CloudComputingTrendReport,2017Mobile,IoTandAIdriveincreasedcloudadoptionDavidVincent,SeniorAnalyst,CloudMarketDevelopment,MD&IBillChamberlin,DistinguishedMarketIntelligenceProfessional,MD&IHorizonWatchFebruary15,2017AboutThisTrendReportPurpose:TheslidesprovideanoverviewontheCloudComputingtrendContent:SummaryinformationabouttheCloudComputingmarketplace,includingtrendsdrivers,spendingtrends,industrybusinesscases,andadoptionchallenges.Alsoincludedarelinkstoadditionalresources.HowToUseThisReport:Thisreportisbestread/studiedandusedasalearningdocument.YoumaywanttoviewtheslidesinslideshowmodesoyoucaneasilyfollowthelinksAvailableonSlideshare:Thispresentation(andotherTrendReportsfor2017)willbeavailablepublicallyonSlideshareat/horizonwatchingPleaseNote:ThisreportisbasedoninternalIBManalysisandisnotmeanttobeastatementofdirectionbyIBMnorisIBMcommittingtoanyparticulartechnologyorsolution.2CloudComputing–TrendOverview

DriversCloudsoffercostsavings&anattractivepay-as-you-gomodelCloudscanenablethespeedofdeliveryofnewservices&capabilities,enablingrapidinnovationHybridcloudmodelsalloworganizationstomovepartoftheirdataintothepubliccloud,whilekeepingotherIT-resourceson-siteorinaprivatecloudMobile,IoTandAIusecasesdrivecloudadoption3IBMdeveloperWorks:5ThingstoKnowaboutShiftsinKeyBusinessDriversforCloudComputingUsage

ImplicationsLargeenterprisesareincreasinglydesigningforhybridcloudsandarelookingforhybriddevelopmentplatformsThedemandforanytime,on-the-goaccessibilitywillbeamajorforceinthecontinuedadoptionofcloudcomputingExpectcontinueddevelopmentofdeliverymodels(Iaas,PaaS,andSaas)asenterprisesseektobuildanddeploycloudapplicationsStartups,companieswithcomplexsupplychainoperationsandcompaniesgoingthroughreorganizationsorbusinessprocesstransformationsaregoodcandidatesforclouds4“Thedisruptivenatureofcloudcomputingiscontinuingtochallengetechnologymanagement,includingI&Oteams.Thecloudmarketwillaccelerateevenfasterin2017,asenterprisesareleveragingcloudcomputingtopowertheircorebusinesssystemsandcustomer-facingapplications”Forrester

ChallengesSecurityrisksofpubliccloudscontinuetobeaconcernManyenterprisesdon’twanttheirdatastoredbyathirdpartyorwhereotheruserspotentiallyhaveaccesstotheirdataManyenterprisesstilldon’thavecloudcomputingskillsinhouse5“Cloud'simpactismassive,andIDCpredictsthatthegreatercloudspending(cloudservicesandITproducts)willexceed$500billionby2020,drivenby:GrowthinSaaS,PaaS&IaaSspending5-10xgrowthinnewappsandservices,includingIoTandcognitivesolutionsPenetrationof"cloudcode"intoon-premisesoftwareExpansionofcloudmanagedandprofessionalservices”IDC

ConvergenceofIaaSandPaaSCloudServices:TheIaaSandPaaScloudservicemodelsareconvergingtoasingle,unifiedmodelthatcombinestheseservicesasanintegratedIaaS+PaaSofferingwhichwilldisruptexistingmarkets.EnterpriseswilltransformnicheIaaSofferingsintohybridcloudmanagedhostingofferingsthataddvalueacrosstheIaaS+PaaSspectrum.Technologystrategistsmustunderstandtheopportunitiesandthreatsfromdeliveringandconsumingcloudservicesthroughthesehistoricallydistinctofferings.6TrendstoWatchin2017“TheacceleratingconvergenceofIaaSandPaaSintoaservicemodelcombiningthetwowilldisruptexistingmarkets.”Gartner:MarketTrends:TheConvergenceofIaaSandPaaSCloudServicesAIandIoTusecasesdrivecloudadoption:Artificialintelligenceinthecloudpromisestobethenextgreatdisrupterascomputingisevolvingfromamobile-firsttoanartificialintelligence-firstmodel.Theproliferationofcloud-basedInternetofThings(IoT)inthemarketplacecontinuestodriveclouddemand,ascloudallowsforsecurestorageofmassiveamountsofstructuredandunstructureddatacentraltoIoTcorefunction.

