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Digital Realty Predictions for 2017: Cloud Security Takes the Lead, IoE Goes Offshore

VMblog Predictions 2017

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

Contributed by Chris Sharp, CTO of Digital Realty

Cloud Security Takes the Lead, IoE Goes Offshore

2017 will see greatly accelerated growth of enterprise hybrid and multi-cloud IT strategies based on an increase in availability, quality, performance and security of cloud interconnection services and capabilities. The rapid growth of IoT, the continued search for security advancements, the focus on sustainability and businesses' omnipresent need to reduce costs and increase productivity will drive continued growth of interconnection services, and create strong pull for public cloud and SaaS offerings.

Interconnection and colocation vendor consolidation will likely continue, driven by global enterprises' need to simplify operations, and owing to increased opportunity and competition in the space. By the end of 2017, Fortune 500 companies without progressive interconnection, hybrid and multi-cloud strategies will compose a minority, and will find themselves at ever-increasing disadvantages when compared to their competition.

The market in 2017 will be driven by a number of factors, including the following:     

Cloud Security Bests Private Data Centers; Direct Connections Beat the Public Internet

Years of hand-wringing over cloud security, accompanied by near-daily breaches of on-premises data centers have led to the realization that the cloud is actually just as good, if not far better. Continued proof that hackers' ability to exploit vulnerabilities of the public Internet makes the superiority of direct connections obvious. Both realizations will drive increased adoption of these services in the coming year.

Sustainability Concerns Promote Colocation/Cloud Adoption (with Green Data Center Leaders)

Increasingly focused on the "greening" of their IT operations and its effect on both capex and corporate reputation, distributed enterprises and mid-market leaders will continue seeking to outsource data center facilities and operations rather than building and operating their own. Highly aware of the increased visibility of IT generally, however, they will be sure to pick colocation and multicloud providers who lead the field in sustainability themselves.

Internet of Everything Drives Compute and Storage Needs Up and Away

When IT manages everything from servers to light switches, and from routers to refrigerators, the need for compute and storage goes up. Enter colocation and the cloud, easily scaled up as the number of "things" under IT's purview continues its rapid expansion. Savvy leaders will outsource the necessary infrastructure and the applications, leaning on their interconnection providers' abilities to draw from and manage best-in-class options for both.   

Managed Services Managing Things Lean on the Cloud

Managed services offerings designed to offload management of the Internet of Everything will scale quickly and globally, and will by necessity be based in the cloud. A need for local direct connections to cloud resources based on the need for low latency in these systems will drive increased engagement with multi-cloud-enabled interconnection providers.

(Ever) Increasing Mobility will Drive Further SaaS (and Shadow Cloud) Deployments

The low cost and ease of installation for most cloud based mobile SaaS applications makes them increasingly attractive to a highly mobile workforce that values flexibility and low physical device profile over the ability to conduct in-depth deliverable development. Continuing acceleration of mobile devices in the workplace will continue to drive cloud application/storage/SaaS adoption, even when IT is uninvolved (Shadow Cloud).

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About the Author

Chris Sharp, Chief Technology Officer, Digital Realty

Chris Sharp has over 20 years of experience in the technology industry, with an extensive background in developing technology strategies in global markets. He has a deep knowledge of the data center sector and is well positioned to expand technical innovation at Digital Realty. Most recently, he was responsible for cloud innovation at Equinix, where he led the development of innovative cloud services solutions and developed new capabilities enabling next-generation, high-performance exchange and interconnection solutions, facilitating broad commercial adoption of cloud computing on a global basis. Previously, Mr. Sharp held leadership positions at top network and colocation providers, including Qwest Communications, MCI/Verizon Business and Reliance Globalcom.

Chris Sharp 

Published Monday, December 12, 2016 9:01 AM by David Marshall
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