Digital Transformation | Hybrid Cloud | IoT

Monday, November 9, 2015

Cloud-Enabled Innovation will Empower and Disrupt

Today, CEOs in all industries and geographies recognize that in 2016 they'll have an important choice to make, regarding the development of a cohesive digital business transformation agenda -- either be empowered by superior cloud-enabled innovations, or risk being disrupted by more progressive market leaders.

The savvy business technology application leaders are already moving from proof-of-concept cloud computing environments to trusting these platforms with their mission-critical workloads. According to the latest worldwide market study by Cisco Systems, this pervasive trend continues to accelerate as demand for cloud resources increase exponentially.

The Cisco Global Cloud Index (2014-2019) forecasts that global cloud computing traffic will more than quadruple by the end of 2019, from 2.1 to 8.6 zettabytes (ZB), outpacing the growth of total global data center traffic, which is forecast to triple during the same time frame (from 3.4 to 10.4 ZB).

Several factors are driving cloud traffic's accelerating growth and the transition to cloud services, including the rapid growth in popularity of public cloud services for business, and the increased degree of virtualization in private clouds which is increasing the density of those workloads.

"The Global Cloud Index highlights the fact that cloud is moving well beyond a regional trend to becoming a mainstream solution globally, with cloud traffic expected to grow more than 30 percent in every worldwide region over the next five years," said Doug Webster, vice president of service provider marketing at Cisco.

Internet of Everything will Fuel Demand

In addition to the rapid growth of cloud traffic, Cisco predicts that the Internet of Everything (IoE) -- the connection of people, processes, data and things -- could have a significant impact on data center and cloud traffic growth.

A broad range of IoE applications are generating large volumes of data that could reach 507.5 ZB per year (42.3 ZB per month) by 2019. That’s 49 times greater than the projected data center traffic for 2019 (10.4 ZB).

Currently, only a small portion of this content is stored in data centers, but that could change as the application demand and uses of big data analytics evolves.

Today, 73 percent of data stored on client devices resides on PCs. By 2019, the majority of stored data (51 percent) will move to non-PC devices (smartphones, tablets, M2M modules, etc).


Private vs. Public Cloud Growth

Public cloud is growing much faster than private cloud. However, throughout the five-year forecast, private cloud will continue to outpace public cloud in its degree of virtualization. With businesses increasingly assessing the cost associated with IT dedicated resources and demanding for more agility, public cloud adoption will rise. The Cisco Global Cloud Index projects:

  • Public cloud workloads are going to grow at a 44-percent Compound Annual Growth Rate (CAGR) from 2014 to 2019 and private cloud workloads will grow at a slower pace (16-percent CAGR) from 2014 to 2019.
  • By 2019, 56 percent of the cloud workloads will be in public cloud data centers, up from 30 percent in 2014. (CAGR of 44 percent from 2014 to 2019.)
  • By 2019, 44 percent of the cloud workloads will be in private cloud data centers, down from 70 percent in 2014. (CAGR of 16 percent from 2014 to 2019.)

Global Cloud Workloads

  • SaaS will be the most popular and adopted service model for public and private cloud workloads, respectively, by 2019.
  • By 2019, 59 percent of the total cloud workloads will be Software-as-a-Service (SaaS) workloads, up from 45 percent in 2014.
  • By 2019, 30 percent of the total cloud workloads will be Infrastructure-as-a-Service (IaaS) workloads, down from 42 percent in 2014.
  • By 2019, 11 percent of the total cloud workloads will be Platform-as-a-Service (PaaS) workloads, down from 13 percent in 2014.

The Global Cloud Index (GCI) is generated by modeling and analysis of various primary and secondary sources. The forecast also includes a supplement on Cloud Readiness Regional Details, which examines the fixed and mobile network abilities of each global region (from more than 150 countries) to support business and consumer cloud-computing applications and services.