Cloud Computing is Headed Next

Cloud Computing is Headed Next

Hybrid and multi-cloud architectures, which are now in use, will transform into highly optimized app-centric, AI-driven environments in the future. According to Gartner Vice President Milind Govekar, “There is no business plan without a cloud strategy.” Govekar spoke ahead of the analysis firm’s November 2021 IT Symposium/Xpo. Organizations are pursuing a ‘cloud-first approach for onboarding new workloads, which is fueling the growth of public cloud adoption and interest, according to Govekar.

Gartner predicts that by 2025, more than 85 percent of organizations will have adopted the cloud-first philosophy, with more than 95 percent of new workloads being delivered on cloud-native infrastructure (up from 30 percent in 2021). According to the analytical company, it is predicted that cloud revenue would surpass non-cloud income in the relevant business IT markets’ during the next several years. “Anything that is not cloud-based will be regarded as legacy,” Govekar said. So what are the headwinds causing these clouds to spread over the corporate information technology (IT) landscape? Gartner highlighted four trends in August that it predicts will drive expenditure on public cloud services to surpass $480 billion by 2022. These trends are as follows:

Cloud ubiquity – “Hybrid, multi-cloud, and edge environments are expanding in importance, laying the groundwork for new distributed cloud models,” according to the report. According to the report, regional cloud ecosystems are being driven by “geopolitical regulatory fragmentation, protectionism, and industry compliance,” according to the report. 

Sustainability and the emergence of a “carbon-intelligent” cloud result of this rising emphasis on sustainability, cloud service providers are adopting more ambitious carbon-neutral business targets. Automated programmable infrastructure (API) from cloud infrastructure and platform services (CIPS) providers – “Gartner expects widespread adoption of fully managed and artificial intelligence (AI)/machine learning (ML)-enabled cloud services from hyperscale CIPS providers,” according to the research firm.

According to Gartner’s prediction, total expenditure on public cloud services would climb by 21.7 percent a year from now until it reaches $482 billion in 2022. Among the fastest-growing sectors were infrastructure services (which increased by 32.9 percent to $122 billion), desktop as a service (which increased by 30.4 percent to $2.7 billion), and application infrastructure services (which increased by 25.8 percent to $101 billion), according to the report. As a result, the Cloud is expanding and changing on some fronts. Following up on our last look at the market in mid-2021, we’ll look at some recent polls and analyst research to better understand where it’s headed next and what that looks like.

IBM: The Cloud is the Next Big Thing

In preparation for its October 2021 study, Cloud’s next leap: How to generate transformative business value, IBM’s Institute for Business Value, in cooperation with Oxford Economics, conducted a survey of 7,164 C-suite executives from organizations spanning 29 industrial sectors and 44 countries. The average revenue for the firms that participated in the study was $805 million. Among the report’s primary objectives was an examination of the present status of cloud-based digital transformation. To do this, the authors outlined four phases of cloud adoption that are “progressively more powerful”:

Cloud v1 – Purchasing infrastructure as a service and only paying for the services that are used;

Cloud v2 refers to purchasing cloud services from hyper-scale cloud providers using a credit card swipe in the Cloud.

Third-generation cloud computing (also known as cloud v3) refers to the current business push toward cloud computing as the default paradigm for application, compute, and networking infrastructure.

Cloud v4 – A new version of the Cloud that is on its way to becoming the default operational infrastructure for businesses changing.

According to IBM, the Cloud has already ‘passed the gap’ between early adopters and early majority, using Geoffrey A Moore’s classic technology adoption model. “As a solution to the high cost and laborious procedures associated with traditional on-premises data centers,” the company said. Business divisions experimented with software development by buying cloud services directly, according to IBM, and as a consequence, “high rates of outages and security breaches” were seen as a result of this “shadow IT,” according to the company’s analysis.

Following IBM’s analysis, cloud v3, which entails “migrating existing workloads to the cloud, updating applications, and constructing cloud “estates” made of cloud service providers and styles of cloud computing,” is now on its way to achieving early majority status. “Workload migration plans can be confused with cloud strategies, digital transformation initiatives often proceed without clear integration with cloud, and cloud technology can be implemented without the changes to cloud operations required to take advantage of what they have to offer,” IBM warns. “Workload migration plans can be confused with cloud strategies, digital transformation initiatives often proceed without clear integration with cloud, and cloud tech can be implemented without the changes to cloud operations required to take advantage of what they have to offer.” On the other hand, cloud v4, which is still in its infancy and is still in the early adopter phase, is “It recasts the whole company as the goal of cloud-enabled software development,” according to IBM’s research.

Furthermore, it blurs the lines between ‘the business and information technology “….. Early adopters of this sophisticated cloud deployment approach, according to IBM, may benefit from a “continuous first-mover advantage” if they are willing to overcome the high barrier to entry that exists. “Hybrid cloud/multi-cloud won and has emerged as the dominant architecture for enterprise cloud estates,” according to IBM’s report, which tested several hypotheses against survey data, one of which was that “Hybrid cloud/multi-cloud won and has emerged as the dominant architecture for data sharing using clouds to enterprise cloud estates.” 

Because hybrid/multi-cloud architectures are becoming more common, the success of such deployments will be determined by the available management tools. The following is a shopping list compiled by IBM from its respondents: The demand that ‘cloud operations spanning public, private, and legacy systems can be controlled from a single pane of glass is at the top of the list, with 85 percent of respondents agreeing. This is a requirement that will keep software suppliers busy for some time.

