It's no secret that cloud computing brings agility, scalability and cost savings to today's enterprises, large and small alike. How will new changes in cloud computing transform the world? Will organizations continue to accept it at the same rate as before? Will cloud computing radically change the way businesses operate in 2019 and beyond?
According to Statista, the enterprise SaaS market has generated $20B in quarterly revenues in 2018. By the end of 2019, the market for cloud services could be worth as much as $170B. These numbers are not surprising since cloud computing has proven to provide a cost-effective solution for data storage and management for many organizations.
Let's take a look at some of the major cloud trends that, in our opinion, will shape the future of the cloud market in the years to come.
1. The Number of Cloud Services and Solutions Will Continue to Grow
According to Bain & Company, technology companies will continue selling cloud to the growing number of more mainstream organizations. It's anticipated that subscription-based software-as-a-service (SaaS) will balloon at an 18% annual growth rate by the end of 2020 and investment in platform-as-a-service (PaaS) will grow 38% from 2014 to 2026.
Many IT organizations continue to invest into cloud services, moving the substantial amount of workloads from server rooms to the public cloud. However, the caveat is that many companies mistakenly apply traditional datacenter rules to their new cloud environments. In reality, operating in the cloud demands a brand new approach that employs a whole new set of procedures and roles. In 2019, we anticipate that many organizations will struggle to find the right cloud operating model unless they discover the right solution to ensure stress-free cloud management.
2. More Businesses Will Turn to The Hybrid Cloud
Cloud adoption reflects the need to store the most sensitive data on a more secure private cloud while reserving the public cloud for less sensitive data such as web-based email, office applications and development environments.
Hybrid cloud is often called “the best of both worlds” as it combines the benefits of on-premises infrastructure and the public cloud. Hybrid cloud seamlessly moves applications between private and public instances allowing for additional deployment options and greater flexibility.
For more information about hybrid cloud, read our guide, Microsoft Cloud Services - A Complete Picture.
According to a research firm MarketsandMarkets, the hybrid cloud market is expected to reach $97.7B by 2023 - up from $33.2B in 2016 with the compound annual growth rate of 22%. These numbers show that many organizations, while still in the adoption mode, will continue to take the hybrid cloud route in the future.
3. Automation Will Play a Key Role in Simplifying Cloud Architecture
As more and more organizations move their workloads into the cloud, cloud architecture is becoming increasingly complex. In an effort to simplify cloud management and make it as fast, efficient and hands-off as possible, cloud admins will be seeking automation platforms that can help them set up, deploy, manage and monitor the health of the individual VMs and cluster servers with ease.
Since the hybrid cloud is capable of changing traffic patterns in real time based on the actual business needs, it is important to find the right automation platform that tracks traffic and adjusts workloads across the entire virtual environment.
4. Cloud Security Will Become More Important with GDPR
The introduction of GDPR allowed the implementation of the uniform laws regarding data protection. It has also improved the legal position of businesses operating within the European Union. Since GDPR focuses on the sensitivity of the entrusted information, enterprises operating within the EU will pay more attention to how and where their sensitive data is stored and what policies for data deletion are set in place. These policies and procedures can be addressed with robust service level agreements that will ensure a cloud service provider remains within GDPR regulations.
Additionally, any company operating under GDPR is responsible for keeping data safe and secure regardless of where it’s kept. As data breaches occur, the client company (and not the service provider) will be held responsible for any consequences. That’s why finding the right security solution that prevents altering or processing sensitive data without proper authorization will become the main focus for many organizations.
5. Backup and Disaster Recovery Will Become a Major Concern
According to the 2019 State of IT report, organizations will allocate approximately 15% of their IT budgets to backup and disaster recovery efforts. This percentage shows that companies that utilize public cloud will take security and compliance responsibilities very seriously, especially considering that AWS and Microsoft Azure have recently made it clear that their responsibility for security and compliance goes only so far under the Shared Responsibility Model. In this situation, companies will be left to rely on selecting their own cloud security solution that will effectively configure and manage controls for the guest operating system and applications, as well as for the security group firewall.
5nine Cloud Security is powerful and easy to use. It was designed specifically to give your IT and virtualization teams a simpler way to administer, secure and monitor cloud resources.
If there’s one thing we’ve learned from putting together this article, is that the cloud computing industry is always evolving. We can’t wait to see what 2019 has in store and will be watching closely to see if our expectations match reality. We are eagerly anticipating the inevitable surprises that happen along the way.
If you have questions about any of our software solutions, or would like to learn more about how we can help your business succeed, please don’t hesitate to get in touch.
I am an author, speaker and technical evangelist focussed on Microsoft Cloud management and security. I’ve held product management and product marketing roles at early stage startups and enterprise software vendors, all with an emphasis on Microsoft technologies. As the Senior Evangelist for 5nine, I get to share the 5nine story with audiences all over the world. I talk, I blog, I record videos, and I spread the word via social media.