This may explain why IDC has estimated that total spending on cloud IT infrastructure in 2016 (server, storage, and Ethernet switch, excluding double counting between server and storage) will reach over ?37 billion.
I predict we'll see the following developments in 2017:
Machine Learning Will Put the Network Front and Centre
Computing chips with built-in machine learning capabilities are poised to radically increase the intelligence of cloud applications. Enterprises will clamber to leverage this increasingly-powerful infrastructure for a competitive edge, making the performance of computing and network resources vital to the success of an organization like never before.
Automation Will Solve Legacy Culture Problems Within the IT Department.
It's no secret that IT teams spend a good chunk of time coordinating with each other and working on block and tackle projects rather than working on the innovative initiatives that could be more impactful to the business. In the coming years, many basic technology tasks will be automated, such as the spin up of new applications and infrastructure, allowing IT staff to spend their time on the work they're passionate about. For example, cloud teams are generally nimbler and able to move quickly, while networking and security teams can be seen as a bottleneck. With the deployment of automation and orchestration technologies within the data centre, the tasks that typically lead to conflict and delays between operations teams can be streamlined.
Frenemy Partnerships Will Pick Up Steam. As technology rapidly progresses, companies will be required to join forces, even with their competitors. Partnerships between technology providers - even those that compete against each other - will pave the way for a future of Digital Cohesion. We're already seeing signs of major technology players coming together to advance their work such as the recent AI partnership formed between Facebook, Google, Microsoft, Amazon and IBM.
We Will See an Increase in the Collaborative Security Industry. The security industry is slowly working towards collaboration between adversaries, but at the end of the day, collaboration remains nascent. Beyond sharing basic data, we still lack the interoperability necessary to address the next generation of threats. This has led to an increase in cybersecurity startups finding favour among funders - venture capital investments in cybersecurity startups went from less than $1 billion in 2010 to $2.5 billion in 2014. A recent study from SANS Institute found that 71 percent of respondents said access to shared threat intelligence gave them improved visibility into threats, while only 40 percent are actively contributing to threat intelligence. This disconnect indicates that all security organizations need to be working together and sharing open threat intelligence, which is crucial in order for the industry to remain one step ahead of attackers.