Cloud Computing- Dips or Accelerates

The year 2015 was not remarkable for Cloud Computing as corporate spending on the cloud fall and the technology witnessed a sluggish growth rate. But, 2016 is a year when the table turns for cloud computing and its usage steadily increases. We can mention two reasons for the change from decreasing to increasing pattern: Firstly, a new willingness to adapt the technology is seen among the biggies, and secondly, the companies that care for users’ safety the most, start relying on the public cloud for data storage and access.

Though global IT spending is expected to remain $3.49 trillion in 2016, the experts predict that global spending on the public cloud will record 16 percent growth to $204.2 billion. These days, as companies go beyond application testing and implement cloud strategies in a broader way, the cloud technology gains ground. Cloud-based IT infrastructure, applications, and platforms are rapidly adapted by small and mid-sized companies also as cloud providers continuously develop new tools and services that cater their business requirements.

Impact on traditional vendors

According to J.P. Morgan Chase report, the accelerating move to the cloud shows a signal of ‘changing of the guard’ in enterprise IT. It can become a serious threat to traditional and on-premise IT infrastructure vendors in the future.

Big companies that switch to cloud

Netflix Inc. is one of the first big organizations that run all of its IT in the cloud after completing a seven-year transition. An electric giant GE also plans to reduce the number of its data centers from 34 to four through moving all the sensitive data to AWS (Amazon Web Services), and other cloud vendors. The beverage giant Coca-Cola has switched more than one-fifth of its computing environment on the servers of Amazon, Google, and other cloud vendors. The company wants to send almost half of its data to the cloud servers in the next two to three years.

Why companies switch to cloud

The cloud enables companies to reduce operating costs. It also allows them to convert capital budgets into operating budgets. It offers flexibility to choose the resource as per company requirements. Companies can readily add or subtract computing power and facilitates a mobile workforce to access necessary data on the move. Security and user-friendly interface are other benefits of the cloud. Finally, the cloud increases companies’ productivity and scalability while facilitating complex business operations.

Hybrid cloud model

Many companies adept a hybrid cloud model that integrates cloud services and private data centers. It gives benefits of both cloud computing and data analysis. These days, tech giants like Oracle, IBM, and Microsoft spend a lot of bucks to take cloud computing to the next level through innovative approach and the latest technology.

Though accelerating shift to the cloud is still in a nascent stage, we can certainly hope that they will change the present way of doing business.