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2020 Cloud Market Predictions: The Future Looks Bright

2020 Cloud Market Predictions: The Future Looks Bright

By Mark Kirstein, Vice President, Products at BitTitan

For many people, the New Year is a time for reflection on the year gone by and an opportunity for renewed commitment to progress and goals. The same is true for businesses. As we embark on a new year and a new decade, many businesses are trying to anticipate where the market is headed so they can make strategic plans that will result in success.

Many things could influence market conditions around the world this year, from the 2020 Olympics in Tokyo, to the U.S. – China trade war, to the U.S. presidential election. While the U.S. surplus in exported services is shrinking overall, this trend is not expected to have a negative impact on the cloud services sector. Read on for our top six predictions for the cloud market in 2020.

  1. SaaS growth will continue

Currently, the cloud is a $200 billion market, yet overall IT spending is in the trillions of dollars. This means that spending for on-premises (on-prem) software and services remains strong. Is this a bad sign for the cloud market? Absolutely not. We anticipate the global cloud services market for 2020 to continue to grow in excess of 20 percent. Many organizations are moving to the cloud in stages and there are several factors that will keep migration in forward motion. These include increased confidence in and reliance on cloud services, the phase-out of on-prem software like Microsoft Exchange 2010, and continued aging of hardware and infrastructure. While we expect most companies to make conservative spending decisions in 2020, decisions related to the cloud are fundamental to operations, particularly for global companies, and not as likely to be put on the back burner. We will see continued innovation of SaaS services and offerings, coupled with organizations migrating closer to an “all-in” adoption of the cloud. There is a lot of opportunity ahead for SaaS.

  1. Cloud-to-cloud migrations will continue to rise

While companies are continuing to migrate from on-prem to the cloud, we expect to see a continued uptick in cloud-to-cloud migrations as more companies devote attention to optimizing their cloud footprint. Currently, a majority of BitTitan’s business is cloud-to-cloud migrations. The historical concerns of cloud security, reliability, quality, and SaaS-feature parity have largely been addressed, but companies are continually searching for the provider that can deliver the most value for their IT dollars. Businesses want the ability to move their data while avoiding the perils of vendor lock-in. Furthermore, maintaining a multi-cloud environment allows companies to better manage business risks.

  1. The use of containers will increase

Containerization, which packages up software code and all its dependencies so the application runs quickly and reliably and can be moved from one computing environment to another, has achieved mainstream adoption and will continue to be a strong market segment in 2020. Containers offer a great deal of flexibility and reduce the risks for companies moving to the cloud. They reduce infrastructure costs, accelerate and simplify the development process, result in higher quality and reliability, and reduce complexity for deployments. Containers also aid in cloud-to-cloud migrations. Businesses that use containers can easily run them on Google Cloud today and switch to other platforms like Azure or Amazon Web Services (AWS) tomorrow without complex reconfiguration and testing. This allows businesses the freedom to shop for the right cloud environment. This is one of the reasons the container market is growing at a rate of more than 40 percent, and we expect that growth will continue.

  1. Microsoft and Google will seize market share from AWS

Of the top three public cloud providers today, AWS was first to market and has enjoyed a considerable lead in market share. AWS has been particularly appealing for companies that want to provide “born in the cloud” services. But in 2020, we expect the two other top public cloud vendors – Microsoft Azure and Google Cloud – to make significant inroads and take market share away from AWS. Part of this is simple math: With such a big slice of the market, it will be hard for AWS to maintain its rate of growth. And the competition is getting stiffer. Microsoft is doing a great job of appealing to enterprises who are grappling with legacy infrastructure. Google also is making significant investments in its cloud computing unit. Its technology is already very good and easy to use, which will make Google a force to be reckoned with. Another trend we are likely to see is that smaller public cloud vendors will drop out or choose to focus their business on the private cloud infrastructure market, where they are more likely to excel.

  1. The market will expand and consolidate

As the cloud market grows, the ecosystem will expand with the types of solutions and capabilities to manage and streamline, increasing the value of investments in the cloud. On average, companies using cloud technologies are using five different cloud platforms. We will continue to see new and improved offerings to help companies assess, monitor, and manage their cloud footprints to reduce costs and improve security. As new, compelling cloud solutions enter the market, we are likely to see more consolidation, with Amazon, Microsoft and Google continuing to acquire new solutions to enhance their own offerings.

  1. 5G will usher in the next level of cloud adoption globally

Recently, Ericsson Mobility predicted that there will be 1 billion 5G subscriptions by 2023 and they’ll account for almost 20 percent of the entire global mobile data traffic.[1] Besides the massive increase in speed provided by 5G technology, it also comes with a remarkable decrease in latency. While 3G networks had a latency of nearly 100 milliseconds, that of 4G is about 30 milliseconds, and the latency for 5G will be as low as 1 millisecond, which most people will perceive to be nearly instant. With this type of performance, we believe that cloud-based services will become more reliable and efficient. Not only that, but 5G may also accelerate cloud adoption in countries that are lacking wired infrastructure today.