7IBM:Thefutureisallcloudand

AIIndustryCloudswillbeoneofthefastestgrowingsegments:Theindustrycloudmarketisgrowingfast,withdozensemergingeachmonththroughoutmanyindustries,includingfinancialservices,healthcare,lifesciences,manufacturing,retail,energyandgovernment.Industrycloudswillcreatebroadindustryvaluebyaggregatingcostreduction,operationalbenefits,riskmitigation,and/orinsightcreationviapooledinformation.8ZDNet:Thecloud'sfutureisverticalTrendstoWatchin2017(continued)Containerswillaltercloudplatformandmanagementstrategies:Linuxcontainers,popularizedbyDocker,willbeavailableineverymajorpublicandprivatecloudplatformbyearly2017.Developerswillconsumethemdirectlytopowermicroservicesdevelopment.ThiswillmeanthatorganizationswillberethinkingtheirPaaS,containerorchestrationandcloudmanagementneeds.TheorganizationswillhavetoalterthecloudstrategytoacceleratetheirpathtomoreeffectiveDevops.9“Containertechnologysitsatthecenterofcloud-nativeapplicationsandplatformsandprovidesbusinessandarchitecturalbenefits,suchasimprovementofDevOps-stylesoftwaredeliverytoaccelerateinnovation,aswellasperformanceadvantagesforinfrastructureautomationandefficiency”:CharlieDai,ForresterAnalyst

HybridCloudServices/Platforms.Hybridcloud-andhybridIT-istheendgameforthemajorityofenterprises.Integrationandmanagementarecomplicateddrivingenterprisestoseekhelpfromserviceproviders.Enterprisesarealsoseekingplatformsthatcanmanageanddeployaconsistentsetofcloudservicesforuseinbothon-premisesandoff-premisescloudsandimproveinteroperabilityandintegrationofdatafromdifferentimplementations.10“EnterpriseswilldemandthatITvendorscraftaholisticplatformtoallocateworkloadsstrategicallytothebestexecutionvenue,anddosowhilemanagingbusinesscontinuityacrosswhathasbecomeahybridmulti-cloudenterprisearchitecture.”:451ResearchCloudhyperscaleprovidersgrowthcreatesvirtuouscycle:Hyperscaleproviderswillcontinuetoleveragescale-drivenbenefits(e.g.,lowercost,largeuserbase),toexpandtheirgeographicfootprint,developuser-requestedcapabilities,attractpartners,andcommandmarketattention,leadingtoavirtuouscycle.Growthallows/driveshyperscalerstoexpandbeyondcloudintoadjacentspaceslikeIoT,AI,analytics,andservices,becomingevermoreentrenchedwithintheircustomerbaseandfeedingthevirtuouscycle.“Asnetworkupgradescontinuetopropupcloudgrowthoverall,thehyperscaleclouddatacentersarecomingandtheywilldrivenewserverandstoragedeploymentsoverthenextfewquarters.”:IDCEmergingTrendstoWatchin2017Workloadacceleration:Cloudprovidersareincreasinglyadding“workloadacceleration”hardwaresuchasGPUsandFPGAstotheircloudinfrastructuretoprovidehigherperformanceandenablenewfeaturesandworkloads.2.Serverlesscomputing:Serverlesscomputing,orFunctionasaService(FaaS),israpidlygainingtractionasameansofconsumingcloudservices,especiallyforimplementingmicroservicesorcreatingsimple,low-cost,trigger-basedactivities.11IBM:WhychooseaserverlessarchitectureTrusted/hardened/shieldedVMs:Incloudenvironmentsthatpermitmultitenancy,workloadisolationandsecurityareparamountcustomerconcerns.Majorcloudprovidersaredeliveringsolutionstosecurelyisolateguestworkloadsfromtheirhostandeachother.Datacenterproliferation:Customerrequirementsfordatasovereignty,regulatorycompliance,andapplicationlatencydemandcloudsdeployedonaglobalscale.Suchdeploymentsrequireamassive,ongoinginvestmentofcapitalandresources.Cloud-basedmanagementofon-premisesandmobileassets:Globaldeployments,decentralizedself-serviceIT,andmobileworkforcesaredifficulttomanageusingon-premisesconsolesandrelateddatastores.Cloud-basedsolutionsenableassetmanagementanywhere,fromanydevice.12IBM:LearnAboutTheTopFiveTrendsToWatchInCloudComputingDuring2017SecurityandotherchallengescontinuetoinhibittheadoptionofcloudcomputingsolutionsandservicesSecurity.Enterprisecloudadoptionrequiresastructuredapproachtosecurity.Cloudcomputingisverydifferentthanphysicalorvirtualservers,whichtranslatesintoadifferentcybersecuritymodelaswell.Andthesedifferencesleadtoavarietyofsecuritychallenges.Skillsgapsremain.Integratingmulti-cloudandhybridITenvironmentscanbeacomplexproject,especiallyforsmallandmediumbusinesses.Manyfirmsdesirein-houseskillsbeforeinvestingincloudsolutions.13IBM:CloudSecurity“Asenterprisescontinuetofocusonimplementingacloudinfrastructure,manystillfaceroadblockswhenitcomestohiringcandidateswiththerightskills.”CIODatalocationandprivacyaregrowingconcerns.Wherethedataresidesisimportantformanyfirms,especiallywhenconsideringregulatoryandcompliancesolutions.EnterprisesneedbettermeteringandusagetrackingcapabilitiestounderstandROI.ImprovedcapabilitycanhelpfirmsoptimizeexistingcloudusageandprovidethemvisibilityintotherealcostandROI.ITandLOBownershipissues.Forsomefirms,ITandLOBcloudpurchasingandownershipconflictscanslowdownprojecttimelines.

