RightScale recently published the results of its annual survey, State of the Cloud. The report reveals increasing cloud adoption from both enterprises and SMBs, and a preference for hybrid deployments. This post highlights the trends that matter to the supply side of the cloud market—the cloud providers.
Google and VMware Will Benefit from a Multicloud Strategy
Enterprises are hedging their bets by investing in a multicloud strategy. Indeed, 82 percent of respondents prefer a multicloud deployment to a single cloud platform.
Despite AWS and Microsoft Azure leading the market, a multicloud strategy increases the opportunity for Google Cloud Platform and VMware vCloud Air. Customers are looking for credible alternatives to AWS and Azure to run secondary workloads to enable redundancy and business continuity. Even if only 30 percent of AWS and Azure enterprise customers pick Google Cloud Platform or vCloud Air for running DR, it would result in a significant increase in sales for Google and VMware.
Cloud Providers Continue to Innovate on IaaS
The number of VMs running in the public cloud is expected to double within a year, making IaaS the fastest growing cloud-service model. In the coming 12 months, 27 percent of enterprises expect to run more than 1,000 VMs in the public cloud, compared to only 13 percent today.
Google and Microsoft are already prioritizing investments on IaaS over PaaS. Azure PaaS has not seen a major version upgrade in the last year. Google put App Engine on the back burner with no further enhancement to the platform. With increased customer spend on IaaS, we can expect to see support for additional types of VMs, along with simplified migration and enhanced monitoring tools.
Cloud Sales Reps Should Target the CIO
During the early days of cloud, engineering teams championed it by moving development and test environments to the public cloud. Cloud sales teams engaged with the VP of engineering to drive the adoption. That trend is changing fast as the CIO takes a greater interest in deploying cloud. The shift in decision-making minimizes shadow IT by centralizing the purchasing process.
Managing 62 percent of cloud purchase decisions, central IT is increasingly brokering cloud by building a customized self-service portal. This portal abstracts the proprietary consoles and user interfaces, which vary with each provider.
Chef and Puppet Lead the DevOps Revolution While Docker Storms its Way into the Enterprise
Initially, only startups and companies with webscale workloads leveraged DevOps. RightScale’s survey reveals that enterprises are increasingly embracing DevOps. Sixty-six percent of enterprises are currently adopting DevOps, up 4 percent over last year.
Chef and Puppet (see disclosure) are the leading tools with 28 percent and 24 percent, respectively. Interestingly, 35 percent of enterprises are considering Docker, the Linux containerization technology. This trend is great for Docker, Inc., which is heavily investing in making Docker enterprise-ready. Docker’s integration with existing monitoring and management tools speeds up enterprise adoption.
Disclosure: Puppet Labs is backed by True Ventures, a venture capital firm that is an investor in the parent company of Gigaom.
Microsoft Azure Has Reason to Celebrate
Azure’s enterprise usage has increased 8 percent over 2014. Microsoft’s bets on open source and partnerships are paying back. Though the gap between AWS and Azure is wide—AWS has 50 percent adoption and Azure has 19 percent—Microsoft has a reason to celebrate.
Azure PaaS has also seen an enterprise increase of 3 percent from last year. This trend is indeed encouraging for Scott Guthrie, who is on a mission to make Azure the best enterprise cloud. With the recent announcements such as Azure ML, G-Series VMs, and enhanced backup services, Azure may witness increased adoption.
The Private Cloud Market Plateaus
VMware leads the private cloud market with vCenter and vCloud as the favorite private cloud platforms. Microsoft’s private cloud adoption dropped by one percent.
According to the RightScale report, OpenStack has not made much progress in the enterprises since last year. It is not surprising to see OpenStack doing well in the small and medium business segment.
With public cloud providers upping the ante on the service availability and reliability, and enterprise customers spending more on the public cloud platforms, it is clear that public cloud is gaining on private cloud.