According to a new forecast from the International Data Corporation (IDCWorldwide Quarterly Cloud IT Infrastructure Tracker, total spending on IT infrastructure for deployment in cloud environments is expected to total $46.5 billion in 2017 with year-over-year growth of 20.9%. Public cloud data centers will account for the majority of this spending, 65.3%, growing at the fastest annual rate of 26.2%. Off-premises private cloud environments will represent 13% of cloud IT infrastructure spending, growing at 12.7% year over year. On-premises private clouds will account for 62.6% of spending on private cloud IT infrastructure and will grow 11.5% year-over-year in 2017.

Start your cloud journey with thoughtful planning

Moving applications to the cloud requires careful thought and planning. Organizations migrate applications to the cloud for many reasons – lowering cost of IT due to economies of scale, scalability due to elastic consumption, operational instead of a capital expense and the ability to test and provision a new application quickly and thus a faster time-to-market. A cloud-only approach may not always be the best solution for all your applications. A careful design may drive a hybrid deployment that adheres to enterprise security and disaster recovery policies while enabling innovation through self-service and automation.

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Address the needs of the key constituencies

Many enterprises are in the midst of this transition to the cloud, whether moving to a public cloud, building their own private cloud or managing a hybrid deployment. In this fluid environment, where new services are being frequently added and old ones updated, the new paradigm requires support for needs across multiple environments and across many constituencies – an IT administrator, an application developer, DevOps and tenants.

This fluidity creates a unique challenge of how to make advanced services, such as application delivery and security simpler to consume, maintain, and address the need for faster deployment times across multiple environments, including private data centers and various public cloud providers.

Lacking the tools to address their unique requirements, development teams select the cloud infrastructure in an adhoc basis, and the organization and the network administrators lose visibility and control yet remain accountable for SLAs.  This inability to appropriately plan can lead to significant cost impact in future as services scale.

Cloud Service Providers have a unique set of challenges

The Cloud Service Providers (CSPs) have an additional set of challenges. CSPs are increasingly concerned about the rapid growth and expansion of Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform into their markets. Hosting providers that only provide commodity services, such as co-location and web hosting, have realized they are one service outage away from losing customers to larger cloud providers. In addition, many CSPs that provide managed services are struggling to grow because their current business is resource intensive and difficult to scale. In order to survive this competitive landscape, CSPs must offer their customers:

  • Cost predictability for their organizations, customers and tenants
  • Value-added advisory services, such as technical and consulting opportunities
  • Self-service to reduce resources via the ability to automate and integrate with a customer’s existing systems
  • Solutions that span both private and public cloud infrastructure

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Both enterprises and CSPs are looking for economical solutions to quickly scale, automate and deliver a differentiated Infrastructure-as-a-Service (IaaS) offering to their customers. To increase their value to their end customers (tenants), both CSP and enterprises are increasingly looking to create and offer hybrid cloud solutions that span private and public cloud as well as existing physical and virtualized data centers.

For additional details:

Read “Flexibility Is The Name of the Game” to learn more.

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