As the new year approaches, it’s easy to forget how far we’ve come when it comes to cloud computing. Moving forward, cloud as we know it isn’t only on a path of transformation; it’s also a path for transformation. IDC predicts that by 2020, public IT cloud services will account for 58 percent of the $355 billion combined spending on traditional plus public cloud applications, development and deployment tools, infrastructure software, storage, and servers.
However, the future won’t be dominated by public cloud services. In fact, the dominant cloud model for the foreseeable future will revolve around hybrid cloud systems. Gartner analysts said that by 2020, cloud, hosting and traditional infrastructure services will come in more or less at par in terms of spending.
“As the demand for agility and flexibility grows, organizations will shift toward more industrialized, less-tailored options,” said DD Mishra, research director at Gartner. “Organizations that adopt hybrid infrastructure will optimize costs and increase efficiency. However, it increases the complexity of selecting the right toolset to deliver end-to-end services in a multi-sourced environment.”
Gartner predicts that by 2020, 90 percent of organizations will adopt hybrid infrastructure management capabilities. “This means that by 2020 traditional services will coexist with a minority share alongside the industrialized and digitalized services,” Mishra said.
Let’s look out to

 

As the new year approaches, it’s easy to forget how far we’ve come when it comes to cloud computing. Moving forward, cloud as we know it isn’t only on a path of transformation; it’s also a path for transformation. IDC predicts that by 2020, public IT cloud services will account for 58 percent of the $355 billion combined spending on traditional plus public cloud applications, development and deployment tools, infrastructure software, storage, and servers.
However, the future won’t be dominated by public cloud services. In fact, the dominant cloud model for the foreseeable future will revolve around hybrid cloud systems. Gartner analysts said that by 2020, cloud, hosting and traditional infrastructure services will come in more or less at par in terms of spending.
“As the demand for agility and flexibility grows, organizations will shift toward more industrialized, less-tailored options,” said DD Mishra, research director at Gartner. “Organizations that adopt hybrid infrastructure will optimize costs and increase efficiency. However, it increases the complexity of selecting the right toolset to deliver end-to-end services in a multi-sourced environment.”
Gartner predicts that by 2020, 90 percent of organizations will adopt hybrid infrastructure management capabilities. “This means that by 2020 traditional services will coexist with a minority share alongside the industrialized and digitalized services,” Mishra said.
Let’s look out to

 

I’m a big fan of hybrid and multi-cloud solutions. I believe, as an industry, we’re no longer seeing the future organization as one that has everything in one cloud provider. Rather, the future is very much more hybrid.
Organizations across almost every vertical and company size see hybrid cloud solutions as the gateway to digital transformations and new types of competitive advantages. These initiatives are being driven by the business layer, and not just IT leaders.
“Overall, there are very real trends toward cloud platforms, and also toward massively scalable processing. Virtualization, service orientation and the Internet have converged to sponsor a phenomenon that enables individuals and businesses to choose how they’ll acquire or deliver IT services, with reduced emphasis on the constraints of traditional software and hardware licensing models,” said Chris Howard, research vice president at Gartner. “Services delivered through the cloud will foster an economy based on delivery and consumption of everything from storage to computation to video to finance deduction management.”
See also: Using Automation as a Change Agent for IT Transformation
A recent WSJ article said CIOs are knitting together a new IT architecture that comprises the latest in public cloud services with the best of their own private data centers and partially shared tech resources. IDC points out that overall spending on IT infrastructure for off-premises cloud environments—both

 

I’m a big fan of hybrid and multi-cloud solutions. I believe, as an industry, we’re no longer seeing the future organization as one that has everything in one cloud provider. Rather, the future is very much more hybrid.
Organizations across almost every vertical and company size see hybrid cloud solutions as the gateway to digital transformations and new types of competitive advantages. These initiatives are being driven by the business layer, and not just IT leaders.
“Overall, there are very real trends toward cloud platforms, and also toward massively scalable processing. Virtualization, service orientation and the Internet have converged to sponsor a phenomenon that enables individuals and businesses to choose how they’ll acquire or deliver IT services, with reduced emphasis on the constraints of traditional software and hardware licensing models,” said Chris Howard, research vice president at Gartner. “Services delivered through the cloud will foster an economy based on delivery and consumption of everything from storage to computation to video to finance deduction management.”
See also: Using Automation as a Change Agent for IT Transformation
A recent WSJ article said CIOs are knitting together a new IT architecture that comprises the latest in public cloud services with the best of their own private data centers and partially shared tech resources. IDC points out that overall spending on IT infrastructure for off-premises cloud environments—both

 

Digital transformation is a major part of new initiative driven by organizations to become a part of a new, digitally-connected market. These efforts can range from entire data center and cloud deployments to specific applications being leveraged for mobility and easier access.
“Digital transformation is at the center of business strategies as CEOs endeavor to capture the opportunities available in the digital economy,” said IDC Research Vice President Bob Parker. An IDC study shows that the worldwide digital transformation is impacting many major trends in the areas of leadership, customer experience, information, operating models, and workforces.
IDC pointed out that by the end of 2017, two-thirds of the CEOs of the G2000 will have digital transformation at the center of their corporate strategy. And, by 2020, 60 percent of the G2000 will have doubled their productivity by digitally transforming many processes from human-based to software-based delivery.
“Digital transformation is not just a technology trend, it is at the center of business strategies across all industry segments and markets,” added IDC Research VP Bob Parker. “Enabled by the 3rd Platform technologies of social, mobile, analytics, and cloud, digital transformation represents an opportunity for companies to redefine their customers’ experience and achieve new levels of enterprise productivity. Investment related to digital transformation will constitute the majority of growth in

 

(Bloomberg) — Amazon.com Inc.’s cloud unit dominates the market for computing power delivered over the internet. But there’s one area where it has lagged: artificial intelligence tools that let customers parse data, understand speech and recognize images without buying their own expensive machinery.

