Looking Ahead: How Cloud Services Will Change in 2017

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Should You Use A Private Cloud System?

Hasn’t every company moved to the cloud? There’s a lot of hype out there about a company’s need for further development of cloud services. Over the past decade, many large organizations (and smaller ones) have had their chief information officer (CIO) consider whether to move enterprise solutions to a private cloud system. This kind of transition can benefit a large organization, but it takes considerable time for development.

As an alternative to building a private cloud system, a large organization can use public cloud providers. Both of these computing models have computing and storage benefits for large organizations and small- and medium-sized businesses (SMBs). In this blog post, we look at cloud trends for 2017, including why some CIOs are expected to move away from building private cloud systems due to various considerations.

Looking to the Past

Here, readers need a bit of context for the predictions that could affect the cloud in 2017, especially those with a limited IT background. According to CIO.com writer, Clint Boulton, Forrester’s recent survey found the following: “enterprise infrastructure technology decision-makers said that they are building private clouds, with 32 percent procuring public cloud services and the remainder planning to implement some form of cloud technology in the next 12 months. Also, 59 percent of respondents said they were adopting a hybrid cloud model.” This means, in the most basic sense, that the continued move towards the cloud will be big in 2017, and that more than half of companies growing their cloud resources will use a mixture of public and private clouds. This is the essence of a hybrid cloud model.

What Are the Predictions?

One of the predictions that Boulton reveals is the growth of the public cloud rate, which is expected to rise from $87 billion in 2015 to $146 billion in 2017. “The lion’s share of this growth will come from Amazon.com, Microsoft, Google and IBM, which have emerged as ‘mega-cloud providers,’ according to Forrester’s Dave Bartoletti.” There are also regional cloud providers that will help to fill in the gaps that are left by the mega providers. Regional providers help even as these four big providers continue to construct and expand their data centers.

How Do CIOs Manage Costs?

Boulton’s article points to the reality that many CIOs currently use multiple cloud providers to meet their company’s data warehousing needs. While they could use a hybrid approach, continuing to use some public cloud providers while building their private cloud facilities, the cost vs. benefits, mindset will continue to drive decision-making in the minds of CIOs.

In Pursuit of Economies of Scale

Large companies only stay relevant to their respectively large markets by continuing to pursue and achieve appropriate economies of scale. It’s important for technology folks within every business, from the small startup to the mega corporation, to create a dialogue with the top IT officer about the best approach to managing IT systems in the cloud. For example, if a company invests too much in increasing a company’s data center capacity, much time could be lost. That company’s tech dollars could be better spent elsewhere developing other kinds of capacity, and more of its data needs could be met by the public cloud. That being said, spending too much on existing software agreements with the major public cloud providers could drain a company’s budget. In essence, flexible cloud strategies that are scaled to the parts of the world where more data capacity is needed, will benefit the organization.

Looking around the world, more and more companies are realizing that they have emerging data needs. They must adopt software solutions that will help them meet their customers’ changing preferences, and they will need to store their data for later use. Data analysis makes it easier for companies to plan for the future.

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