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Hybrid Cloud Deployments to Gain Momentum in 2017

During 2015, CIOs and business technology managers joined the Line of Business leaders by moving more enterprise IT operations to cloud services. In 2016, it’s estimated that disaster recovery, IT helpdesk services, web content management and communication applications are all running in the cloud.

That said, public cloud spending will accelerate rapidly, growing from $75 billion in 2015 to $522 billion by 2026 at a compound annual growth rate (CAGR) of 19 percent. The public cloud service segment CAGR rates are: SaaS (19 percent), PaaS (33 percent), and IaaS (18 percent).

By 2026, it’s now estimated that cloud computing will account for nearly 50 percent of all spending for enterprise IT hardware, software and outsourcing services, according to the findings of a recent market study that was sponsored by North Bridge, a growth equity and venture capital firm.

Based on the findings from the ‘2016 Future of Cloud Computing’ survey, while ~50 percent of all companies either have a cloud-first or cloud-only strategy, some form of a cloud computing deployment agenda is now being reported among the vast majority of survey respondents.


Other key survey findings include:
  • 42 percent of companies surveyed derive 50 percent or more of their business through cloud-based applications. And, 79.9 percent of the companies surveyed were getting some revenue from cloud services.
  • A Hybrid Cloud solution is the predominant strategy at 47 percent, followed by Public Cloud (30 percent) and Private Cloud (23 percent). It’s been a constant from last year, and will likely remain the same as Hybrid IT models blend scalability and predictable cost controls.
  • Meanwhile, 70 percent of respondents report that they’re already using one of several varieties of Software-as-a-Service (SaaS) offerings.
  • Infrastructure-as-a-Service (IaaS) was adopted by 58 percent of respondents for compute, and 53 percent for storage. Both are expected to increase by 5 percent over the next two years.
  • Platform-as-a-service (PaaS) is being deployed by 45 percent of respondents, and it’s expected to show the highest increase over the next two years, growing by 19 percent.
  • Twenty-eight percent of companies surveyed report they store 50 percent or more of their data in a public cloud, versus 59 percent that store half or more of their data in a private cloud.
  • These storage numbers are expected to converge over the next two years, with public cloud data storage expected to increase 18 percent, and private cloud data storage expected to decrease 16 percent.
  • Fifty-one percent of all survey respondents have begun a DevOps methodology deployment in small teams -- that’s up by 37.8 percent versus last year. And, 30 percent indicated they’ve begun DevOps in large teams or company-wide -- that’s up 2X versus last year.

"Cloud environments will remain predominantly hybrid in the coming years, enhancing the importance of a clearly defined cloud governance and orchestration strategy to optimize for security, self-service and agility, while minimizing costs," said Holly Maloney McConnell, principal at North Bridge.

This year’s survey received 1,351 responses -- a record-breaking number -- representing a 60/40 balance of user/vendor perspectives spanning senior executives to practitioners across all industry sectors such as Technology, F.I.R.E., Government, Healthcare, Manufacturing, Media, Professional Services and Transportation.

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