2017 took all of us to surprise in terms of revenue growth. The top ranking is not captured by the major Cloud giants – Amazon, Microsoft or Google. Instead, China’s Alibaba topped the revenue chart increasing cloud revenue twice as last year.
Alibaba’s cloud sales soared 126.5% to $675 million last year from $298 million in 2015, according to market research firm Gartner. Alibaba (BABA, -0.59%) is a dominant force in China, but it also is ramping up its Aliyun cloud effort in North America and other markets as well.
Following Alibaba in the rankings was Google, which doubled cloud revenue worldwide year-over-year to $500 million from $250 million. Microsoft Azure had 61.1% growth and Amazon Web Services revenue grew 45.9%.
AWS pioneered this category and is growing off a much bigger base than the other cloud contenders. According to Gartner’s, the growth of AWS is expected to slow because of growing competition from Azure, Google and Alibaba.
2. Cloud Adoption
Gartner predicts that more than 50 per cent of outsourcing deals will be influenced by cloud adoption strategies. Meanwhile, Forrester predicts that global public cloud market will rise to $236 billion in 2020. There are various benefits of cloud adoption like improved efficiency, competitive edge, reduced costs, flexibility and scalability etc. Hybrid cloud solution is gaining ground among businesses.
3. Artificial Intelligence
The demand of artificial intelligence is depicted from the gap the world is seeing in terms of demand and supply of developers. Most companies are facing lack of right expertise. The growing demand for AI is due to various reasons. AI can be applied anywhere where you can collect data, measure, and make predictions. Identify those opportunities and tie them to a specific customer or business needs and start ensuring the quality of the data is good and apply basic methods to start with as a proof of concept.
4. Serverless computing
AWS was the first to bring a serverless computing platform and since then the other major IaaS public cloud providers have been following the same. Many AWS services are “serverless” including Lambda, S3, as well as its NoSQL DynamoDB database, and SQL-supported Aurora database platform. Each of these products requires no pre-planning of resource usage or ongoing management of infrastructure.
Containers are gaining popularity day by day. While Containers are there for a while, Docker recently brought them to spotlight with enterprise use. More and more enterprises are seeing the benefits of adopting hybrid and multi-cloud models, but the challenge was to ensure that software runs smoothly. Containers came as a rescue here. Amazon Web Services (AWS), Azure and Google offer container services.
6. Union of Private cloud and hyperconverged infrastructure
Not all the action is in the public cloud. Tectonic shifts are occurring even within the realm of on-premises infrastructure. This year, we saw an aggressive shift from traditional private cloud to leaner and cheaper solutions that include and integrate PaaS capabilities, cloud management, and container support.
7. Hybrid cloud – The Public cloud on-ramp
As enterprises build out next-generation infrastructure for their private clouds, they want a way to enable workloads running on that infrastructure to eventually run in the public cloud, thus creating a hybrid cloud. Hybrid cloud computing has been a staple of Microsoft’s cloud strategy since it launched Azure. AWS has mostly ignored the idea of private and hybrid cloud computing, but it released a series of products and services to on-ramp data on to its cloud at Re: Invent 2016. Snowball Edge device that can do local computing and then send data to AWS is an example. Snowmobile is another example -- it’s a 45' container that can literally truck 10 Petabytes of data at a time into AWS.
These are 7 takeaways from this year in the Cloud Space. Stayed tuned for more updates!
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