Cloud and the Consumption Model: Does it Make Sense?
I feel like I’m having this conversation on an almost daily basis. Organizations want to move to cloud, modernize their data centers, and find news ways to create efficiency and infrastructure savings. Cloud computing has been a great way to make this happen. Moving to a subscription-type model isn’t only limited to software or cloud solutions. Organizations can now leverage hybrid cloud options and offload entire data center operations into an OPEX model.
Growth around cloud will only continue to increase. Specifically, IT spending is steadily shifting from traditional IT offerings to cloud services (cloud shift), according to Gartner. The aggregate amount of cloud shift in 2016 rose to $111 billion, and is projected to increase to $216 billion in 2020.
Furthermore, Gartner analysts said that by 2020, cloud, hosting and traditional infrastructure services will come in more or less at par in terms of spending.
“As the demand for agility and flexibility grows, organizations will shift toward more industrialized, less-tailored options,” said DD Mishra, research director at Gartner. “Organizations that adopt hybrid infrastructure will optimize costs and increase efficiency. However, it increases the complexity of selecting the right toolset to deliver end-to-end services in a multisourced environment.”
Gartner predicts that by 2020, 90 percent of organizations will adopt hybrid infrastructure management capabilities.
There is no question that IT and