Cloud, security to dominate IT spending in the next year

IT is being called upon to adapt to the larger macro-economic and political landscape by being agile and flexible to changing market demands

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Cloud, security to dominate IT spending in the next year Consolidation and partnerships (creating an ecosystem), will be key focus for enterprises, says Kanary.
By  Ehab Kanary Published  May 20, 2017

With changes and uncertainty in the global economic and political landscape, 2017 could be the year of massive change as businesses loosen their purse strings and invest, or organisations reduce spending while waiting to gauge the impact of changes.

Even with these two different scenarios, we see a few trends for the following months in business enterprise network infrastructure.

Cloud migration
Service providers, enterprises and data centre owners began a migration of applications to the cloud and we see this increasing over the next year.

Spending on IT infrastructure for deployment in cloud environments will increase by 18.2% in 2017, according to the latest figures from IDC.   Of this amount, the majority (61.2%) will be done by public cloud datacentres, while off-premises private cloud environments will contribute 14.6% of spending.

We believe there also will be a build out of private clouds for those industries that have regulatory requirements or their legacy networks do not allow them to go to a full public cloud at this time.

Capital decisions
The lease versus buy and capital expenditure versus operating expenditure debate is ongoing with businesses. Throughout the next year, we see service providers and enterprises looking at options to building their own networks as they explore colocation (or multi-tenant) options for data centres and leasing office buildings.

IDC predicts that 60 percent of ICT spend will be a mix of colocation, hosted cloud and public cloud datacentres by 2018; this has been a consistent and ongoing trend for the past couple of years but we see the gap closing in 2017 as enterprises shift from ‘build you own’ to multi-tenant data centres.

Security is part of every business and IT discussion these days and it will only become more intense in 2017. We see an increase in the demand for video for surveillance, both for government and private businesses. This issue includes physical security—securing the building, people and assets—as well as network and data security.

Network convergence
The trends of capital investments and security are also impacting another area that we see as big trend in 2017—network convergence. Take buildings, for example. What was traditionally just hardwired for data and voice is now being retrofitted or designed new with wireless in mind. Building owners and operators are looking at the co-existence of wireless and wireline for the coming year but will consider the new radio spectrum, both licensed and unlicensed, that is coming available as well as new technologies that enable the universal ceiling.

As this convergence happens, we see a greater focus in 2017 on consolidation and partnerships (creating an ecosystem) to address these needs.

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