Three Trends from 2018 & Three Predictions for 2019 in Cloud Connectivity

By: Milos Marjanovic, Vice President of Product, Zayo and Dominic Romero, Senior Product Manager, TierPoint

With the proliferation of new technology, including AI, IoT, 5G and blockchain, enterprises have more data and workloads to manage than ever before. This landscape can be complex and overwhelming without a strategy to guide multi-cloud investments and the necessary knowledge and infrastructure to support that strategy.

Zayo and TierPoint have teamed up to discuss three trends and three predictions to help enterprises make savvy decisions when it comes to their cloud connectivity strategy.

Trend #1: Direct cloud connections are becoming increasingly important

Enterprises have recognized the value of utilizing the public cloud; in fact, 96 percent of enterprises now use cloud according to the “2018 State of the Cloud” report from RightScale. On average, enterprises run 32 percent of workloads in public clouds. These include mission-critical applications such as customer support platforms, billing and financial tools, and internal communication software. Enterprises are beginning to understand that using the public internet to reach these mission-critical applications is unreliable, costly and not secure. Instead, enterprises have shifted to utilizing direct cloud connections to ensure they can always access their mission-critical data and workloads in the public cloud.

Trend #2: Multi-cloud is here to stay

According to the “2018 Cloud Computing Survey” from IDG, 42 percent of organizations are using multiple cloud providers. With some planning and strategy, companies are now able to choose where their data and workloads should reside—from data center colocation to public cloud to private cloud—to perform optimally. Additionally, more than a third (38 percent) of IDG’s survey respondents report their IT department is under pressure to migrate all applications and infrastructure to the cloud. With cloud technology continuing to grow, the focus has shifted away from the importance of physical location for data and workloads and toward the value delivered from diversely distributing workloads and cost optimization.

Trend #3: Enterprises will continue to turn to AWS, Azure and GCP

Of the RightScale respondents, 64 percent have adopted AWS, 45 percent have adopted Azure, and 18 percent have adopted Google. These three major players offer enterprises agility, flexibility and lower capital expense. AWS, the clear leader of the pack, reached $41 billion in revenue in July of 2018 which is nearly 11 percent of Amazon’s overall revenue.

Enterprises can break down their application portfolio to build strategies that match applications to specific cases. Enterprises often use AWS for storage and computing large data sets, Azure for its open development platform and GCP for detailed data analytics, AI and machine learning applications.

Prediction #1: Oracle and Alibaba will grow in importance

IDG’s survey revealed that companies are expanding their portfolio of cloud vendors. Survey respondents use an average of four SaaS vendors, three PaaS and two IaaS vendors. Over the next year and a half, these respondents expect to expand their portfolio to an average of five SaaS vendors, three IaaS and three PaaS vendors.2

According to RightScale, Oracle was the fastest growing cloud service provider, growing from 5 percent up to 10 percent adoption from 2017 to 2018.1  Oracle has addressed customer feedback since launching Oracle Cloud Infrastructure 1.0 and refined their offering. OCI 2.0 includes both bare metal support and RedHat’s KVM hypervisor.

Additionally, the Alibaba cloud will become more relevant, especially for large enterprises with locations across the globe. Businesses with concentrations in APAC who are looking to embrace the benefits of a multi-cloud strategy will find Alibaba Cloud compelling.

Prediction #2: 5G wireless will increase consideration of latency

End users want better application experiences on their mobile devices. 5G wireless technologies are addressing this head-on with a focus on latency and quality of service. These considerations will bring lower latency direct cloud connections into mobile application architecture discussions as a prerequisite, not an afterthought.

Prediction #3: Security will drive more direct cloud connections

Enterprises have recognized that the public cloud is secure.  To enhance that security, more businesses are opting for direct cloud connectivity rather than using the public internet. CloudLink by Zayo, which powers CCX by TierPoint, can keep data and workloads secure through a private, direct connection from the first to the last mile. Direct connections also facilitate connections to multiple cloud providers, driving improved application performance, increased workload security and a higher level of service continuity.

To learn more about Zayo’s CloudLink and other solutions for enterprises, please click here.

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