Gartner: Corporations Will Abandon “No-Cloud” Policy, by 2020

Gartner Corporations Will Abandon No-Cloud Policy by 2020

Imagining a world without cloud is like trying to remember a time without cellphones. Imagine that document not auto-saving, and you’re brought back to those days of lost work, slow, laborious collaboration capabilities, the state of your computer’s ram before your favorite cloud storage solution. No one wants to imagine life before cloud computing, and Gartner INC. is backing that notion by predicting that by 2020, a corporate No-cloud policy will be as rare as a, “no-internet’ policy is today- in addition, stating that hybrid cloud will be the most common use of cloud capabilities.

Many enterprises still defend a no cloud stance, yet, faced with today’s cloud enthusiasm both by providers and consumers, this policy will fall by the  wayside.

“Aside from the fact that many organizations with a no-cloud policy actually have some under-the-radar or unavoidable cloud usage, we believe that this position will become increasingly untenable,” said Jeffrey Mann, research vice president at Gartner. “Cloud will increasingly be the default option for software deployment. The same is true for custom software, which increasingly is designed for some variation of public or private cloud.”

This is not to say that every corporation will adopt pure cloud-based functionality, rather, hybrid cloud will make it possible for businesses to straddle both worlds with hybrid cloud solutions, yet, Gartner’s other prediction suggests that 30% of the 100 largest vendors’ new software investments will have shifted from cloud first, to cloud only capabilities.

“More leading-edge IT capabilities will be available only in the cloud, forcing reluctant organizations closer to cloud adoption. While some applications and data will remain locked in older technologies, more new solutions will be cloud-based, thus further increasing demand for integration infrastructure,” said Yefim V. Natis, vice president and Gartner Fellow. “Rigid organizations cannot produce agile IT solutions. As delivery shifts more to the cloud, most IT organizations will have to reorganize to reflect the business realities of cloud computing: continuous innovation and change, pervasive integration, competing with cloud providers for some initiatives, and crucial prevalence of influence over control in IT’s relationship with lines of business. While historically the greatest competitor to external service providers has been internal IT, with spend shifts, structural reorganizations and the business realities mentioned above, cloud providers will be in the position to gain the upper hand.”

Inline with this prediction, is that by 2020 more compute power will be provided by IaaS and PaaS cloud providers: more than what’s powered by today’s enterprise data centers. Gartner reports that by 2020, the revenue for compute IaaS and PaaS will exceed 55 billion, an estimation that would exceed revenue for traditional servers.

“With the growth of both bimodal computing and cloud provider offerings, software-defined enterprise data centers have become less centrally important than building a strong multiprovider management capability,” explained Thomas J. Bittman, vice president and distinguished analyst at Gartner. “Unless very small, most enterprises will continue to have an on-premises (or hosted) data center capability. But with most compute power moving to IaaS providers, enterprises and vendors need to focus on managing and leveraging the hybrid combination of on-premises, off-premises, cloud and noncloud architectures, with a focus on managing cloud-delivered capacity efficiently and effectively.”

For more information, visit Gartner’s report, “Market Insight: Cloud Computing’s Drive to Digital Business Creates Opportunities for Providers.”