Amazon Web Services has quickly added AI enhancements, hired experts in the field and signed up customers like software maker Intuit Inc. and insurer Liberty Mutual Group Inc.
See also: Amazon Agrees to Sell Some Cloud Assets to Chinese Partner
Amazon is playing catch-up because this market is likely to fuel growth in cloud computing - and right now Microsoft Corp. and Google are using it to pry customers from AWS. Sales of software for creating AI applications are forecast to rise about 40 percent through 2021 to more than $8 billion, according to research firm IDC. Growth for those products in the cloud will be even higher, said IDC analyst David Schubmehl, as companies turn to internet-based services to assemble and run increasingly complex programs that use the latest AI advances.
But for a company that boasts one of the most successful consumer AI gadgets — Amazon’s Echo devices — AI cloud services have been slow to arrive. Google and Microsoft have beaten AWS in rolling out early products and have natural advantages that stem from their large research labs stocked with AI experts and years of experience in

 

(Bloomberg) — Amazon.com Inc. agreed to sell some of its Chinese cloud assets to its local partner but said it’s committed to a domestic market for internet-based computing that could be worth $30 billion.
Beijing Sinnet Technology Co. will buy servers and other unspecified “operational assets” in the country’s capital from Amazon Web Services for as much as 2 billion yuan ($302 million), it said in a filing to the Shenzhen stock exchange. The sale is intended to comply with government regulations and improve service, it said.
Amazon’s business in China has been hollowed out by the rise of local rival Alibaba Group Holding Ltd., which has come to dominate e-commerce and is expanding in cloud computing with new data centers. Amazon, the global leader in internet computing, is vying for a slice of domestic spending on cloud services and gear that IDC estimates will reach $30 billion by 2021. But the U.S. company has to deal with laws introduced this year that mandate the storage of data within the country and bolster government control over the movement of information.
On Tuesday, the e-commerce giant rejected media reports tying its asset sale to an imminent departure from the Chinese market. It said instead it was selling hardware to comply with laws that forbid ownership or operation of certain types of cloud technology.
“AWS did not sell its business in China and remains fully committed,” the company said in an emailed statement. “We’re

 

Cloud computing companies in the U.S. could lose more than $10 billion by 2020 as a result of the Trump administration’s reputation regarding data privacy, according to Swiss hosting company Artmotion.
A whitepaper published by Artmotion suggests that growth rate in U.S. cloud revenue relative to the rest of the world will decline significantly more than previously forecast by IDC.
See also: Tech Goes From White House to Doghouse in Trump’s Washington
IDC’s Worldwide Public Cloud Services Spending Guide predicts that the U.S. will account for 60 percent of cloud revenue worldwide to 2020. The same research, however, suggests revenue growth in the U.S. will be lower than that in all seven other regions analyzed by IDC, and according to Artmotion does not take into account the sharply falling confidence businesses have in the capacity of U.S. companies to protect the privacy of data in the cloud.
“While these figures may be concerning for U.S. service providers already, they don’t take full account of the scale of the disapproval of President Trump’s actions since taking office,” according to Mateo Meier, CEO of Artmotion.
Artmotion’s own research shows that half of U.S. and U.K. citizens feel online data privacy is less secure under President Trump. Further, 24 percent are most concerned about their own government, while only 20 percent consider the Russian government most concerning, and 15 percent fear the Chinese government. Both Russia and

 

When the term “cloud computing” took the market by storm – it left a lot of people feeling rained on and confused. There were a lot of questions being asked… What does it mean for me? How does this impact my business? Do I need to forklift everything and move into the cloud to be competitive?
It really feels like the same is happening with the term “digital transformation.” It’s such a broad topic that can have so many impacts on a variety of organizations and use-cases. Much like cloud, there is beginning to be more clarity into what it means to become a digitally-enabled organization. However, before we go on, it’s important to note that this trend is absolutely becoming a reality for many organizations. So, if you’re not on board yet – hopefully this will help clear somethings up.
See also: How to Change Executive Perceptions around Digital Transformation
IDC recently predicted that digital transformation will attain macroeconomic scale over the next three to four years, changing the way enterprises operate and reshaping the global economy. This is the dawn of the “Digital Transformation (DX) Economy.”
“We are at an inflection point as digital transformation efforts shift from ‘project’ or ‘initiative’ status to strategic business imperative,” said Frank Gens, Senior Vice President and Chief Analyst at IDC. “Every (growing) enterprise, regardless of age or industry, must become ‘digital

 

IT budgets will continue to favor cloud deployments over non-cloud IT infrastructure throughout 2017.

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