Cloud Computing Vendor Lock-In A Growing Customer Concern

Cloud Computing Vendor Lock-In A Growing Customer Concern

As the cloud computing market continues to consolidate around several large vendors, major customers are starting to split up their cloud business to avoid giving too much power to one company.


That's among the trends spotlighted Tuesday by research firm IDC in its information technology predictions for 2019 and the next few years.

By 2022, four “cloud mega-platforms” are likely to control 80% of the cloud infrastructure market, IDC Chief Analyst Frank Gens told Investor's Business Daily. The leading vendors in the market today are‘s (AMZN) Amazon Web Services, Microsoft‘s (MSFT) Azure and Alphabet‘s (GOOGL) Google.

As this consolidation occurs, there will be “counter movement” by Global 1,000 companies to fight against vendor lock-in, Gens said. They'll do it by spreading business around. Increasingly large corporate customers will embrace “multicloud technologies,” he said.

“They don't want to get locked in” to a particular internet cloud services company, Gens said. Multiple large cloud infrastructure players will give customers bargaining leverage to secure good deals, he said.

IBM-Red Hat Deal A Response To Cloud Computing Trend

As part of the trend, enterprise customers will be looking for tech providers that can manage and integrate multiple cloud services.

IBM‘s (IBM) recently announced deal to buy Red Hat (RHT) appears to be in response to the emerging trend.

“The IBM-Red Hat deal is about helping IBM have technology to allow it to help customers across this distributed multicloud world that is the center of this future,” Gens said. “Red Hat is a big player in multicloud technologies.”

In the next year or so, the major cloud players will bow to customer demands. Customers will seek more choice and freedom of movement across multiple services, Gens said.

“This is a key trend for the next 12 to 18 months,” he said. “That is, bridge building across different cloud universes.”

Artificial Intelligence As A User Interface

Other IDC predictions involved edge computing and artificial intelligence.

For instance, artificial intelligence-based user interfaces and process automation will replace one-third of today's screen-based apps by 2024, IDC predicts.

For many apps, voice-based AI technology will be the user interface. Think Amazon's Alexa or Alphabet's Google Assistant.

By 2022, 30% of enterprises will use conversational speech tech for customer engagement, IDC says.


Red Hat Stock Soars On IBM's $34 Billion Acquisition Deal

Next Big Thing In Cloud Computing Puts Amazon And Its Peers On The Edge

Source link


Please enter your comment!
Please enter your name here