Public cloud is growing. Private cloud is not. Big Data and Internet of Things is hot. Virtualization is not. These are just a few of the findings of the 2nd Watch enterprise cloud trends survey, just released. More than 400 IT managers and executives from large companies participated, and 64% of them said that they will spend at least 15% more in 2015 on public cloud infrastructure. All signs point to the fact that the public cloud is continuing to grow. Q3 earnings statements from both Amazon and Microsoft for their respective cloud services, AWS and Azure, were robust.
Companies are going to need some help though. As always, IT skills are at a premium. In our own conversations with customers, supported by the survey, CIOs and CTOs are looking for bright engineers who know how to manage and optimize workloads in the cloud. As well, the ability to natively design applications for the public cloud will be a critical competitive advantage in the coming year. The opportunity is there for any company – regardless of your size or industry. Large consumer goods are innovating with mobile apps that require not just savvy developers, but an IT organization that can leverage public cloud services to mash-up data and deliver cool new services that drive brand loyalty.
The trick is that each provider, such as AWS, operates differently. CIOs need specialists, and when they’re hard to find, using third-party experts can reduce risks and deliver faster ROI. 2nd Watch has years of diversified experience across many different project types, regimented training and continued learning programs for their employees that can supplement your IT staff.
A parallel challenge is that few large companies are ready to migrate their entire data center to the cloud just yet. With legacy applications and customer requirements, large companies typically still require or desire some systems to be hosted on their own data centers. Thus, cloud providers and technologies that are able to integrate data centers will see ample demand next year. Hybrid cloud terminology will still be popular with enterprise IT in 2015, according to our survey. However, this is not an end state but a state of transition in maintaining physical data centers while they migrate to public cloud.
The recent news that the AWS OpsWorks application management service (based on Chef) is now available for managing public cloud and on-premise servers is one sign of the growing flexibility that CIOs will have in managing workloads across their environments. Companies want to see more industrial-strength management tools that can bridge internal data centers and public cloud data centers and deliver a unified picture of the entire infrastructure.
IT executives are also looking for more help on the security front. The major public cloud providers are already investing heavily in this area, particularly AWS, but startups will play a significant role in bringing new endpoint security solutions to market in 2015. Survey participants said that security tools and services is the most underinvested category by cloud technology firms. I believe they will say differently in a year’s time. Software companies also have opportunities in modern IT management, with many companies demanding more automated options for performance monitoring, system management and change management in the cloud.
If you are interested in learning more about the best-in-class cloud management tools that are available today, schedule your free 2nd Watch Workshop now*.
*Applies to Enterprise Customers new to 2nd Watch with a specific use case to build the workshop around.
Read more on Enterprise Cloud Trends for 2015 in 2nd Watch CTO, Kris Bliesner’s, article in Data Center Knowledge – Planning for the Future: Enterprise Cloud Trends in 2015.
-Jeff Aden, EVP of Marketing & Strategic Business Development