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Top five trends for cloud computing in 2017
DEC 04, 2016 03:07 AM
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Cloud computing is on the cusp of a modified revolution as companies need faster computing resources to process, store and distribute a large amount of data in an efficient way. Cloud adoption helps big data businesses to deal with terabytes of data through a shared infrastructure.

As technology continues to evolve, the cloud computing market is expected to accelerate faster. According to Gartner over US$1 trillion in Information Technology (IT) spending will be directly or indirectly affected by the shift to cloud in the next five years. The move from on-premise to cloud infrastructure will be aided by a lot of industry developments in 2017. Here are the top five trends that will shape up the cloud computing space in 2017:

Cloud security to be the top priority

Security remains a serious concern with the growing adoption of cloud-based infrastructure globally. The vast amount of data stored on remote servers poses an enormous risk and necessitates implementation of wide security policies across organizations.  In the business world, a data breach is linked to the loss of millions of customers, their identities, and reputation. Data breach investigations could result in millions of fines and could destroy businesses all at one go.

A market research firm estimates the size of cloud security market at US$8.7 billion in 2019. With the increase in cloud-based infrastructure, cloud security would become an integral part of big data management strategy in 2017.

Cloud-based IT infrastructure to traverse further

The hardware infrastructure for cloud computing will witness considerable investments with enterprises moving more workloads off-premise. In the next two years, about one-third of all organizations will be entirely based on the cloud, according to IDG’s Enterprise Cloud Computing Survey, 2016. Servers and Ethernet will constitute the majority of spending for cloud-based infrastructure. On the contrary, spending on traditional IT infrastructure is expected to acknowledge a decline in a few organizations across geographies. 

IDC expects that cloud-based IT infrastructure spending will register a compound annual growth rate (CAGR) of 13.6% to reach US$60.8 billion by 2020. “Demand for cloud services will continue to drive the underlying shift in IT infrastructure spending from on-premise to off-premise deployments, said Natalya Yezhkova, Research Director, Storage Systems at IDC.”

Public and Hybrid cloud computing set to grow rapidly

Public cloud is gaining traction as enterprises evince keen interesting in hosting their software applications on it. The worldwide public cloud growth will come mainly from infrastructure as a service (Iaas) and software as a service (SaaS), both will account for about 17% and 74% of the total workloads, respectively by 2020.  Also, the overall spending on public cloud will be worth US$195 billion by 2020, according to IDC.

Since more and more organizations move their applications to the public cloud to save cost, big data vendors will evolve themselves to work in these IT environments. However, productivity, vendor lock-in, security and privacy concerns would force organizations to embrace a hybrid cloud strategy. This will enable them to shuffle between private and public clouds depending on the workload and business scenarios. The hybrid cloud market is expected to acknowledge a CAGR of 29% through 2019. 

Internet of Things (IoT) and cloud computing to go hand in hand

The convergence of IoT and cloud is opening up new horizons in the technological landscape. The connected things will generate a large amount of data through the cloud. While vendors are able to achieve higher economies of scale, customer costs are reduced. Companies are now able to deploy applications worldwide and save cost on data centers. Moreover, IoT will see an upsurge in the management of smart mobile devices in IoT topology in the times ahead.

The Platform as a Service (PaaS) category which enables the combination of these two technologies is expected to see a huge growth in a few years. The database, analytics, and IoT workloads will account for 22% of the total business workloads by 2020.  As the industry grows, we are likely to see more strategic collaborations between companies to drive IoT-optimized infrastructure services.

Machine learning to proliferate in cloud

Machine learning databases, applications, and algorithms are becoming pervasive in the cloud platforms. As cloud computing expands, organizations are developing different tools to create intelligent applications and incorporate machine learning in their software services.  Infrastructure to support machine learning workloads such as natural language processing and neural networks will be of paramount importance to IT firms in the coming time.

All these developments will spread machine learning into a wide variety of uses and drive the next generation of applications. However, it is just the beginning. Eric Schmidt, Executive Chairman of Alphabet, said “bringing machine learning to the cloud will be a game changer”. The path is filled with a lot of challenges and it will be interesting to see how these developments pan out in 2017.

The outlook

Cloud computing has become a viable and mainstream solution to store and process a large amount of data. It holds a tremendous future with growing number of applications running on the cloud, offering unlimited, and elastic data storage capabilities. Cloud computing is helping enterprises gain efficiencies as they move their operations off-premise to better serve their customers. This transition will positively impact a large number of organizations globally over the next five years and will provide a fillip to the global economies.









About the author

Ashish Sukhadeve writes about technology covering various aspects of analytics and data science developments. He brings over ten years of experience as an industry analyst, writer, and editor for some of the world’s most widely-read high-tech and business publications. Learn more about his work on his blog. He can be reached at

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