Hybrid Cloud and Co-location 2021 Growth Areas, Says Frost & Sullivan

Image Credit: iStockphoto/metamorworks

Hybrid cloud and colocation are two of the leading trends for corporates in 2021 and present significant opportunities for players in the cloud industry, according to research from analyst group Frost & Sullivan.

According to Frost & Sullivan, 52% of organizations worldwide are using public cloud infrastructure-as-a-service (IaaS), with another 34% expecting to do so in the next two years.

To execute this strategy, 64% of organizations have engaged third party managed or professional service providers to assist in their cloud journeys, with another 27% considering the move in an overwhelming endorsement of outsourcing to specialist providers.

Frost & Sullivan nominated five areas of growth for providers in 2021. They are hybrid and multi-cloud, colocation, data migration, managed services and an area they call “digital overconfidence.”

On hybrid and multi-cloud, the analyst group says that 43% of organizations globally are using a multi-cloud configuration, with another 41% planning to do so over the next two years.

At the same time, 42% of organizations are using hybrid cloud, with another 43% planning to do so.

Frost & Sullivan advises organizations on this journey to invest in open source technologies and application programming interfaces (APIs) which allow users to migrate and integrate applications.

On colocation, rapid demand is forecast with data center and interconnection facilities to the fore, with both retail and wholesale colocation in a growth trajectory.

Frost & Sullivan says that 47% of organizations are using colocation services today, with another 37% planning to do so – in some form – as part of their infrastructure mix in the next two years.

The drivers of this growth come from the movement towards decentralized computing and storage which comes from edge computing as workloads move closer to data collection points.

On “digital overconfidence,” Frost & Sullivan sees many organizations wrongly judging that their digital capabilities are more advanced than they really are.

They see they are more advanced and mature than competitors, and this is often not the case.

According to Frost & Sullivan research, 67% of organizations believe they are ahead of others in their industry in terms of the digital maturity.

But at the same time, Frost & Sullivan only rates 16% of these organizations at the highest standard against the firm’s Cloud Maturity Model, which looks at areas such as hybrid and multi-cloud adoption, app development and flexible networking. 

Image Credit: iStockphoto/metamorworks