Cloud Computing Predictions 2016
By: Date: Categories: Cloud


Our integration partners, CloudCheckr recently interviewed cloud market leaders from across the IT industry to create their 2016 cloud computing forecast. The report includes insights on the future of cloud computing from cloud leaders including Racemi, Rackspace, and Digital Globe.

Our CEO, Craig Deveson, contributed to the Report which focuses on coming trends in enterprise adoption, security and market consolidation of the public cloud.

Cloud Computing Predictions 2016

Below are what we believe are the three most important trends from the Report, Cloud Computing Predictions 2016:

1. Public Cloud Market Share Consolidation

The cloud market will continue to consolidate around the infrastructure of the two hyper-scale vendors, AWS and Azure. The first moves are Rackspace reselling AWS and HP reselling Azure.

More cloud computing market share going to the dominant players simplifies vendor selection for service providers and we expect most service providers to integrate one or both of the main player’s infrastructure as part of their overall service offering in 2016.

Forecast consolidation in the cloud computing market could spell trouble for many data centres and junior players. We, therefore, expect some further consolidation in the service provider industry. Cloud-focused service providers based on AWS and Azure will continue to grow.

2. Commoditization And Acceptance Of The Public Cloud

The future of cloud computing is now. Installing and managing infrastructure has been commoditized so that owning infrastructure is no longer the better option.

“Private cloud”, “data center”, and “hardware recap” will become dirty words for most organizations, if they aren’t already. This is reflected even at the C-suite level, with CEOs and CFOs beginning to reject any major cash outlays for IT infrastructure in favour of cloud adoption according to Rackspace’s Brad Schulteis.

3. Enterprise Uptake Of The Public Cloud

2016, in terms of IT industry trends, is the year of Enterprise IaaS adoption. As CloudMGR CEO, Craig Deveson points out, the discussion is no longer “if” it is now “what, when, and how?”.

Enterprises testing the waters in 2014 and 2015 have found that they like what IaaS has to offer, and the market should see hundreds of thousands of enterprise applications migrated to IaaS next year as a result.

This means more sophisticated, cloud-first, implementations of enterprise applications that fully embrace the ephemeral and dynamic nature of the cloud.

While historically companies have focused on moving CRM, ERP, web applications, and custom-developed applications to IaaS, organizations now seem to be migrating just about every type of application to the cloud. As Enterprise adoption picks up steam in 2016, we expect to see just about everything under the sun re-­hosted to IaaS.


For further information on any of the cloud computing market predictions we’ve outlined above, you can download the complete Cloud Computing Predictions 2016 Report by following the link below.

Got your own predictions for Cloud in 2016? Leave Craig a comment or reach him on Twitter @CraigDeveson, he loves a good discussion!


You can also view the Report, as originally published at CloudCheckr, here.

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