10 Cloud Predictions for the Coming Year

May 30, 2016 by Lore Engineering Team

The cloud has enabled organizations to collaborate, develop, and produce faster and easier. As people turn to the cloud because of easy accessibility, cloud computing providers are looking to provide more and more functionality. Last year was a big year for the cloud, but the upcoming 12 months is going to be an even bigger.

As cloud technology advances, many users wonder how it will improve. Researchers have been surveying and observing cloud providers closely to assess trends in the cloud market. The following are 10 predictions for the coming year, which could help to position organizations to benefit from the cloud as much as possible.

1. Commodity Cloud Will Rise Above Enterprise Cloud

Amazon Web Services (AWS), Microsoft, and Google are the three biggest players in cloud computing. Over the past few years, many large companies such as HP, Verizon, and CenturyLink have tried to compete using enterprise public clouds. All of them achieved some success in the beginning, but most users reverted to the commodity cloud of Google, Microsoft, and AWS.

With this shift away from enterprise public clouds, commodity clouds will remain at the top spot due to their self-designed hardware and easy software control. Commodity clouds offer organizations a central location to work on common concerns such as compliance, jurisdiction, and security. This enables accessibility to more people without having it public, which will help to reduce security threats.

2. Businesses Will Use Hybrid Cloud More Efficiently

Hybrid cloud is a computing environment that uses two platforms:

  1. On-premise, private cloud
  2. Third-party, public cloud

The hybrid cloud provides businesses with more flexibility and options for data deployment. For example, highly sensitive information can be stored on-premise in a private cloud, while less sensitive data can be stored on a third party cloud accessible to many more people. By using a third-party public cloud for some of the data, hybrid cloud computing services cost a lot less. This makes hybrid cloud computing services an easy choice for many businesses.

3. Native Cloud Applications Will Be Preferred

Applications deploy faster than other platforms, but they are much harder to develop. This is why traditional infrastructures such as software and on-site servers have experienced such a long and successful run. As more people learn how to develop cloud-native applications that provide speed and functionality, the less IT organizations will want to continue the infrastructure they’ve used for years.

4. Security is More Important Than Ever

When cloud computing started, businesses were wary of security vulnerabilities. For this reason, users only used the cloud for less-critical data. As cloud usage has grown, security companies have made tremendous strides in securing the cloud. As people hear and experience greater security features, they will grow more comfortable and more willing to use the cloud for more sensitive data.

In addition, this upcoming year will be one in which many organizations will look to cloud computing as a protection from security threats. To those that trust cloud storage, the cloud serves as a holding place for sensitive information in case their computers are hacked. Markets and Markets believes the cloud storage market will grow from $18.87 billion in 2015 to $65.41 billion by 2020, and using the cloud enhanced security features may be the driving force in the market’s growth.

5. The Cloud Becomes More Compliant with Regulation Requirements

Many enterprise organizations have been unable to use cloud computing due to it not satisfying regulation and compliance requirements. This is going to be less of an issue in the coming year. Even the government has made changes to their regulations, so they can be more cloud-friendly. It’s expected that enterprise organizations will soon follow suit.

6. Increased Spending on Hyper-Converged Cloud Platforms

Cloud architectures will likely be built on hyper-converged platforms. These platforms increase speed and improve performance, which is exactly what most users want. But that’s not the only thing hyper-converged cloud platforms do. Hyper-converged platforms don’t need as much upkeep, so they keep maintenance costs low. Speed, performance, and affordability are the reasons IDC researchers expect spending on hyper-convergence platforms to double from $806.8 million in 2015 to $1.6 billion in 2016.

7. Development and Testing Will Move to the Cloud

Development and testing demand tedious exchanges, which slows the production process down by as much as 80 percent. The cloud delivers an environment where developers and testers can work together with instantaneous exchanges to speed up the process. Once the application is complete, the application can be brought back on-premises for production. Experts predict IT teams will move all of their development and testing to the cloud by 2025.

8. CEOs Will Expect Analytics on the Cloud

CEOs want on-demand analytics. With cloud-based, self-service tools offering the analytics and collaboration needed to take action quickly, CEOs won’t need to wait on IT departments. According to a TDWI survey, respondents admit they are dependent on IT for analytics, but will be less likely to be that way in two years because of the advancements in self-service apps.

9. The Cloud Will Become the De Facto LoT Platform

LoT will give the cloud the strength it needs to become the preferred environment for emerging networks of sensors and devices. According to Marc Olesen, senior vice president and general manager of cloud solutions at Splunk, “As organization increasingly bring loT devices to market, cloud will be the de facto platform for collecting and analyzing data generated by these loT devices and to ensure their uptime and performance.”

10. Cloud Providers Increase Transparency

In 2015, Amazon pulled back the curtain on their cloud business. The financials (revenues and margins) are important in showing users the true value in the services they offer. Microsoft and Google will likely do the same in the coming year. Forrester Research believes this trend will continue leading IBM and VMware to do the same.

The cloud is moving forward quickly with commodity, hybrid, and hyper-converged platforms. Users will become more comfortable with the security and functionality of cloud-based applications after seeing how other organizations are using them and the success providers have achieved. This will be a great year for organizations interested in transitioning to the cloud.

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