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What to expect in the cloud market in 2020?

At the end of November 2019, analyst firm Forrester published a study in which it presented five forecasts for cloud computing for 2020.

1. IBM and Oracle retreat into the familiar territory; Alibaba threatens Google

The main cloud service providers are Amazon Web Services (AWS), Google, Microsoft, and Alibaba. While IBM and Oracle have tried to introduce services in this area, IBM’s acquisition of Red Hat and Oracle’s partnership with Microsoft in 2019 suggest they are returning to the familiar space of application development platforms. According to analysts, IBM and Oracle simply didn’t have the funds to compete with other cloud giants. But Alibaba’s cloud platform revenue will exceed $ 4.5 billion so that the Chinese company will bypass Google and take third place among the largest cloud services.


IBM and Oracle retreat into the familiar territory; Alibaba threatens Google

2. SaaS vendors are leaving proprietary platforms and moving to industry leaders

SaaS vendors have chosen large partners because companies need to keep costs as low as possible to compete in the SaaS space. Salesforce increasingly relies on AWS; Microsoft 365 (formerly Office 365) runs on Azure infrastructure. Through these partnerships, SaaS vendors can fully focus on their core business of improving application performance. In addition, according to the report, companies have begun to find regional partners: Workday is partnering with AWS in Canada, and Salesforce is partnering with Alibaba in China.

3. The use of high-performance computing in the public cloud increases to 40%

Historically, high-performance computing in the public cloud has been unavailable due to low resource consumption and insufficient infrastructure. However, in 2020, large investments from cloud providers will help circumvent these restrictions, the report said.

AWS, Azure and Google have already added HPC to their services. Their use in the cloud is expected to increase by 40% in 2020. This increase is driven by the emergence of new types of virtual machines, including C5 / P2 / P3 / G3 from AWS, H- / NC- / ND- / NV-series from Azure and V100 / P100 / K80 from Google.

4. Cloud Open Source- development will be replenished with mesh and serverless services

2020 will see fierce competition in the cloud ecosystem, with hundreds of open-source projects and vendors competing for developer attention. In 2019, Kubernetes won the battle to orchestrate software containers. Unlike containers, in the realm of mesh and serverless the leader has not yet decided, but there are favorites. Mesh networks promise even more powerful interservice networks, improved visibility, and security, while serverless computing opens up new programming models that completely abstract from infrastructure concerns. Many open source companies compete in the field of service less networking: Consul Connect, Gloo, Istio, Kuma, Linkerd 2, Maesh, Mesher, and SOFAMesh. Istio has the greatest advantage of all serviceless networks, according to the report. Major commercial offerings including AWS App Mesh, Google Anthos, and VMware NSX SM are already available.

5. Cloud Management Software Vendors Tackle Cloud Security

In June 2019, it became known about the leak of the credentials of the American bank Capital One , which uses AWS services. This event raised a very important issue in cloud server management – data and application security. Industry leaders will start pouring funds into their own security solutions, while multi cloud management service providers will have to build or acquire security tools that go beyond identity and access management like they used to.

Going to the “clouds” brings suffering to banks

In October 2019, the analytical company Sapio Research published the results of a study commissioned by the cloud service provider Computers and Structures Inc. (CSI). The survey concerned the problems of introducing cloud technologies in banks.

86% of financial companies said that not being able to migrate legacy applications to the cloud negatively affects their business. At the same time, 85% of respondents consider digital transformation a key priority.

The inability to migrate to the cloud makes it too time-consuming for up to one in three financial institutions to back up and update applications. 33% of those surveyed say that this problem makes it difficult to make effective IT decisions.

Financial companies struggle to master the cloud, lose money, and follow competitors

The study also showed that some companies are in no hurry to switch to the cloud infrastructure, as they fear problems with information security.

Cloud security is the biggest barrier to moving applications to the cloud, according to 36% of financial IT leaders. 31% of survey participants named another problem – ambiguous instructions from financial regulators regarding security management. 55% said they were using only “adequate security measures” and that they could not do more in this direction.

Almost 40% of surveyed financial institutions state the absence of direct links with issuing banks and acquirers, payment systems and various service providers, which prevents businesses from developing customer service capabilities, as well as not using public and unreliable communications.

Due to the complexity of security regulations and laws, many companies in the financial sector mistakenly shy away from cloud computing, according to CSI CEO Simon Payne.

However, cloud systems have been proven to offer a stricter way to manage security and compliance. Cloud environments use cybersecurity and machine learning algorithms to ensure compliance with data security standards, he said.

Migration to the cloud is hard for financial companies and they suffer from it

With many companies also citing the difficulties of porting legacy apps, it’s clear that the financial sector has a long way to go to reap the benefits of the digital age. There is a fundamental misconception that legacy applications cannot be migrated to the cloud — they are not true. We can now update the old code; thus, business-critical applications that were not previously supported by the clouds can be migrated to them, and then, if desired, to public clouds, ”Payne said.

The study notes that launching applications in the cloud infrastructure allow a company to earn money faster, take advantage of new and more powerful technologies, and launch suitable and compatible workflows without being distracted from business tasks. CSI estimates that up to 80% of mission-critical core workloads still run on-premises, depriving them of the benefits of the cloud.

The digital age promises vast opportunities, delivering significant productivity gains for companies. Cloud adoption is an important part of the digital transformation process. Despite the subjective perception, the main risk here lies not with security and compliance, but with delayed development of innovative opportunities and companies that fall behind when they only run applications on closed systems, concluded Simon Payne.


Linux Foundation: Edge Computing Will Become More Important than Cloud Computing by 2025

Speaking at the Open Networking Summit in Belgium in September 2019, Linux Foundation Network Projects Leader Arpit Joshipura said edge computing will become more important than cloud computing by 2025.

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