In addition to a lack of administration tools, a scarcity of qualified cloud administrators is also a hurdle to more advanced cloud implementations. However, according to IBM’s poll, a majority of respondents (54 percent) said that obtaining leadership talent was ‘Not a big impediment in our cloud estate,’ and slightly under half (47 percent) stated that they had no difficulty hiring employees with the appropriate skills and expertise.

HashiCorp’s Cloud Strategy 

HashiCorp, a software provider created in 2012 and specializes in multi-cloud infrastructure automation technologies, is one example. According to the findings of a poll of 3,205 IT experts from North America (39 percent), Europe (34 percent), Asia Pacific (30 percent), and Latin America (25 percent), the business issued its inaugural State of Cloud Strategy study in August 2021 (6 percent). In addition, company sizes varied from fewer than 100 people (28 percent) to more than 5,000 employees (30 percent), with software/services being the most prevalent industry (51 percent), followed by financial services (15 percent).

“The multi-cloud age is here, propelled by factors such as digital transformation, pricing concerns, and enterprises’ desire to avoid vendor lock-in. Incredibly, more than half of the respondents to our poll said that they had already seen economic benefits as a result of a multi-cloud approach “In a statement, Armon Dadgar, co-founder and chief technology officer of HashiCorp, added While many businesses have been successful in operationalizing multi-cloud, others have struggled to do so due to a lack of skilled workers, uneven processes across cloud environments, and teams operating in silos.

According to the poll results, 76 percent of respondents are currently using a multi-cloud architecture, with that number predicted to climb to 86 percent in two years. The most enthusiastic about multi-cloud were big organizations (>5,000 workers), with 94 percent expressing interest, followed by mid-size firms (101-5,000 employees) and small businesses (100 employees), with 84 percent expressing interest and 79 percent expressing interest.

At the time of the study (February 2021), AWS was the dominant cloud provider among the Big Three, with an 88 percent market share. This was also the case over the next two years, as expected. Microsoft Azure and Google Cloud were predicted to grow by 3 percent per year from now until 2023, when they would account for 77 percent and 64 percent of total cloud use, respectively. Meanwhile, the study revealed that the projected use of Alibaba Cloud is expanding, particularly in the APAC area, as follows:

As previously stated, more than half (53 percent) of respondents to HashiCorp’s poll thought that multi-cloud adoption had assisted them in achieving their business objectives. Another statistic that rises in importance as an organization grows in size is: 42 percent of small firms, 50 percent of mid-size organizations, and 64 percent of major corporations are affected. Several variables influence multi-cloud adoption; the most important is digital transformation (34%). The second most crucial aspect is avoiding vendor lock-in (30%), but the list goes on and on:

According to the findings of the survey, part of the reason that a higher percentage of large enterprises report business success from their multi-cloud usage maybe since these organizations also tend to implement correlated initiatives such as infrastructure as code, application delivery automation, container orchestration, and secrets management (i.e., digital authentication credentials). It is predicted that the “use of several of those connected technologies would almost treble in the following year,” according to the research.

However, in contrast to the findings of IBM’s poll, which indicated that skills shortages were less of a barrier than predicted, HashiCorp’s respondents ranked this problem at the top of the list of obstacles impeding their capacity to ‘operationalize’ multi-cloud by a significant margin: When several components of cloud deployments were taken into consideration – provisioning, networking, security, and application deployment – staffing and skilling concerns were high on the list of obstacles as well.

According to the survey results, multi-cloud projects are costly. A third (33 percent) of respondents spend more than $2 million per year, and 6 percent spend more than $15 million per year on multi-cloud initiatives. Only half of the organizations (49 percent) stayed within their 2020 budgets, with 39 percent overpaying and only 12 percent underspending their allocated funds. Shifting priorities (29 percent) and COVID-19 (21 percent) were the most significant causes of overspend, followed by a lack of guardrails to control resources (14 percent) and a lack of standardized tooling (14 percent) (13 percent).

When it comes to infrastructure automation tools — which is the core business of HashiCorp — respondents reported that building on open-source software and running it themselves was the most popular option across all cloud components. HashiCorp is a software company that specializes in infrastructure automation tools. While this DIY method was less common in the security sector, commercial tools as a service were more common in areas like provisioning, networking, and application deployment, among other things. Most respondents (94 percent) considered infrastructure automation tools to be “essential” or “very important,” with the most significant number of respondents stating that they were used in provisioning and application deployment. The most significant benefits of these automation technologies, according to some, we’re a better use of cloud resources and increased flexibility in IT infrastructure:

Prognosis

Most organizations choose to host new workloads on the Cloud, while the modernization and transfer of existing systems continue apace to new workloads. As a result, hybrid or multi-cloud architecture is the most widely used cloud architecture for various reasons, including the desire to avoid single-vendor lock-in and the requirement to identify the ideal ‘home’ for diverse digital transformation activities. Today’s emphasis is on overcoming the many obstacles to effective multi-cloud deployment, including skills shortages and process inconsistencies across cloud systems. In addition, when it comes to cloud computing, cost control is a constant concern, and infrastructure automation technologies are becoming more vital, especially when provisioning and application deployment.

The advantages and disadvantages of hybrid/multi-cloud architecture will no longer be discussed in five years. Instead, enterprises as efficient producers of industry-specific cloud-native applications will focus on the conversation, including autonomous workload deployment, optimization, and artificial intelligence (AI).

About Author

My name is Mukesh Jakhar and I am a Web Application Developer and Software Developer, currently living in Jaipur, India. I have a Master of Computer Application in Computer Science from JNU Jaipur University. I loves to write on technology and programming topics. Apart from this, I love to travel and enjoy the beauty of nature.

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