Skip to main content

Hybrid IT Growth Creates Demand for Public Cloud

As cloud computing services attract increased adoption at many multinational companies across the globe, the procurement process is now being driven by senior executive leaders that seek to transform their enterprise into a digital business early-adopter.

According to the Technology Business Research (TBR) 1H16 cloud customer research program, the market for enterprise-grade cloud solutions is maturing and evolving with line-of-business (LOB) departments funding more cloud purchases than ever, therefore having more input into vendor and solution choice.

As this trend continues, cloud X-as-a-Service workload adoption -- public, private and hybrid cloud computing -- proliferates and professional services engagements morph into longer-term managed services deals from one-off systems integration transactions to help manage cloud sprawl.

Findings from the latest TBR research study show that cloud professional services have declined notably as a percentage of enterprise cloud budgets globally, as cloud workload adoption increases.

Cloud Services Market Development

"Over the past 12 months, the largest emerging opportunity in the cloud professional services market has centered on cloud brokerage and integration due to enterprises evolving their IT environments toward hybrid IT and multi-cloud, driving demand for automated tools and third-party services to optimize current assets," said Cassandra Mooshian, senior analyst at TBR.

TBR analysts believe that vendors will need to engage with LOB and IT department leaders to promote change management to help these departments work together as enterprises start to view public, private and hybrid cloud more strategically and collaborate more often on decisions and budget allocation.

Accordin to the TBR assessment, enterprise public cloud adoption continues to increase as hybrid IT growth pulls through public cloud as enterprises look to achieve more strategic objectives with their cloud purchases, creating broader opportunities for all cloud vendors.

Ongoing Cloud Services Market Research

TBR surveyed 4,047 enterprises across the U.S., the U.K., Germany, France, China and India to understand adoption rates, buying behaviors and vendor landscape of the overall cloud market. Of the total survey population, TBR asked 1,416 cloud purchasers questions regarding their preferences, planned purchases and desired steps for vendors to make.

From the data, TBR produced four reports: Private Cloud Customer Research, Hybrid Cloud Customer Research, Public Cloud Customer Research and Cloud Professional Services Customer Research. TBR conducts this research semi-annually. In September, TBR will publish the topical report "Open Source Adoption" with findings from the same population.

Popular posts from this blog

Global Digital Business and IT Consulting Outlook

Across the globe, CEOs and their leadership teams continue to seek information and guidance about planned Digital Transformation initiatives and the most effective enterprise organization change management practices. Worldwide IT and Business Services revenue will grow from $1.13 trillion in 2022 to $1.2 trillion in 2023 -- that's a 5.7 percent year-over-year growth, according to the latest market study by International Data Corporation (IDC). The mid-term to long-term outlook for the market has also increased -- the five-year CAGR is forecast at 5.2 percent, compared to the previous 4.9 percent. Digital Sevices & Consulting Market Development IDC has raised the growth projection despite a weak economic outlook, because of vendor performances across 2022, growth indicators from adjacent markets, increased government funding, and inflation impacts. The actual 2022 market growth was 6.7 percent (in constant currency), which was 87 basis points higher than forecast last year, alth
Read more

Why Instant Issuance Payment Cards Evolved

The global financial services sector continues to grow as more progressive organizations seek to gain a meaningful competitive advantage from their digital transformation initiatives. Across the globe, many regions are seeing a significant rise in 'instant issuance' activity from a physical and digital perspective, from both traditional and emerging innovative banking institutions. Digital Payments Market Development Customers increasingly demand instant access to banking services, with physical instant issuance enabling them to leave their branch equipped with a ready-to-go payment card. According to the latest worldwide market study by ABI Research, the market for instantly issued physical payment cards will increase from 243.2 million shipments in 2022 to a forecast of 471.1 million in 2027. "Critically, instant issuance of payment cards is no longer limited to the physical," said Sam Gazeley, industry analyst at ABI Research . Indeed, the growing digitization of p
Read more

Open Banking Usage to Grow by 470 Percent

The Open Banking business model has been advantageous for Third-Party Providers (TPPs), helping them to extend their offerings into other areas of financial services with new capabilities. Open Banking is also advantageous for traditional banking institutions, despite the perceived loss of custodianship over their data, by providing greater accessibility to more bank services. Furthermore, Open Banking can help serve Mobile Internet providers that are able to leverage it to create tailored services according to customers’ preferences and/or economic limitations. Open Banking Market Development Since traditional banking services are made more convenient by TPPs via greater data access, customers can proactively manage their finances and shape the development of new financial offerings. This is particularly noticeable in the realm of Digital Payments, where retail merchants and customers transact through eCommerce, which has the greatest number of use cases for Open Banking. These includ
Read more