Virtualization and Cloud executives share their predictions for 2016.  Read them in this 8th Annual VMblog.com series exclusive.

Contributed by Elad Rave, founder and CEO of Teridion

Rebuilding the Internet from the Cloud Up

In 2015, the cloud saw an upsurge of traction in the networking space. Enterprises can no longer overlook the benefits the cloud offers, especially as more complex, resource-intensive applications become routine, and modern infrastructure begins to take hold.

Enterprises continue to transfer larger and more mission-critical workloads over networks, as they increasingly rely bandwidth-draining applications, like video streaming and file sharing. In 2016, we will see an increase in networking in the cloud, an evolution in content delivery methods, and the emergence of a new type of application developer - with fewer architectural constraints - in addition to SDN being put on the backburner.

Networking Moves Deeper Into The Cloud

Following the course of compute, storage and virtualization, companies will begin to deploy networks across cloud operators in support of the increasingly sticky SaaS business model and new cloud services springing up daily. As the cloud continues to mature and become more robust, the demand for services that span multiple clouds will escalate-as will the solutions that make them easier to manage. As workloads get distributed across different providers, the challenge becomes how to build networks that are multi-cloud compatible.

Content Delivery Evolves

The increase in cloud adoption and trend of SaaS companies will drive the growth of "personal" and targeted content that can not be cached without being altered. Today's businesses need to deliver high-quality, rich content to users at unprecedented speeds without sacrificing reliability to keep customers satisfied and drive up revenue. 2016 will see new content delivery models that address bandwidth and latency requirements for traffic not limited to http and that is both upstream and downstream (i.e. uploads and downloads).

Legacy Architectures No Longer Constrain Application Developers

The Internet content delivery model evolves to support breakthrough applications that are global in reach but don't require global infrastructure build outs. Developers will be able to create applications and services as they want to instead of around the limitations of bandwidth and speed that the current Internet architecture holds. As these applications become more complex, network providers will be tasked with providing a stable, fast and reliable Internet to keep up, and we'll see the cloud utilized much more for that purpose. Those that aren't able to leverage the cloud to provide users the ability to run these apps won't last.

Spotting Unicorns Will Become Harder

While there will not be a mass extinction of "Unicorns," these highly valued companies will need to watch their backs - we've all read about unicorns, unicorpses and cockroaches. A die-off isn't imminent, but there will be a focus on cost containment and focus. SaaS companies will be held more to profitability. Companies that spend excessively on customer acquisition and have not demonstrated long-term viability will be taken to task.

Businesses today understand that issues with faulty connections or wavering quality not only keep their employees from doing their jobs, but also keep customers from coming back. However, there hasn't been a consistent way to mend these issues. Simply put, the Internet's routing and transport protocols are no longer sufficient. It is becoming clearer that a new approach to routing that brings networking into the cloud is essential to realize the full potential of the Internet. In 2016, we will see different cloud-based models emerge to oppose traditional networking vendors in an effort to accelerate applications, filling the huge gaps in the market today.

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About the Author 

Elad Rave, a proven industry veteran and successful serial entrepreneur with extensive experience in the technology sector, is CEO and co-founder of Teridion. He is recognized as an architectural expert and for multiplatform integration design and implementation.