‘Major Ripple Effect ‘Anticipated As Cloud Adoption Grows
Analysts at JP Morgan released a 50 page “note” to their investors outlining their reasoning for anticipating a major disruption of legacy technology vendors in the face of glowing cloud hosting adoption.
Sounds obvious, right? But JP Morgan has something of an inside track.
“Critical and Indispensable”
The report is the result of interviews with 207 CIOs from companies with IT budgets of at least $600 million — the 800lb gorillas of the economy. And these CIOs reportedly raved about the “transformative power” of cloud integration and cited AWS and Microsoft as “critical and indispensable” aspects of their IT deployment.
No longer the purview of forward-thinking companies looking to innovate in order to get high-impact performance at a lower price tag, cloud adoption is not only completely mainstream, its takeover may be complete within just a few more years. JP Morgan quotes one CIO as saying that his organization plans to go “all-in” with AWS.
The analysis supplied by JP Morgan anticipates that within five years, workload running in the cloud will increase from the current 16.2% to 41.3%. This “near- tripling of the public-Cloud-based workload mix represents a monumental architectural shift, which shows no signs of abating and is likely to create a major ripple effect across the entire technology landscape.”
Analysts called attention to the fact that the feedback has evolved substantially over the last couple of years. On the “Critical and Indispensable” list, Microsoft ranks first, at 45.9%. But AWS is second, at 13.9%. Can you imagine some of the biggest IT budgets built around dialing into a service that used to be thought of as the economy car of cloud vendors? One of the respondents called it a “paradigm shift” for their organization, and they’re unlikely to be the only ones.
Meanwhile, legacy vendors will be running scared. IBM, Hewlett-Packard, and Dell are the top three replies on the list of vendors who will lose market share in this new paradigm. With cloud- and cloud-first adoption taking hold in even the largest companies, CIOs evidently see these dinosaurs as emblematic of the old way of doing things. It will be interesting to see if those companies will be able to stay relevant.