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Reliam 2018 Predictions: Public Cloud Acceleration and a More Acute Focus on Partners

VMblog Predictions 2018

Industry executives and experts share their predictions for 2018.  Read them in this 10th annual VMblog.com series exclusive.

Contributed by Simon Anderson, CEO, Reliam

Public Cloud Acceleration and a More Acute Focus on Partners

Public cloud adoption is poised to shift into another gear in the coming year. Many more businesses that have thus far stayed on the sidelines will get on board, lured both by continual improvements to cloud infrastructure services and capabilities, and by competitiveness within their own markets. Amid this increase in adoption, look for businesses to take advantage of fresh opportunities to increase cloud performance, availability, and scalability - all while realizing even clearer and more dramatic cost savings versus their traditional infrastructure.

More specifically, I anticipate these three changes to the cloud ecosystem in the next year:

1. AWS revenue will grow even faster as a percentage in 2018 than it did in 2017 (reaching back above 50% again).

In the first quarter of 2017, AWS achieved a remarkable 43% year-over-year growth. And yet, AWS's revenue growth has actually been in steady decline since reaching a stunning 81.5% year-over-year growth in the second quarter of 2015. Naturally, as the marketplace matures it becomes more difficult to put up sky-high numbers. However, with the ever-increasing ease of entry in moving business applications to the cloud, the value on the table for organizations choosing to modernize their infrastructure in this way, and the drive to remain competitive or to get a leg up on rivals that haven't yet transitioned to the cloud, don't be surprised to see a renewed acceleration in businesses flocking to AWS.

2. In 2018, AWS, Microsoft Azure and Google Cloud Platform will invest more heavily in winning the hearts and minds of channel partners.

The adoption of the public cloud will continue to broaden to less cloud-savvy mid-market companies and enterprises that have been laggards in embracing such strategies. Channel partners like MSPs and consultants are trusted partners of this broad swath of adopters - a fact that the major cloud providers well understand. These important channel partners will be seeing pretty substantial efforts by the cloud platforms to win them over as proponents and capable service providers of their products. Really look for all three - AWS, Azure, and GCP - to carve out a much more robust and expansive channel ecosystem throughout 2018.

3. AWS Well-Architected reviews by MSPs and consultants will drive significant enhancement and optimization of security, performance, and compliance for applications running on AWS.

During re:Invent 2017, AWS launched its Well-Architected Partner Program. This enables authorized AWS partners to utilize a proven set of best practices and strategies - defined as the AWS Well-Architected framework - in order to review and optimize customers' critical workloads. In this way, consultants and MSPs have the tools on hand to improve architecture implementations and address key needs, resulting in customer applications that feature superior security, performance and more. The benefits delivered by this nascent program will certainly increase as it matures into 2018 and beyond.

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About the Author 

Simon Anderson 

Simon Anderson is CEO of Reliam, a cloud managed services provider headquartered in Los Angeles. A cloud and Internet infrastructure executive since 2003, he was most recently Entrepreneur-in-Residence with Great Hill Partners, the Boston-based growth capital firm with over $4 billion under management. As CEO of DreamHost from 2011 to 2015, Anderson grew the cloud hosting company to more than 400,000 customers worldwide. He also co-founded Inktank in 2012, which was sold to Red Hat in 2014 for $175 million. Anderson serves on the board of directors of Instaclustr and Aptira. He earned degrees in science and law from the Australian National University. 

Published Friday, December 15, 2017 7:33 AM by David Marshall
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