Nearly 60 percent of North American enterprises rely on public cloud, five times the percentage that did just five years ago, according to Forrester. And cloud adoption continues to grow at a staggering rate. Cloud computing is driving significant changes across many industries, and the cloud market is evolving just as quickly. Competition and customer demands are requiring cloud service providers to innovate faster, better, and more frequently. So what’s in store for 2019? More public cloud growth and more of, well, everything.
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More Cloud Spending
The public cloud market is projected to grow 17.3%, from $175.8 billion in 2018, to $206.2 billion in 2019. According to the RightScale 2018 State of the Cloud, 20% of enterprises with more than 1,000 employees plan to more than double their public cloud spend. 71% of enterprises will increase their public cloud spend more than 20%.
More ‘Big 3’ Dominance
AWS will continue to dominate the world’s cloud market this year, with Microsoft and Google showing growth as well. Since 2017, Gartner has stated that “AWS is the most mature, enterprise-ready provider, with the deepest capabilities for governing a large number of users and resources.” It’s safe to say that AWS will continue to pioneer new technologies and services in the cloud. Google will also gain ground in 2019, as it remains the most cost-effective option and has a new CEO at the helm. However, Azure has double the market share of Google and is expected to solidify its number 2 position enough that Google will have a hard time catching up.
More Hybrid Solutions
Microsoft rocketed to the number two spot in the cloud market because it marketed a hybrid cloud solution. Since many organizations have millions invested in legacy solutions and feel keeping data stored on-premises gives them more control, hybrid cloud strategies have caught on and will continue to be a popular option. AWS and Google have followed suit and expanded their hybrid offerings. With the acquisition of Red Hat, IBM is clearly looking to capitalize on the popularity of the hybrid cloud as well, and become a bigger player in the space.
More Multi-Cloud Strategies
RightScale State of the Cloud survey respondents are already running applications in 3.1 clouds and experimenting with 1.7 more for a total of 4.8 clouds used. Multi-cloud strategies are officially a thing, and their popularity is growing. While the multi-cloud approach may have started by accident, the benefits, such as avoiding vendor lock-in, performance optimization, a lowered risk of DDoS attacks, and improved reliability have become clear. CIOs are now recommending this approach and Gartner predicts that 70% of enterprises will be using a multi-cloud strategy by 2019.
The understanding of serverless and its benefits has hit the mainstream. Serverless enables faster and cheaper development, allowing organizations to innovate more rapidly and gain an edge over their competition. Amazon, Google, and Microsoft are strengthening their serverless offerings and encouraging their customers to take advantage of the cost savings and DevOps benefits the framework provides.
More Creation of “Cloud Centers of Excellence”
AWS’s Stephen Orban coined the term Cloud Center of Excellence (CCoE), the fifth of seven steps in his Enterprise Cloud Journey series. 57% of enterprises already have a central cloud team or CCoE with another 24% planning one according to the 2018 RightScale Survey. These central teams are focusing on planning which applications to move to cloud (69%), optimizing costs (64%), and setting cloud policies (60%). These teams are also typically tasked with educating and holding other IT teams compliant to cloud optimization practices. As enterprises become more cloud dependent, CCoEs will play a critical role in achieving cloud fluency throughout the organization.
More Demand for Cloud Skills
More is a persistent theme throughout our (and everyone else’s) 2019 cloud predictions. A critical component for achieving the levels of growth and change predicted is MORE cloud talent, and organizations are feeling the skills gap. Cloud computing is the number one most in-demand hard skill desired by employers for the second year in a row. Companies are looking for skills, such as cloud migration, multi-cloud deployment, serverless architecture, machine learning, artificial intelligence, and automation. They’re also paying a premium for engineers with cloud computing certifications. Faced with a hyper-competitive hiring market, many organizations are investing in team training and certification programs to level-up their existing teams. A Cloud Guru serves the engineers and organizations wanting more: more cloud skills, more innovation, more money, more success.
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