Cloud Computing is the base for modern business models and processes
The increasing levels of networking and digitization drives the need to implement cloud technologies on and on and thus creates a huge spectrum for usage. Early adopters of the cloud establish partially complete business models and existences on distributed resource pools. Apart from the steadily increasing market volumes, there are several other indicators and measurement parameters for the rapid development of "Digital Economy".
The overall market of the conventional hardware, software and services - with a total volume of about 100 billion euros - is increasingly shifting into the service sector, which - with the exception of the pure services which are currently still primarily provided by people- is increasingly becoming the cloud market. In the current market models, a parallel structure is increasingly emerging in the service sectors which shows a shift to the cloud. In 2030, the cloud market will represent more than one third of the ICT market. However, assuming an exponential growth, it is also possible that the cloud market surpasses more than one third of the market at this point of time.
Outcome of the cloud computing boom
The outcomes of this development are manifold: Most of the business models should be modified, a few should be removed and several new ones should be added. With increasing maturity of the cloud and better understanding by the provider and user, a significant change in our market is apparent. The rapidly progressing digitalization in all spheres of life from the side of the end consumers is forcing the companies to transform their business processes so as to move closer to their customers (service & support) and above all to guarantee appropriate delivery models for their products and services.
Key trends in the context of cloud computing - as a basis for the "Internet of Things" - are the security of elasticity and increased modularity on the basis of necessary standardization and "containerization". This is increasingly the entry ticket in digital or cloud based eco-systems or platforms, which are indeed booming, but are also consolidating themselves simultaneously. Open source is increasingly becoming the lowest common denominator or the basis of open architectures, which are developing further with the help of multi cloud orchestration suites to platforms and ecosystems as well as being bonded on the basis of APIs and lastly controlled efficiently through codes.
Cloud Market Models
The maturity level of the public and increasingly that of the hybrid cloud operating models, with the exception of few cases, can be classified as "fit for business and is also considered appropriate for highly critical and demanding IT-Services. Combining the advantages of a public and a private cloud, the hybrid business in the form of hybrid cloud established itself as a preferred sourcing path for companies which have analyzed business-critical processes and services, and can evaluate services based on a heat map as per data volumes, performance / uptimes or latency and privacy/compliance so as to map so called burst-out-scenarios within the IT or business strategy. IT is increasingly a production factor and enabler of futuristic business models.
Meanwhile users are falling back on selective public cloud offerings with the help of managed service providers which are characterized by self-service and economical features. As a result of various security incidents and an increasing level of technological maturity, enterprise public cloud offerings equipped with appropriate security mechanisms or managed service contingents as well as individual SLAs are playing a vital role. The sourcing evaluation is being shaped more and more through flexibility, costs, compatibility and security. Dedicated systems are still needed in individual cases (compliance and performance) although they are becoming less significant with each passing day. For the majority of the workload, this business model is too expensive and inflexible. The manually managed or increasingly automated "Managed Virtual Private Cloud" (Enterprise Public Cloud), on the other hand, is much more frequently requested and offered by local providers.
From the provider side, apart from the public cloud providers, the traditional hosting providers are also forming or transforming themselves and are acting as the link between the worlds of private and public cloud. Several providers are also shrinking their own infrastructure resources and increasingly relying on cooperation with public cloud providers.
The IT Service Providers have to specially balance between "make or buy" or maintaining their own core competencies during this change in the ecosystem. Owing to the increasing standardization, the providers must be quick to find a forward looking futuristic business model which fits in this consolidation wave. Several providers will stop using high quality managed services, which are characterized by individual contracts and a high proportion of professional consultation and integration services. On the other hand, the maturity level of the existing infrastructure is continuously increasing thanks to the standardization and sourcing cockpits or dashboards and infrastructure API. This development leads to an optimal utilization of resources in order to optimize the TCO computation from the provider's viewpoint and to offer customers elastic services in the "high volume / low margin" segment. Even here the mix is significant!
IT Service Management is relevant as before
The sourcing discipline is characterized by the mandatory offshored requirements management, which balances costs and benefits on this basis and recommends resources from public or private (managed) models or both as required. The trend for hybrid cloud is supported by the necessary technological maturity of the cloud stacks, which not only changes the IT landscape and brings in a new understanding of the IT landscape from the user side, but also creates the business field of the cloud broker and enabler on the provider side.