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Understanding the enterprise cloud environment

Cloud computing remains the hottest topic among enterprise information technology influencers. However, much of the conversation centers on how large-scale adoption might unfold rather than if it will happen. Indeed, businesses across a myriad of industries are harnessing the power of the cloud, rolling out lightweight, self-contained applications that streamline internal processes, facilitate scalability and ultimately bolster the bottom line. In November of last year, the International Data Group asked more than 900 IT leaders from around the world to characterize their involvement with the technology. Approximately 70 percent attested to hosting one or more applications in the cloud, while over half of those without such assets said they planned to adopt cloud-based networking features within the next 12 months. This data, along with other corroborating insights, signify that the cloud is rapidly becoming the standard among enterprises of all kinds.

While cloud adoption increases uniformly throughout multiple industries, deployment methods vary as the market grows and solutions diversify. Prospective adopters and long-time users have latched on to a number of key cloud computing trends, taking the technology to new places.

Container revolution

Traditional cloud configurations utilize virtual server structures, which mirror those found in on-premises solutions. While effective, this file storage method leaves something to be desired when it comes efficiency and mobility. Consequently, many organizations are opting for container-based cloud setups, CIO reported. This allows users to store entire applications within easy-to-migrate, self-contained repositories. According to TechTarget, containers offer two key advantages: They can operate without host server hardware copies and do not require the support of a fully installed operating system. Businesses can launch more applications on a single server and move them more easily, as a result.

Amazon Web Services has for years been the go-to solution for organizations looking to launch containers. However, other vendors are entering the fray. Earlier this month, Microsoft acquired the respected container-centric cloud startup Deis for an undisclosed amount, according to a company blog post. This move, combined with the recent public release of the Azure Container Service, puts the technology giant in position to challenge Amazon for container superiority, TechCrunch reported. This of course opens up new opportunities for enterprises looking to invest in these niche solutions.

Emergence of the multicloud approach

Organizations have long taken the one-stop-shop approach to working with IT vendors, hiring different firms to manage internal systems at a one-to-one ratio. However, this strategy is quickly falling out of fashion among cloud adopters, paving the way for more complex yet cost-effective arrangements in which multiple vendors support a single cloud-based system. This methodology, called multicloud, allows users to more effectively control costs and design tailored networking strategies that promote optimal efficiency and productivity, according to Data Center Knowledge. Some even mix and match private and public cloud services.

Just how popular is this approach? In January, the Software-as-a-Service-based cloud firm RightScale surveyed more than 1,000 IT professionals from organizations across the globe. Approximately 85 percent of these technical specialists indicated that their firms had adopted the multicloud strategy.

Money on the mind

Last year, the market for enterprise cloud technology grew 17.2 percent to over $208 billion, according to research from Gartner. This signifies large-scale investment from businesses of all kinds. However, while most are happy to continue budgeting for cloud-related IT innovations, it seems the average expenditure is on the verge of decline. Why? Chief information officers are getting smarter about how they select and deploy their services, CIO reported. To do this, companies are instituting stringent usage tracking protocols and making little tweaks, such as switching systems off on the weekend, an act that can save hundreds of thousands of dollars per year in operating costs. For others, spending reductions are simply a symptom of more crystallized best practices.

Major cloud vendors like AWS, Microsoft and Google have prepared for this shift by adjusting their pricing structures, ZDNet reported. All three have reduced fees for container-centered offerings, precipitating a market-wide drop of 14 percent for such services over the last 12 months. Costs for virtual machines fell 5 percent during the same span. Again, this development works out in favor of prospective adopters looking for ways to embrace cloud technology without incurring major expenses.

Organizations are expected to spend more than $122 billion on cloud infrastructure this year, according to research from the International Data Corporation. The trends mentioned above will certainly guide that immense cashflow, as businesses from every corner of the globe trade in on-premises solutions for cloud-based alternatives. Is your organization prepared to make this swap? Connect with TelcoSolutions today. We offer cutting-edge cloud services that can save time and promote operational flexibility and continuity. Contact us today to learn more or get a free quote.

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September 24, 2018
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