Cloud Computing Industry Challenges - Goldstein Market Intelligence

Goldstein

TM

Market Intelligence

AUGUST 2020

EXAMINE CHALLENGES FOR CLOUD COMPUTING INDUSTRY Goldstein Market Intelligence

WRITTEN BY: Dennis Abraham Vice President Goldstein Market Intelligence

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Market Intelligence

INTRODUCTION Worldwide spending on cloud computing services reached USD 151.32 billion in 2018, a boost of 21.48% from USD 124.56 billion in 2018. Driven by the fact that organizations across all industries, from financial services to healthcare, are transitioning to being technology providers.

Top 10 cloud service providers - Alibaba, Amazon, Baidu, Facebook, Google, Microsoft and Tencent–collectively spent more than USD 61 billion in 2019 on data center infrastructure.

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2019

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CHALLENGES TO CONSIDER Cloud Spending vs. Global IT Spending Cloud market has grown exponentially, and it will keep growing at double-speed in the next decade, the Cloud spending is still just 5.00% of the global IT spending

While IT leaders are embracing the cloud because of the benefits it offers, they continue to face very significant cloud computing challenges, including the following:

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In 2018, security and spend are the top challenges. As companies become more experienced with cloud, the top challenge shifts. Security is the largest issue among cloud beginners, while cost becomes a bigger challenge for intermediate and advanced users.

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Hidden Cost of Cloud Migration When cloud computing first hit the mainstream, cost control was among its biggest promises. The move from capital expenditure to operating costs was what first attracted many companies. Following are the 6 hidden costs to cloud:

The Hidden Cost of Under-Optimized Resource Management

The Hidden Cost of Vendor Tactics

The Hidden Cost of Service Quality

The Hidden Cost of Making Cloud Work

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Traditional on-premise IT infrastructure deployments aren’t immune to any of these costs either! In fact, organizations increasingly turn to cloud alternatives because the traditional datacenter solutions are too difficult or resource-intensive to optimize for performance, cost, security, vendor flexibility and scalability, among other aspects of the IT strategy. And through the decades, cloud computing has consistently emerged as a more popular and better performing solution for small and midsize business firms across all those fronts.

Cloud cost management is becoming a larger issue for enterprises Cloud cost management is becoming a larger issue for enterprises and the move to containers may not be helping matters. Around 40.05% of all companies are overspending on cloud services. While containers are a tremendous means of developing and deploying applications, companies must properly provision cloud resources to meet application needs. The biggest issue is that cloud resources aren't being provisioned well for containers because there isn't the visibility to match the compute, container and app requirements. There are not sufficient ways to know if the box is big enough or small enough and customers don't have the visibility on how it rolls up into the node.

Upshot of IT Professionals conclude: Multi-cloud is becoming the new normal for enterprise deployments.

Containers are being adopted rapidly.

Cost optimization is a big priority for enterprises.

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Scan the QR code or click the link below for our study on future of cloud computing industry.

https://bit.ly/3av4qbW

About the author Dennis Abraham Ph.D, senior vice president at Goldstein Market Intelligence, leads GMI's syndicated health and wellness research. Before joining Goldstein Market Intelligence, Dennis held a variety of senior leadership positions in global and regional consulting roles covering consumer and retail insights across a broad range of healthcare categories. Dennis has been providing crosscategory strategic insights to healthcare brands for over 12 years on topics including digital disruption, ecommerce, and healthcare technology. Dennis holds a Ph.d from Havard University.

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About Goldstein Market Intelligence Goldstein Market Intelligence helping businesses to be successful at strategy and take informed decisions to grow the business in future. Goldstein Market Intelligence is one of the leading professional services firms, providing Intelligence Services, Consulting & Advisory and research related services to clients. We, at Goldstein Market Intelligence practice works side by side with chief executives and their teams to create effective strategies and secure alignment across the organisation. ŠGOLDSTEIN MARKET INTELLIGENCE

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