Happy New Year! We are now half way through January and with a new year comes new predictions for how companies plan to succeed in 2017. And we at Racemi are betting big on the cloud. But we’re not the only ones. In fact, a recent IDG Enterprise Survey said the average company expects to move 59 percent of its IT environment to the cloud by the end of 2017.
Whether that expectation turns into reality or not, below we’ve outlined our executive’s predictions on the cloud industry and what changes we might see come to light this new year.
It’s Time to Get Serious About Moving to the Cloud
Currently, less than 20 percent of enterprises are operating in the cloud, but in 2017 organizations will realize that it’s time to get serious and instead of just dabbling in the cloud, enterprises will adopt a more aggressive cloud approach. This widespread cloud adoption will increase some operational delays. For example, binding data center contracts and the large amount of servers some enterprises have (in some cases 30K+) will affect how quickly a company can move to the cloud. However, by 2018 I think we’ll experience less of those delays and businesses will be able to move to the cloud more swiftly. Each day that a Global 2000 organization waits and doesn’t commit to a digital transformation and cloud-first strategy they are losing a day to their competitors.
The CIO Divide Will Deepen and More Retirement Plans will be Made
In 2017 you will see reorganization in 35 percent of the global 2000, simply due to a lack of commitment from CIOs to become more modern and compete more fiercely with competitors. There are two types of CIOs: ones who are hesitant and conservative and ones who are agile and willing to experiment. In 2017 and into 2018, the CIOs who are not willing to try new ideas will simply be pushed out of their organizations and replaced with individuals who have more of a “maverick-like” mindset when it comes to innovation. Organizational transformations such as moving to the cloud are already taking place. So if CIOs are not preaching this vision on a daily basis, they should start planning for their retirement.
Budgets Will Receive a New Line Item
In 2017, 75 percent of enterprises will implement a new line item in their quarterly and yearly budget meetings – the Cloud Center of Excellence (CCoE). Currently only 5 percent of enterprises have it, but it’s gaining momentum in a way that businesses cannot ignore. Whether operating in Amazon, Azure or both, the CCoE is focused on implementing cloud best practices and ensuring employees working in IT are certified and knowledgeable on all things cloud. Once organizations understand the importance of investing in CCoEs, it is a no-brainer and they will find the budget to make it happen.
Businesses Compete by killing their Data Center
CEOs and boards will put top priority on being more competitive and nimble in their market in 2017, consistently asking themselves, “What is holding us back from being more profitable?” In searching for that answer they will turn to their data center and their infrastructure in order to figure out how to better compete. In order to gain market share, they will have to lead through a digital transformation that drops all dead weight; and in many companies, that will mean dropping their data centers for a cloud strategy that drives digital products and digital experiences. If your companies are not working on solutions that innovate at the speed and scale of the cloud, and using the artificial intelligence to drive your digital strategy – you can be one of competitors are and they will be unstoppable if you do not get out of your current datacenters to compete on a level battlefield. In 2017 migrating their businesses to the cloud will be one of the non-negotiables CEOs and boards will realize and act on.
Public Cloud and Security: Breaches are Inevitable, So Companies Need to Prepare
When it comes to cloud and application security in the enterprise, the reality is this— breaches will occur and 2017 won’t be any different. However, what will gain momentum in the coming year is how companies will embrace this new reality and start to deploy applications with the ability to protect, detect and respond to breeches within the applications themselves, instead of relying on traditional perimeter-based security. For example, in terms of protection against breeches, next gen applications will include proven identity management, multi-factor authentication and full data encryption (at both rest and in flight). In terms of detection of breeches, next gen applications will include audit mining and anomaly detection, combined with monitoring and alerting. In terms of responding to breeches, next gen applications will include comprehensive incident management, combined with data isolation and application recovery technologies.
2017 is the year that applications begin to meet the security threat head-on.
Serverless Computing is on the Rise, but Not for Enterprises
Serverless computing will gain momentum in 2017. Serverless computing is highly appealing because costs are based on usage rather than on the management of servers. While enterprises won’t be keen on adopting serverless computing due to the risk of vendor lock-in, smaller businesses from startups to midsized companies will find the increased agility and the reduced time to market appealing.
2017 is the Year Azure Sets Fire
In 2017 Azure cloud’s popularity will rise as companies realize Microsoft’s credibility in the enterprise. Furthermore, Microsoft’s hybrid cloud platform, Azure Stack, which enables customers to deliver Azure services from their own datacenter, will resonate with verticals in highly regulated fields like financial, insurance, healthcare and government.
The Cloud Market is Ripe for Consolidation
In 2017 the “agent wars” will take full effect. These “agents,” or companies who specialize in cloud tools like discovery, application performance, cloud performance, etc., will begin to consolidate. They all have different purposes and core benefits, but they overlap to a degree. So next year we will see these tools start to consolidate so that companies won’t have to implement multiple solutions to deploy a cloud strategy.
If you haven’t already been preparing a transition to the cloud, 2017 is the time to start. Don’t let your competitors pass you up in 2017. Be the maverick of your organization and be on the forefront of innovation. In the end, your customers will thank you.