Cloud will increasingly be the default option for software deployment.
Gartner says a ‘cloud-first’ and even ‘cloud-only’, is replacing the defensive no-cloud stance that dominated many large providers in recent years.
Today, most provider technology innovation is cloud-centric, with the stated intent of retrofitting the technology to on-premises, it states.
"Aside from the fact that many organisations with a no-cloud policy actually have some under-the-radar or unavoidable cloud usage, we believe that this position will become increasingly untenable," says Jeffrey Mann, research vice president at Gartner, in a statement.
"Cloud will increasingly be the default option for software deployment. The same is true for custom software, which increasingly is designed for some variation of public or private cloud."
This does not mean that everything will be cloud-based, and concern will remain valid in some cases, says Gartner.
It says the extreme stance of having nothing cloud-based will largely disappear.
“Hybrid will be the most common usage of the cloud — but this will require public cloud to be part of the overall strategy.”
Technology providers will increasingly be able to assume that their customers will be able to consume cloud capabilities, it adds.
Vendors move from cloud-first to cloud-only
Gartner, meanwhile, says in three years, more than 30 per cent of the 100 largest vendors' new software investments will have shifted from cloud-first to cloud-only.
The now well-established stance of cloud-first in software design and planning is gradually being augmented or replaced by cloud-only. This also applies to private and hybrid cloud scenarios.
"More leading-edge IT capabilities will be available only in the cloud, forcing reluctant organisations closer to cloud adoption. While some applications and data will remain locked in older technologies, more new solutions will be cloud-based, thus further increasing demand for integration infrastructure," says Yefim V. Natis, vice president, Gartner.
"Rigid organisations cannot produce agile IT solutions. As delivery shifts more to the cloud, most IT organisations will have to reorganise to reflect the business realities of cloud computing,” says Natis.
These realities include continuous innovation and change, pervasive integration, competing with cloud providers for some initiatives, and crucial prevalence of influence over control in IT's relationship with lines of business.
While historically the greatest competitor to external service providers has been internal IT, Gartner says with spend shifts, structural reorganisations and the business realities mentioned above, cloud providers will be in the position to gain the upper hand.
The analyst firm likewise sees by 2020, more compute power will have been sold by IaaS and PaaS cloud providers than sold and deployed into enterprise datacentres.
The Infrastructure as a Service (IaaS) market has been growing more than 40 per cent in revenue per year since 2011, and it is projected to continue to grow more than 25 per cent per year through 2019, says Gartner.
By 2019, the majority of virtual machines (VMs) will be delivered by IaaS providers. By 2020, the revenue for compute IaaS and Platform as a Service (PaaS) will exceed US$55 billion — and likely pass the revenue for servers.
"With the growth of both bimodal computing and cloud provider offerings, software-defined enterprise data centres have become less centrally important than building a strong multi-provider management capability," states Thomas J. Bittman, vice president, Gartner.
"Unless very small, most enterprises will continue to have an on-premises (or hosted) data centre capability,” adds Bittman.
“But with most compute power moving to IaaS providers, enterprises and vendors need to focus on managing and leveraging the hybrid combination of on-premises, off-premises, cloud and non-cloud architectures, with a focus on managing cloud-delivered capacity efficiently and effectively."
Send news tips and comments to email@example.com
Follow Divina Paredes on Twitter: @divinap
Follow CIO New Zealand on Twitter:@cio_nz
- PMOs should evolve to support bimodal IT and digital business: Gartner
- Agile security in the cloud: Lessons from Xero
- Top 10 tech trends government CIOs should plan for in 2016
- NZ curriculum to include digital technology - but tech industry wants more
- CIO upfront: With the enterprise cloud, the journey is likely to be more important than the destination
Join the CIO New Zealand group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.