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CloudBolt 2016 Predictions: A Maturing Cloud Market Will Separate Winners from Losers

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

Contributed by Jon Mittelhauser, CEO, CloudBolt

2016 Predictions: A Maturing Cloud Market Will Separate Winners from Losers

In 2015, the enterprise cloud market shifted from the early adoption phase to mainstream usage.  Expectations have been raised and 2016 is the year in which IT departments split between those offering self-service IT and those who are plagued by Shadow IT.  Simply put - any enterprise IT department that doesn't offer access to easy self-service cloud infrastructure, runs the risk of becoming irrelevant as teams will simply bypass formal IT infrastructure and go directly to the public cloud. As the market matures, we will see a number of changes over 2016...

At least one more public cloud provider will shut down in 2016.  In 2015 we saw HPE decide to drop its Helion public cloud, choosing to partner with Microsoft Azure moving forward. This type of consolidation will continue in 2016. We'll also see smaller players shut down or join forces with larger players as they struggle to compete with industry leaders (AWS, Microsoft, Google). To win the race, cloud providers will start to differentiate themselves based on technical offerings rather than simply trying to compete on price.

Multi-cloud becomes standard. As basic cloud capabilities become more commoditized, enterprise companies will start to engage with more than one cloud provider.  They will do this to bid them against each other or to take advantage of technology differentiation.

DevOps and Cloud Management tools become more commonplace. In order to support multiple clouds and dynamic deployments, enterprise companies will fully embrace devops orchestration tools (e.g. Puppet, Chef, Ansible) and cloud management platforms which allow them to dynamically provision across all of their infrastructure (independent of whether that infrastructure is public or private).

Google (or Alphabet to be precise) is going to get serious about tackling the Enterprise market. Up to now Alphabet  has been sitting mostly on the sidelines but 2016 is the year that they throw significant cloud services resources and start to make inroads into the space. This will cause companies like VMWare and HPE to take notice. Hiring Diane Green was only the first step in their plan.

All of these predictions are natural results of the increased maturity in the Enterprise market. The largest cloud companies will either push out or buy out the smaller players and consumers will look to maximize their flexibility and avoid vendor lock-in.  By the end of 2016, we will have a clear picture of who the players are and what their strategy is.


About the Author

A 20-year Silicon Valley veteran, Jon Mittelhauser has a proven track record of building highly regarded technology organizations from the ground up and helping to architect pioneering technologies.

Mittelhauser is considered one of the founding fathers of the World Wide Web. He was co-author of the first widely-used Web browser, NCSA Mosaic, and was a founding engineer of Netscape Communications Corporation. As Netscape Navigator's first product manager, Mittelhauser led the effort to make the browser a platform by integrating and creating technologies such as browser plug-ins, Java and JavaScript that today are still core to the power of the Web within the enterprise.

Most recently, Mittelhauser was Vice President of Engineering at Nebula, Inc., leading the engineering effort for the company's OpenStack-based enterprise private cloud appliance. Prior to that, Mittelhauser ran the software organization at OnLive, Inc. and had overall management responsibility for the successful launch of their service in 2010.

Published Friday, December 18, 2015 8:03 AM by David Marshall
Alternate Realities for 2016 | CloudBolt Software - (Author's Link) - February 2, 2016 12:31 AM
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