Expect Intense Cloud Competition Around Data, Analytics
- By DSAITrends editors
- January 04, 2023
Top cloud providers such as Microsoft Azure, Amazon Web Services, Google Cloud, and Alibaba Cloud might have cornered the public cloud market, but the sheer size of the global cloud market leaves space for others to gain a foothold.
According to the latest analyst firm Forrester’s latest report on public cloud development, cloud providers can succeed by focusing on specific areas such as data, analytics, development, and integration.
Key cloud battlegrounds
In a blog post, Forrester predicts that the public cloud market will exceed USD1 trillion by 2026. The competition is intense, however, and it is not uncommon to see custom silicon and advanced networking capabilities being touted as differentiators.
A percentage or two of market share can make the difference in the viability of some providers, says Forrester. Invariably, cloud providers are seeking to further establish themselves beyond the boundaries of IT operations – into areas such as data and analytics given their increasingly vital role in the operations of organizations.
In a nutshell, expect previously niche areas such as data and analytics to turn into key cloud battlegrounds.
“The focus is therefore on higher-revenue services around data and analytics – it’s more revenue to feed the never-ending hyperscaler build-out and keeps non-hyper scalers in the cloud game. That’s good news for customers who increasingly demand services that enhance these capabilities and make them easier to adopt within their businesses,” wrote Lee Sustar, principal analyst at Forrester.
Moreover, artificial intelligence and machine learning (AI/ML) will matter, too: “As more customers embrace a multicloud approach to avoid dependencies on single vendors, they’re exploring alternatives for general-purpose IT or particular workloads such as AI/ML.”
Finally, cloud providers are constantly improving cloud security, continually adding new capabilities that have succeeded in winning over even the most cynical security professionals.
“Cloud providers take divergent approaches here, from a silicon-centric approach for isolation and confidential computing to multiple service offerings that in some cases include multicloud capabilities. These are welcome developments for organizations seeking better alignment between security and cloud operations.”
The “Forrester Wave’: Public Cloud Development and Infrastructure Platforms, Global, Q4 2022” report can be accessed here (Paid report).
Image credit: iStockphoto/U. J. Alexander