14InformationAge:TheTopChallengesOfCloudAdoptionAndOptimizationYouMustPlanForSelectedIBMResourcesandLinks

linksIBMCloud

IBM’scloudcomputingportalMarketplaceSolutions

Bluemix

Softlayer

DevOpsServicesHybridIntegrationCloudManagedServicesDeveloperWorks

CloudportalfordevelopersLearnaboutCloudComputingIBMTools/CodePartnerworld

CloudComputingportalforPartnersIBMRedbooks:Cloud15DeveloperWorks

CloudportalfordevelopersIBM:BrokerSoftwareandCloudServiceswithIBMCloudBrokerageSelectedAnalystWebsitesandResources

451Research:CloudTBRResearch:Cloud

Forrester:

CloudComputingandCloudBlogPosts

Frost&Sullivan:

SearchforCloudComputing

Gartner:ResearchandBlogs

GigaOM:CloudIDC:

CloudComputingSynergy:PressandResearch16IDC:

CloudComputingForrester:

Webinar“Publiccloudservicesarethebiggestdisruptioninthetechmarketinthepast15years—andadoptionisaccelerating.”ForresterSelectedSocialMediaWebsites&Searches

GoogleSearch:

CloudComputing

LinkedInGroupSearch:

CloudComputing

PinterestSearch:

CloudComputing

Slidesharesearch:

CloudComputing

Twitterhashtags:#cloud/#cloudcomputing/#cloudchatTumblrSearch:

CloudComputing

YouTube:

CloudComputingPlaylistsandCloudComputingChannels

17PinterestSearch:

CloudComputingLinkedInGroupSearch:

CloudComputing

SelectedIBMSocialMediaChannelsIBMSocialMediaSitesandAccountsThoughtLeadershipBlog:

ThoughtsonCloudDeveloperWorks:BlogstaggedcloudTwitter

IBMCloud/Hashtags:

#ibmcloud

/#smartcloudFacebookPage:

IBMCloudInstagram:Poststagged#ibmcloudYouTube:

IBMCloudGoogle+page:

IBMCloudComputingLinkedInGroup:

IBMCloudComputingDeveloperworks:ConnectandCollaborateonCloud18Youtube:IBMChannelTwitter

IBMCloud

19ThoughtsonCloud(Blog)OtherSelectedReportsandResources

451Research:

2017TrendsinCloudTransformation(ExecSummary)Bloomberg:

5trendsforcloudcomputingandthedatacenterin2017CIOToday:

Infrastructure-as-a-ServicePredictionsfor