The release of the annual Cisco Global Cloud Index is a major touchpoint for all businesses involved with the cloud, from providers, to sellers, to users.
Taking into considerations the development of cloud applications and the associated market from 2016 to 2021, it provides an overview of trends and an authoritative snapshot of where we are at the moment. So, which trends should we be considering?
This is a huge prediction for cloud sellers and providers. It is increasingly clear that cloud computing and communication is starting to dominate the market and the data streams that back it up, but Cisco’s major prediction for 2018 shows just how far the trend will go and how rapidly.
Not only is the adoption rate increasing, but it is growing exponentially to dominate data processing as more and more businesses and individuals turn from traditional, workload-focused data centres to cloud-based data processing.
The study foresees that global cloud data centre traffic will reach 20.6 zettabytes (20.6 trillion gigabytes) per year by 2021, up from 6 zettabytes in 2016. That’s an increase of around 340% over just five years, or a 27% compound annual growth rate.
This means a rapid adoption rate of cloud-based applications and software as a service (SaaS) offerings over the next four years and beyond, as businesses look to leverage the cloud’s growing potential more fully and efficiently.
This rapid expansion is due to two business trends that have combined to support cloud growth. General data centre workload growth is already fast; overall, data centre workloads and compute instances will have more than doubled (230% increase) from 2016 to 2021.
However, as the cloud comes to account for more of the total work done in data centres, cloud workloads and compute instances will grow even faster, nearly tripling (270% increase) over the same period.
There are three major types of consistent online service provision in the modern market:
1. Infrastructure as a Service means provision of high-level infrastructure maintenance tools to organisations, allowing them to run their own virtual networks and operating systems.
2. Platform as a Service provides a platform for users to create software and applications.
3. Software as a Service includes operating system software to the end user. This is the category GoCloud falls into, and it is set to grow approximately 285% between 2016 and 2021, accounting for three-quarters of the market as the other two service categories shrink in their market share.
This is the kind of growth that made multimillionaires of everyone from rail barons to early Bitcoin investors. It’s time to get involved!
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