Why Cloud Computing Is The Most Disruptive IT Force
Source – cxotoday.com
Cloud computing is one of the most disruptive forces facing the Information Technology sector. This statement is not without justification. Let’s cast a glance at the enormity of the phenomenon. According to the Bain & Company research report “The Changing Faces of the Cloud,” globally, the cloud IT market revenue is projected to increase to $390 billion in 2020 from $180 billion, translating into a compound annual growth rate (CAGR) of around 17%.
The report also points out that cloud demand accounted for 70% of related IT market growth in 2015. Moreover, 48 out of Fortune Global 50 companies have announced plans for cloud adoption for a range of IT applications. The cloud market will continue to gain momentum as businesses shift from legacy systems to cloud-based ones, with an increasingly higher number of organizations pursuing digital business strategies.
“Cloud computing represents the biggest IT industry disruptions in several years. CIOs will need to put their heads together in order to aid their company successfully and safely navigate the cloud journey, says Shashank Dixit, CEO, Deskera, a global leader in cloud tech.
While premise-based IT software and tools have their own advantages, the global trend is for cloud based applications since they offer more connectivity and functionalities than legacy systems. Moreover, enterprises are naturally gravitating towards it as the technology is reasonably reliable, affordable, and provides them access to other new and emergent technologies as well as high end skills. The cloud boom is also propelled by the fact that enterprises are trying to improve performance and productivity over the long term. Looking at the tremendous response for cloud services, several IT companies are designing applications meant solely for pure cloud play.
“The overall global public cloud market will mature, and its growth rate will slightly slow down from 17.2% in 2016 to a 15.2% increase in 2020,” says Sid Nag, research director at Gartner. “While Brexit and other growth challenges exist, some segments such as financial SaaS applications and the PaaS user markets will still see strong growth through 2020. As buyers intensify and increase IaaS activity, they will be getting more for their investment: ongoing enhancement of performance, more memory, more storage for the same money (which will drive increases in consumptions) and increased automation in traditional IT outsourcing (ITO) delivery,” added Nag.
In this fast paced world of technology, enterprises must leverage technology to stay ahead of competition. And they must choose wisely. There is a huge market that needs to be explored particularly since the reach of the Internet (including both 3G and 4G services) and the levels of automation and digitization rise exponentially.