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NuoDB 2017 Predictions: Appetite for Cloud and Containers to Accelerate in 2017

VMblog Predictions 2017

Virtualization and Cloud executives share their predictions for 2017.  Read them in this 9th annual VMblog.com series exclusive.

Contributed by Barry Morris, Co-Founder, NuoDB

Appetite for Cloud and Containers to Accelerate in 2017

1.   SAAS will be the default application model in every class of company

While the concept of Software-as-a-Service is not new, it has taken 20 years for the ASP/SAAS dream to become the preferred deployment and usage model for a wide spectrum of applications ranging from consumer to enterprise.  In 2017, we believe SAAS will become officially mainstream, as noted in Gartner's Hype Cycle for Cloud Computing.  With secure and reliable cloud infrastructure services, elastic database systems, and application architectures designed for multi-tenancy readily available to support this momentum, SAAS has become the undisputed answer to most application challenges.

2.   Cloudification turning-point for on-prem Application ISVs

As noted above, while 2017 will be a turning point for SAAS in general, it will be particularly the case for Application Vendors.  Cloudification of traditional applications will reach a critical turning point in 2017. 

In its Q3 2016 report, the Software Equity Group indicated that public software as a service (SaaS) companies grew revenue at 29 percent compared to just 7.8 percent for public software companies that primarily offered perpetual, on-premises software.  In addition, Gross Profit Margin for SAAS companies was also higher (66.2% vs 64.3%). If an application vendor is not actively disrupting their market with a compelling SAAS offering they should expect their business to be disrupted by a competitive SAAS offering.

The cloud on-ramp for ISVs is complex, involving discontinuous changes in business models, skillsets, operational processes, and product architecture.  At the core of the challenge is the requirement to manage data on behalf of many customers, the need for database management with elastic capacity, multi-tenancy, security, load-balancing, high availability, data redundancy, simple back-ups, and a profitability-driver to minimize licensing and administration costs. In 2017 we will see application vendors investing heavily in this transition to ensure success. 

3.   Containers & Docker certified as Enterprise Platforms

Docker and Containers have already become the de facto deployment style for internet companies.  Expect to see broad enterprise adoption in 2017.

There are around 500,000 Dockerized applications, a growth of 3,000% over two years. Over 4 billion containers have been pulled to date.  The numbers are astonishing, and there is no reason to believe that the trend will slow down.  Thus far, most of the activity has been among ultra-early adopters, not mainstream IT shops. But we are seeing this change rapidly, and 2017 will be the pivotal year.

In 2016, Wall Street banks certified Docker as a deployment platform, along with container ecosystem components. The technology is moving from the domain of the advanced technology groups to the datacenter. We can expect that what happens on Wall St will soon happen elsewhere in the enterprise.

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About the Author

As executive chairman, Barry Morris chairs the Board of Directors and drives the external matters of NuoDB, including industry thought leadership, strategic partnerships and business relationships as well as product and technology strategy. He also serves as an advisor to the CEO and senior leadership on all aspects of the business.

Barry is an accomplished software executive with more than 25 years of industry experience in the U.S. and Europe - startups to publicly held companies. As the founding CEO of NuoDB, Barry built the company from ground up into a successful database company and a leader in scale-out SQL technology.

Barry Morris 

Published Thursday, January 12, 2017 7:06 AM by David Marshall
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