by Laura Medanich and Dennis Payton
Ask any seasoned Entrepreneur, market volatility and disruption create opportunity. As we emerge from the 2020 storm, what are the silver lining opportunities technologists and entrepreneurs can engage?
Infographic by Laura Medanich
With the pandemic-fueled mass migration to WFH (work from home) and increasing Mobile workforce acceleration, cloud spending went from a very nice growth market to burgeoning accelerated growth. Economic instability triggered by the pandemic is expected to push budget-conscious CIOs to migrate to cloud resources and maintain that acceleration.
Public Cloud Services IT spending is expected to increase to $304.9 billion (18.6% YoY growth) in 2021. Seventy percent (70%) of organizations say they are planning to increase their cloud spending in 2021[1].
“We’ve seen two years of digital transformation in two months.”
— Satya Nadella, Microsoft CEO[2] and past TiEcon speaker
This new market dynamic, heightened the need for compact - high-performance application scalability and compact serverless architectures to address demand for the mobile WFH workforce transition. End-user Software as a Service (SaaS) spending growth is forecasted at $117.7 billion for 20211 and envisage 500 million new Cloud Native digital apps by 2023[3].
Accelerated Pace of Cloud Adoption
Driven by Pandemic, WFH will help leapfrog corporate digital transformation as an additive to emerging technologies that demand scalability, reliability and continuous delivery of features and services to the market.
Emerging technology increasing demand for Cloud Computing and Services:
▪ Faster acceptance of new technologies: AI Engineering, 5G Mobility, Serverless Application architectures
▪ The need for multi-cloud deployment and management across those environments
▪ New set of challenges for CISOs/security and CIO regulatory and business compliance for diverse global privacy requirements
Factors driving the cloud market forward[4]:
▪ Tech companies driving customer migration to cloud environments
▪ Emergence of consumption-based IT - public cloud-like capabilities in on-premises and added security
▪ Shift of maintenance of legacy IT to new digital transformation initiatives
▪ Hybrid cloud has become central to successful digital transformation
Elevated technologies like quantum computing, open-source, containerization, 5G mobility and AI, are empowering organizations to operate their workloads on public cloud IaaS, PaaS with FaaS and CaaS jump starting native cloud development. All while avoiding another storm in maintaining enterprise GRC (governance & regulatory compliance) and preemptive protection in delivering compact, cost-effective, and secure application products and services.
[1] Gartner Newsroom Press Release, Stamford, Conn. November 17, 2020 "Forecast: Public Cloud Services, Worldwide, 2018-2024, 3Q20 Update."
[2] Business Standard Microsoft saw 2 years of digital transformation happen in 2 months: Nadella April 30, 2020
[3] Analytics Insight: Top Cloud Computing Funding and Investment in October 2020 by Vivek Kumar October 20, 2020
[4] International Data Corporation (IDC) - Cloud Adoption and Opportunities Will Continue to Expand Leading to a $1 Trillion Market in 2024, October 15, 2020