MSP Today Expert Feature
June 23, 2014

Next Wave of Enterprise Cloud Computing to Focus on Front End and Revenue

Major changes in computing architecture do not occur overnight, but every change in computing architecture has implications for wide area network data traffic. According to Ericsson (News - Alert), for example, in 2013 data traffic across global networks was eight times as heavy as voice traffic.

That is a direct consequence of a shift to cloud-based or distributed computing, widely used by consumers. That is a shift from past eras, where data traffic on wide area networks was driven by business computing centers.

Most of today’s growth is driven by use of the Internet by consumers. In the past, wide area network data traffic was driven by enterprise computing centers.

Recent Gigaom Research surveys suggest that another big round of cloud-technology adoption is coming.

Though one might argue the first wave of cloud-based computing was driven by startups, the next wave will be driven more by companies re-inventing their own businesses, Gigaom suggests.

Software as a service (SaaS (News - Alert)) is mainstream with over 60 percent of survey respondents saying they are currently using some applications.

Over one third currently use infrastructure as a service (IaaS), and within two years over half expect to do the same.

Software-defined-networking (SDN), in perhaps two years, might have a 30 percent adoption rate.

Platform as a Service (PaaS) and database as a service should also display rapid growth—within two years will cross the 40 percent threshold, according to Gigaom.

More than 40 percent of leading-edge tech buyers surveyed indicated that “creating new businesses and revenue streams” are among their near-term strategic objectives for using cloud-based applications and services.

Another 35 percent want to – or already do – run their company off the cloud.

Unsurprisingly, just about everyone is moving their web operations to the cloud, but 25 percent of respondents also are moving significant transaction processing.

Some already are moving front-end marketing and sales operations to cloud-based methods as well. Traditionally, companies “experiment” first with back office operations, then gradually, will use new computing architectures for customer-facing operations later. That pattern does not seem to have changed.

Edited by Maurice Nagle