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xMatters 2016 Predictions: 2016 Budget Predictions for Enterprise Cloud and Virtualization Technology

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

Contributed by Troy McAlpin, CEO, xMatters, inc.

xMatters CEO Troy McAlpin Makes 2016 Budget Predictions for Enterprise Cloud and Virtualization Technology

Well, we're getting ready to see 2015 in our rear view mirrors (it will look like 5102, of course) and 2016 through our windshields. At the end of 2014 I made a few predictions including:

  • IT Will Leverage the Cloud to Take On Strategic Business Leadership: I rate this true, and I think it will continue in 2016.
  • This Will Be the Year of BYOA (Bring Your Own Applications): I think this was true also as leading IT departments embraced Shadow IT. I expect this to evolve in 2016.
  • Connected Systems in the Cloud Create a Need for Wider, Deeper Monitoring: I see this trend growing for the foreseeable future.
  • Old School IT and Modern IT Will Have to Co-Exist: I'm not sure Gartner's bi-modal IT is going to gain broad acceptance. Let's say the jury is still in deliberation.
So what about predictions for 2016? 

Businesses Will Invest More in Cloud Security

Just a few years ago, many of our customers were skeptical about moving to the cloud out of security concerns. Those concerns are easing and dissipating as cloud platforms (when done right) prove safe and effective.

But guess what? The bad guys are getting smarter too. Data breaches and malware attacks increase every year. Victims in 2015 included BlueCross BlueShield, Harvard University and LastPass.

In 2016 expect IT departments to spend on data encryption, malware detection, firewalls and other ways to improve security.  Not just systems but educating employees will be more important than before.

The Battle Over Data Encryption Will Reach a Boiling Point

Companies have been ditching email in favor of faster and better encrypted applications. Unfortunately, as became apparent on November 13, terrorists are using encrypted social communication apps. In fact, some security experts think terrorist organizations are using PlayStation 4, which is particularly difficult to decrypt.

At some point in 2016, we will have a public debate about the nexus between cloud security, public safety, personal privacy and information volume.

DevOps Will Become the Standard for Large Enterprise IT

Efficiency is everything in business, we all get that.  Having developers throw new software over the wall to operations doesn't really make sense. It's like marketing throwing collateral over the wall to sales. It doesn't work.

Organizations that have adopted Agile development and a DevOps mentality have reaped the benefits, and they'll only do better as they get better at it.

New Relic states that companies that deploy DevOps practices code up to 30 times more frequently than their competition, which lowers the risk of change and provides quicker access to new functionality. According to the Puppet Labs 2013 State of DevOps survey, the vast majority of deployments are successful.

IT Departments Will Spend More Migrating to the Cloud

The days of IT spending relatively small amounts to piecemeal cloud implementation are coming to an end. In 2016, companies will move to cloud solutions in a major way, with budgets from inside and outside IT, and expenditures will move to above-board operational expenditures.

Companies will create real value, too, through solutions, storage, service providers and outsourcing.

Enterprises Will Continue to Adopt Hybrid Clouds

Gartner says that nearly half of large enterprises will deploy a hybrid cloud environment before the end of 2017. Hybrid clouds combine the power and scale of public clouds with the security and technical control of private clouds. With better API compatibility, companies can use their private clouds like staging environments before deploying to a public cloud.

If Gartner is right, and I suspect they are, now is the time to explore hybrid clouds.

You - Yes You - Will Experience a Major Incident

According to Dimensional Research, nearly 90 percent of companies with 5,000-10,000 employees experience a major incident at least monthly. A quarter of companies with more than 10,000 employees experience a major incident at least weekly.

I know Halloween is over, but things are going to get scary at some point next year. So be prepared.


About the Author

Troy McAlpin, CEO, xMatters, inc.

Troy McAlpin brings more than 20 years of experience to his leadership role at xMatters, with expertise in process automation, strategic initiatives and corporate strategy. His domain experience includes IT strategy and vertical market expertise including technology, banking, consumer and retail industries.  Prior to founding xMatters, he managed marketing, sales, development, M&A and financial aspects at two successful start-up companies and also worked at AT&T Solutions and Andersen.

Published Wednesday, November 25, 2015 9:01 AM by David Marshall
Cloud IT & Enterprise Technology 2016 - Boston Commons High Tech - (Author's Link) - December 18, 2015 1:36 PM
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