CTOs embrace hybrid multi-cloud deployment strategies, business technology vendors and cloud service providers must continue to evolve their go-to-market approach — in recognition of the prevailing IT infrastructure investment trends.
Using an agile transformation to modernize an IT infrastructure organization isn’t easy, but it is worthwhile. Agile approaches can enable IT infrastructure groups to boost their productivity by 25 to 30 percent in six to 18 months, depending on the size of the organization.
Riding healthy U.S. and global economies, strong demand for AI-capable hardware and other tailwind trends, the high-performance computing server market jumped 28 percent in the second quarter 2018 to $3.7 billion, up from $2.9 billion for the same period last year.
Cloud service adoption continues to grow, as traditional IT vendors react to market demand. Total spending on IT infrastructure products for deployment in cloud environments is forecast to reach $52.3 billion in 2018 — that’s year-over-year growth of 10.9 percent, according to the latest worldwide market study by IDC.