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Cloud computing in 2019 – Three trends that every business needs to know

Niko Mourujärvi
05.08.2019 | Niko Mourujärvi

 

Pilven tila 2019 (1)

The popularity of cloud services continues to grow, and businesses that have already realized the benefits of cloud are looking to use them in increasingly efficient and versatile ways. This is no easy task, however, as the complexity and rapid development of the services can be a headache both for executives planning the strategy and for managers and staff dealing with daily routines.

Harnessing the benefits of cloud services is much easier when you know what is happening in the ever-changing market. This is why we have once again compiled a list of the latest trends that every business needs to know. 

Trend 1: Businesses are investing more and more in public cloud but not abandoning private environments altogether

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The benefits of public cloud are undeniable, and businesses have certainly realised this: according to RightScale, a staggering 91% of businesses now use a public cloud

The popularity of public cloud is rising in businesses of all sizes, but large companies in particular are planning to grow their public cloud spend considerably more rapidly than in previous years. 

This is no wonder, as public cloud is both scalable and easy to deploy. There is no need to invest in servers or commit to a certain level of server capacity for years to come: public cloud services can be flexibly scaled according to demand.

However, public cloud is not always the right solution, which is evidenced not only by the steady growth of private cloud services but also businesses’ cloud strategies: many companies are prioritizing hybrid cloud (a balanced combination of public and private clouds) over a strategy based solely on public cloud or solely on private cloud services. 

In fact, RightScale’s survey shows that almost half of large companies believe that the best way to tap into the benefits of cloud services is to have a smart hybrid strategy. 

Trend 2: More and more businesses are struggling with cloud governance

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The growing popularity of public cloud has made public cloud spend a significant new line item in IT budgets. In fact, companies are citing managing cloud spend as their top priority for the third year in a row.

However, the complexities of cloud infrastructure make cloud governance challenging and the associated costs difficult to control. 

A large percentage of businesses still have no clue as to how much of their cloud spend is actually wasted: RightScale’s survey shows that companies continue to grossly underestimate their wasted cloud spend and actually spend as much as 35% more than they need to.

Despite an increased focus on cloud cost management, few companies know the right steps to take. For example, automated policies, such as shutting down unused workloads or optimizing resources, are still greatly underutilized.

Considering the fact that companies leverage four or five clouds on average, eliminating manual management policies would bring substantial savings.

This is why we believe that, in future, cloud users will be prepared to invest more and more in careful strategic planning and implementation. Well-functioning cloud infrastructure not only cuts costs in the long term but also helps companies to use cloud services more and more effectively to boost their business.

Trend 3: Public cloud providers are going crazy for PaaS

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A considerable percentage of public cloud users have already become proficient in the daily use of cloud-native application environments. Cloud-native applications are sophisticated software suites and platforms that, unlike traditional server room components (such as computing, storage and network capacity), are designed to exist in the cloud. 

These kinds of services are typically provided in the form of either PaaS (Platform as a Service) or SaaS (Software as a Service). Especially popular are various kinds of DBaaS (Database as a Service) solutions as well as data storage and analysis services. 

The fact that cloud service providers are currently focusing on cloud-native applications is therefore hardly surprising: serverless architecture and machine-learning applications are among the most rapidly growing public cloud tools.

In which cloud are your workloads stored? What should you take into consideration when choosing a cloud service provider? Download our new Cloud Service Buyer’s Handbook and learn to make the right choices!

Click here to download the handbook and get a complimentary cloud service buyer’s checklist!

 

Niko Mourujärvi
Kirjoittaja Niko Mourujärvi
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