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Technical Talent Shortage Drives Hosted Cloud Growth

Numerous industry analysts have reported that organizations continue to report that a shortage of skilled and experienced technical staff in their market inhibits their ability to adopt cloud computing service options. Those that can find the technical talent often discover that the salary requirements of the most capable cloud architects are beyond their traditional IT pay scales.

Some organizations have solved the near-term technical staffing challenge by reaching out to vendors that can offer a comprehensive hybrid cloud managed services solution, and can provide staff training and skills certification as a solution to their long-term knowledge transfer needs.

Meanwhile, cloud computing consultants and other skilled specialists fulfill the requirement to augment an organization's technical staff -- just-in-time, as needed on new digital transformation projects.

Cloud Services Ongoing Market Development

The market for cloud computing solutions will continue on a strong growth trajectory through 2020, driven by IT and Line-of-Business (LoB) leader acknowledgment of the proven business benefits, according to the latest market study by Technology Business Research (TBR).

TBR expects the cloud computing professional services market will reach $65 billion in 2020, due to the emerging demand for cloud brokerage, as a result of continued cloud workload deployment that prompts integration and orchestration challenges.

Cloud brokerage and integration tools are also breaking down the barriers to public cloud and hosted private cloud adoption, as enterprise IT departments can now have access to these SaaS and PaaS solutions to help automate cloud adoption.

In addition, for certain workloads, such as those with confidential employee information, private cloud services remain an important enterprise option. Given these trends, TBR expects the hosted private cloud market to grow to $43 billion in 2020.

Demand for Cloud Management Automation

"The cloud professional services market will grow through 2020, but the worst case scenario is that vendor portfolio build-outs with automated tools and solutions will cut into the managed services opportunity, largely impacting professional services vendors," said Cassandra Mooshian, senior analyst at TBR.

Hosted private cloud's growth trajectory will face similar obstacles to that of cloud professional services. TBR believes that although the hosted private cloud market is significantly smaller than public cloud, it will continue to grow over the next four years as IT departments with security concerns remain on single-tenant private cloud for certain workloads.

However, some potential customers with the most security concerns may keep applications on-premises, avoiding cloud deployments altogether. Hosted private cloud vendors may also face a growing number of customers that see public cloud services as the final destination for their enterprise IT applications.

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