2Heightened Security, Compliance Issues Remain Top Concerns
3Data Protection Techniques Drive National Clouds
With an increased desire to track the movement and location of data, organizations will increasingly deploy techniques such as geo-tagging and geo-fencing. This will lead to more nationally built clouds that operate under local laws, rather than large, multinational clouds. A huge untapped market still remains in multinational clouds for less sensitive data, however.
4M&A Activity Continues to Heat Up
A large number of early-stage businesses are looking to displace traditional software vendors with new cloud offerings. 2013 brought the acquisition of businesses such as Softlayer (by IBM), Tier3 (Centurylink), Cloupia (Cisco), Nicira/Dynamic Ops (VMware) and a number of smaller businesses as major vendors assemble cloud stacks and key functions. The level of competition and pace will continue to rise.
5OpenStack Not Yet Ready to Be Welcomed by the Enterprise
6Rigorous Demands Will Drive Competition Away From OpenStack
Although it may eventually feature in the enterprise, OpenStack’s current offering is very basic (mainly provisioning) and traditionally not user-friendly. In addition, there are currently many competing flavors of OpenStack from more than 14 vendors. Its time may well come, but the rigorous demands of the enterprise dictate that 2014 will not be its year.
7Division Will Drive Specialized Clouds
As enterprise organizations become increasingly aware of the cloud deployments that will be most beneficial for their business (public/private/hybrid), greater differentiation will appear in the marketplace. In particular, large public clouds will continue to drive development of new applications and SaaS, while the rise of specialized clouds will support the migration of traditional enterprise applications to the cloud and running mission-critical workloads securely and efficiently.
8Cloud Market Growing at Unprecedented Rate
This isn’t necessarily news, but it’s still a huge factor: According to IDC, the cloud market will surge by 25 percent in 2014, with an ever-increasing share of enterprise IT moving to the cloud within the next five years. As enterprise organizations realize the significant impact that embracing the cloud can bring in terms of productivity, agility and competitiveness, the market will rapidly grow and expand. Cloud is on a trajectory to be the new trillion-dollar market in IT.
9Mission-Critical Apps Being Transferred to Clouds
Over two-thirds of enterprise organizations are looking to move business-critical applications such as ERP to the cloud by the end of 2014, demonstrating an evolution in the thinking about enterprise applications in the cloud. Cloud specialists and startups enhancing cloud security, usability, performance and compliance will expand their services to help businesses extend their legacy mission-critical applications to the cloud.
10Performance Enhancements Are Driving Efficiency
Significant enhancements to cloud performance, largely due to improvements in cloud management platforms and the use of flash memory and flash storage, will allow businesses to access large data sets more efficiently. In the era of big data, marketers, IT departments and executives will all benefit from these performance improvements. As an example, SAP HANA databases already allow order of magnitude improvements in performance and make them broadly available.
11Cloud Brokerages Will Be in High Demand
Fully 75 percent of cloud implementations in 2014 are set to be hybrid, as businesses look to find a mix of solutions that best fit their needs. However, the enterprise is not yet ready to deal with multiple suppliers. Functionalities such as compute, storage and network will be provided by a single interface as efforts are made to adapt to the needs of enterprise through the integration of infrastructure, but the diverse nature of clouds and underlying technologies still make seamless integration difficult.