Five Predictions for 2025 on Cloud Computing

what is cloud computing and how can it help for my business? Cloud computing is storing and accessing programs and data over the internet instead of a computer hard drive.  The cloud is another name for the virtual drive. If data is stored on the hard drive or programs are run from the hard drive, it’s called local storage and computing. 

Industry finding cloud computing to be more cost-effective in the long-term are waiting to discover how cloud computing will evolve and what it’ll mean for their future. The near-term future can be much better because of some massive changes that cloud computing is triggering in the global economy, and I’d like to share my views on some of those megatrends and what they mean for business. That’s why these five predictions are so important, and why they should bring smiles to the faces of CEOs. 

Prediction #1: By 2025, 80% of IT spending will be in the cloud, not on traditional IT.

The implications of this are enormous, and easy to overlook. Today, 80% of IT spending goes to traditional IT activities -- stuff like upgrading applications, integrating mismatched components that were never designed to work together into Rube Goldberg contraptions – and tuning, testing, monitoring, patching, and other maintenance. Let’s say another 5% is spent on cyber security applications and adapting to new compliance requirements. This leaves just 15% for innovation – for the latest technologies that can actually help your top line grow by delighting customers with new products and services way beyond what you could deliver in the past.

Here’s a way to flip that ratio in your company’s favor. Generally speaking, companies can reduce costs 30% by simply moving to the cloud – reason enough for most companies to make the move (and many are). Think of that: You can strip out 30% of your IT costs without any reduction in performance and reliability.

But there’s more to it than that; in a cloud environment, your vendor is responsible for security – and is better at it. Your cloud vendor has more redundancy and reliability built into their network than corporate networks can afford. And your cloud vendor is constantly innovating and improving the quality of your applications, because otherwise you’ll switch to another cloud provider.What’s more, there’s no reason for companies to manage servers that are used for developing and testing new applications. That’s why it is already predicted a year ago that, by 2025, 100% of dev/test, as it is known, will take place in the cloud.

Prediction #2: The number of corporate-owned data centers will drop by 80%.

The need for corporate-owned data centers will decline as workloads increasingly shift to the cloud. The only reason companies will hold onto those data centers will be for legacy applications that are no longer supported by their vendors, or that for some other reason cannot be shifted to the cloud. This is a huge step for many companies, with implications far beyond cost-cutting because it dramatically exemplifies a decisive redirection away from big, complex, and costly physical assets in our increasingly digital world.

Everything else, even applications that are developed in-house, will be developed and run on platforms and infrastructure that sit in the cloud. Not only will companies save on software and hardware costs, but on the electricity to power and cool systems and facilities, and on hands-on administration.

Prediction #3: 80% of IT spending will be on innovation.

It is a preceding prediction is that: as big and disruptive a change in business models as we’ve seen in our lifetimes. When companies can spend 80% of what they spend on routine maintenance on innovation instead, it will unleash a new wave of customer-facing applications, better tools for internal collaboration, and other innovations that customers and employees alike want, need, and demand.

The underlying economics of cloud are well understood by most IT folks by now. And when CXOs, and boards of directors begin to understand this as a way of changing business models -- not just IT models! -- You will see applications and infrastructure shift to the cloud at a breakneck pace. The progression will be geometric, not linear.

 Prediction #4: Further segmentation and more education

Consumers are start to understand the differences between public, private, and hybrid cloud deployments. Companies can expect to see greater segmentation and better education about which type of cloud works best for them. More industry leaders will be working to establish boundaries when it comes to business-critical workloads and security measures.

 Prediction #5: More hybrid cloud adoption and increased cloud development

Some industry leaders say that 50 percent of companies will have hybrid clouds in this year. CIOs will be pushing for more strategies implementing the cloud although they won’t always be pure cloud implementations since it can be very difficult to do so. The hybrid cloud provides a combination of strengths like management convenience and on-premise solutions. CIOs can expect to see more resources going towards cloud development since 85 percent of new software are being built with the cloud in mind. Enterprises can expect to see an increase in third-party, enterprise and commercial developers and contributors to cloud application ecosystems, marketplaces, and API exchanges.

Courtesy:

Tech.co

Mark V. Hurd