The era of cloud

18 Mar 2015

The overarching concept of delivering computing resources through a global network began in the 1960s and has since evolved through a number of phases, including grid and utility computing, application service provision (ASP), and Software as a Service (SaaS). And the cloud has become a phenomenon, set to change the face of technology and enhance how businesses achieve their strategic imperatives.

Douglas Woolley

It challenges existing business models, creates annuity-based services and a sales model that most service providers are finding hard to come to grips with, as 90% of the industry has become accustomed to selling tangible infrastructure to customers with speed and feeds defining their ROI.

More and more companies are adopting cloud, and CIOs are including cloud as part of their overall IT strategies with well-defined plans on cloud adoption. However, customers who implement cloud are looking at hybrid cloud implementations as opposed to pure cloud implementations, as it is very difficult, if at all possible, to move everything to the cloud because of the complexity and legacy of modern day IT environments. The hybrid cloud offers the best of both worlds to customers as it offers a combination of strengths. It allows the customer to achieve the performance of on-premises solutions, as well as the added value provided by the management convenience of a pure cloud business model.

Convergence, the name of the game

More applications will become cloud-ready, more investment in research and development and more vendors defining their cloud strategies and partner models. Cloud as a platform will challenge existing resellers and create opportunities for companies who are willing to innovate. Increased competition in the cloud space will give way to better products, services and innovation from those companies that embrace the change. Convergence will be name of the game with IT integrators, vendors, telcos and other service providers will form alliances such as banks, utilities and public sector.

As this happens, the challenge then becomes for cloud service providers to remain competitive and ahead of the curve to ensure efficient delivery of services to clients. Service providers will need to move up the stack by focusing on the application service that makes cloud unique and pervasive, not just on the infrastructure as a service model.

Gartner estimates that, by 2016, more than 25% of all software applications will be deployed via the cloud. However like most things there will be many opportunities to play in the cloud, opportunities for cloud integrators and cloud consultants to help customers to migrate. The underlying message, however, is that services providers must strive to move up the stack and provide as much value in the space they want to occupy.

Cloud on the African continent

South Africa and Nigeria are leading the pack in the adoption of cloud, setting the standard for the rest of the continent to follow and learn, and even improve on current cloud provisioning. Many companies that are well poised to provide cloud services across the continent.