Corporate 'no-cloud' policies will be rare by 2020; Gartner

Gartner predicts hybrid will be the most common usage of the cloud, but will still depend on public cloud

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Corporate 'no-cloud' policies will be rare by 2020; Gartner Gartner's Jeffrey Mann: Cloud will increasingly be the default option for software deployment and for custom software, which increasingly is designed for some variation of public or private cloud."
By  Aasha Bodhani Published  June 27, 2016

Research house Gartner predicts that by 2020 a corporate "no-cloud" policies will be as rare as a "no-Internet" policy.

Gartner reveals cloud-first is replaced the defensive no-cloud stance that has dominated many large providers, especially as technology innovation is cloud-centric with the stated intent of retrofitting the technology to on-premises.

Jeffrey Mann, research vice president at Gartner said: "Aside from the fact that many organisations with a no-cloud policy actually have some under-the-radar or unavoidable cloud usage, we believe that this position will become increasingly untenable. Cloud will increasingly be the default option for software deployment. The same is true for custom software, which increasingly is designed for some variation of public or private cloud."

Despite this, Gartner states that this does not mean that everything will be cloud-based, and concern will remain valid in some cases. However, the extreme of having nothing cloud-based will largely disappear. Hybrid will be the most common usage of the cloud, but this will require public cloud to be part of the overall strategy. Technology providers will increasingly be able to assume that their customers will be able to consume cloud capabilities.

Gartner further predicted that by 2019 more than 30% of the 100 largest vendors' new software investments will have shifted from cloud-first to cloud-only. The now well-established stance of cloud-first in software design and planning is gradually being augmented or replaced by cloud-only. This also applies to private and hybrid cloud scenarios.

Yefim V. Natis, vice president and Gartner Fellow added: "More leading-edge IT capabilities will be available only in the cloud, forcing reluctant organisations closer to cloud adoption. While some applications and data will remain locked in older technologies, more new solutions will be cloud-based, thus further increasing demand for integration infrastructure."

"Rigid organisations cannot produce agile IT solutions. As delivery shifts more to the cloud, most IT organisations will have to reorganise to reflect the business realities of cloud computing: continuous innovation and change, pervasive integration, competing with cloud providers for some initiatives, and crucial prevalence of influence over control in IT's relationship with lines of business. While historically the greatest competitor to external service providers has been internal IT, with spend shifts, structural reorganisations and the business realities mentioned above, cloud providers will be in the position to gain the upper hand."

By 2020, more compute power will have been sold by Infrastructure as a Service as the market is projected to grow more than 25% in revenue by 2019. Furthermore, Platform as a Service will exceed $55bn in revenue by 2020.

Thomas J. Bittman, vice president and distinguished analyst at Gartner explained: "Unless very small, most enterprises will continue to have an on-premises (or hosted) data centre capability. But with most compute power moving to IaaS providers, enterprises and vendors need to focus on managing and leveraging the hybrid combination of on-premises, off-premises, cloud and non-cloud architectures, with a focus on managing cloud-delivered capacity efficiently and effectively."

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