Without a crystal ball, there is no way to know for sure what the market landscape will look like in the coming months. But by analyzing recent trends and considering their implications for the future, companies can take a forward-looking approach that will position them to stay ahead of the curve and be ready to seize opportunity as it arises. This year is looking bright for the cloud.

Bio

Mark Kirstein is the vice president of products at BitTitan, leading product development and product management teams for the company’s SaaS solutions. Prior to BitTitan, Mark served as the senior director of product management for the mobile enterprise software division of Motorola Solutions, continuing in that capacity following its acquisition by Zebra Technologies in 2014. Mark has over two decades of experience overseeing product strategy, development, and go-to-market initiatives.

When not on the road coaching his daughter’s softball team, Mark enjoys spending time outdoors and rooting for the Boston Red Sox. He holds a bachelor’s degree in computer science from California Polytechnic State University.

[1]How 5G will Accelerate Cloud Business Investment,” Compare the Cloud.net. Retrieved December 17, 2019.

Seamless Tenant-to-Tenant Migrations Through Coexistence

By Kelsey Epps, Senior Technical Partner Strategist, BitTitan

There’s no question that businesses have adopted the cloud, big-time. In fact, Reuters reports that Microsoft has been shifting its reliance from the Windows operating system toward selling cloud-based services. Revenues have topped $1 trillion as the software giant predicts even more cloud growth.

Now that businesses have moved so many of their key workloads out of on-premises servers and shifted them into the cloud, the great wave of on-prem-to-cloud migrations is past its peak. With the cloud so well-entrenched, IT departments and service providers are being asked more and more to migrate workloads from one cloud instance to another. There are a variety of business reasons for making such a move, whether it’s employee preferences for a given software stack, realigning contracts, or utilizing APIs that are a better business fit.

It would seem that once a set of workloads is in the cloud, moving them to another cloud instance should be a straightforward process. However, ensuring business continuity through a cloud-to-cloud migration is every bit as tricky as an on-prem-to-cloud move.

In fact, now that workers are enjoying the work-from-anywhere access that the cloud provides, they may even be less tolerant or forgiving of any interruption in their user experience. When workers expect uninterrupted data access and seamless collaboration through the transition, the “Big Bang” approach of migrating everything in a single sequence, user-by-user or workload-by-workload until the job is done is rarely an option. Organizations are increasingly turning to a batched approach with their migrations, which targets specific groups or departments to migrate at the most opportune times.

This approach offers many benefits, but also its own challenges, because when a batched approach is taken, end users will exist on both the Source and Destination. This is where tenant-to-tenant coexistence comes into play to help facilitate the move.

Tenant-to-tenant migrations defined

A tenant-to-tenant (T2T) migration is a form of cloud-to-cloud migration where the Source and Destination applications are the same; the move is from one instance of the applications to another instance of the same applications. In the case of Office 365, the scope of applications and supporting data typically includes mailboxes, personal archives or personal storage tables (PST files), OneDrive or SharePoint files, and of course, the data files associated with the various Office 365 applications.

Migrating a business (or a subset of one) is a challenge because of the heavy reliance on email communications and calendars. Users have no way of knowing who among their coworkers have migrated to the Destination and who have yet to do so.

What is the impact of this? Emails bounce back to the sender or pile up in a mailbox that’s no longer accessible. Meeting invites are missed, or users are erroneously double-booked because the free/busy information associated with their calendars is no longer available to all users, as some are still working from the Source and others from the Destination. These obstacles work against the primary goal that the IT team brings to any migration: to make the whole process seamless and essentially invisible to the users.

Continuous collaboration through coexistence

Coexistence is a migration technique that gets around the synchronization problems and keeps users happily working and collaborating with each other even though they’re being migrated at different times. When a migration is the result of a merger, acquisition or divestiture, an entire organization, department or division is moving from SourceCompany.com to DestinationCompany.com. It’s the ideal scenario for taking advantage of coexistence. All one has to do is follow these easy steps:

  • First, enable organizational sharing of the Office 365 tenants. For all users to be migrated, create mail-enabled contacts on the Destination that resolve to each individual’s mailbox on the Source.
  • As you migrate each user, remove the mail-enabled contact from the Destination. Create an Office 365-licensed user account to establish the new mailbox, with a forward that points back to the Source mailbox. This allows the user to keep working in the Source mailbox. Migrate the mailbox items from the Source to the Destination.
  • Finally, after you migrate each user, remove the forward on the Destination mailbox. On the Source, you can remove the mailbox and replace it with a mail-enabled contact that points to the Destination mailbox. Or, keep the mailbox in place and forward to the new Destination.

Plan ahead for swift execution

Coexistence is an effective technique, especially if you combine it with selective migration of older files or emails that are less likely to be needed and move them either before or after the active migration. This enables you to make the whole process quick and seamless. Put coexistence in your toolkit and use it the next time you’re faced with a tenant-to-tenant migration between domains. Of course, careful preplanning is the key — as it is with any migration.

Bio
Kelsey Epps is a senior technical partner strategist with
BitTitan. A 20-year IT industry veteran, Kelsey works with MSPs and IT specialists on the technical preplanning aspects of the most complex migrations projects.