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2020 Vision: 3 Cloud Predictions for This Year and Beyond

No one knows what the future holds. Try as we might, we can never definitively say what awaits us—the world-changing events of 2020 have made that clear. But looking at recent research and trends, we can at least make an educated guess about what changes are coming in.. Continue

2020 Vision: 3 Cloud Predictions for This Year and Beyond

Category
Growth & Best Practices
IaaS

Published on
Written by
Tim FitzGerald

No one knows what the future holds. Try as we might, we can never definitively say what awaits us—the world-changing events of 2020 have made that clear. But looking at recent research and trends, we can at least make an educated guess about what changes are coming in cloud technology.

In these three predictions, we’ll take a look at what the future holds for cloud computing. It might surprise you to learn there’s never been a better time for partners to begin delivering infrastructure as a service (IaaS) and other cloud solutions to their customers.

Prediction 1: The cloud market will continue to rise

Every company has different cloud needs. Generally, older and larger organizations rely more on legacy, on-premises applications, while newer and smaller enterprises tend to be cloud-native. But in 2020, all businesses—large and small, old and new—have been prompted to make the leap to cloud technology because the benefits of migrating their workloads have become glaringly obvious.

Digital Ocean’s Vice President of Product, Apurva Joshi, summed it up for CRN: “Cloud services are an unsung hero in enabling this massive, sudden shift to a remote-first workforce. It's easy to forget, but 10 years ago, none of this would have even been possible.”

Cloud solutions have proved themselves this year, demonstrating that manageability and flexibility in IT infrastructure do more than provide a competitive edge—they are vital to a business’ survival.

According to IDC, public cloud spending is forecast to reach $500 billion by 2023, up from $229 billion in 2019. And IaaS will be the fastest growing category of cloud spending over that time with a five-year compound annual growth rate of 32%, based on the same research.

Prediction 2: Security and scalability will drive cloud adoption

Security is already a key consideration for organizations adopting cloud solutions.

In a recent survey, 41% of IT and operations decision-makers listed “improving security” as a primary reason for migrating to and modernizing workloads for Azure.

But as solution providers continue to enhance data protection using cloud products, that number will only climb.

Topping security in that same poll—at 42%—is scalability.

Many organizations today want the ability to rapidly scale up or down depending on their usage requirements. And, rightly so, they only want to pay for what they consume.

That will likely remain the case for the foreseeable future. So, partners that offer companies the chance to scale on demand with IaaS and other cloud products have a great opportunity to establish long-term customer relationships and increase profitability.

And if they can recommend customized cloud solutions based on their customers’ applications and workloads, the sky’s truly the limit.

Prediction 3: Partners will seize this new cloud opportunity

As more and more businesses invest in cloud, solution partners who offer cloud products will reap the rewards. That’s especially true considering the trend of customers buying tech as ongoing cloud subscriptions rather than one-time software or hardware purchases.

“By 2022,” says Sid Nag, research vice president at Gartner, “up to 60% of organizations will use an external service provider’s cloud managed service offering.”

That’s double the percentage from 2018.

In a recent report, The 2112 Group and Ingram Micro found only 49% of channel partners offer IaaS solutions. That number plummets to 26% when it comes to platform as a service (PaaS).

But according to that same research, 79% of solution providers expect to expand their cloud offerings in 2020 to capitalize on the cloud opportunity in front of them.

A once-in-a-lifetime opportunity

Hesitate to deliver cloud products to your customers, and you risk missing out on a once-in-a-lifetime opportunity—especially with IaaS.

With less than half of channel partners currently offering IaaS solutions, now’s your chance to establish your business as a preeminent provider. Gartner forecasts IaaS revenue to reach $76.6 billion by 2022, up from $30.5 billion in 2018. By getting your IaaS practice started sooner rather than later, you’ll be in a prime position to watch your revenue soar.

No one can see the future, so we have to act based on the information we have. Right now, it looks like there’s never been a better time to get started. Join the Azure Accelerate program and you'll receive exclusive services, offers and promotions that can help move your IaaS business forward.