Frost & Sullivan’s recent analysis finds that organizations worldwide are inclined to invest in hybrid and multi-cloud information technology (IT) environments that can support users, applications, and data spread across diverse locations.
The cloud gaining momentum
As businesses recover from the impact of COVID-19, their top goals include improving efficiency, productivity, and customer experience, and are increasingly relying on data. IoT connected devices across the globe are expected to exceed 66 billion in 2026 at a compound annual growth rate (CAGR) of nearly 15% from 2017.
“Robust data management platforms are likely to be strong acquisition targets for hybrid cloud providers to integrate data management functionality into their hybrid cloud management platforms,” said Karyn Price, Information and Communication Technology Research Analyst at Frost & Sullivan.
“Businesses must use different infrastructures to meet the needs of a diverse set of applications, services, data, and users. For some applications or services, the stability and performance offered in a private environment will be best. In others, the flexibility offered in the cloud will best suit the needs of the application and the users that access it.”
Price added: “Businesses are storing the majority of their data in facilities that they can directly control, such as an on-premises data center, in a hosted private space, or at an edge or branch location. However, data storage in the public cloud is also gaining momentum as it offers promising benefits such as scalability, poolability, and accessibility for enterprises.”
Investments in technologies will drive growth opportunities in organizations undergoing digital transformation.
Businesses relying on data to improve business processes
- 75% of respondents cite a need to rely more on data to improve business processes and decision-making, which presents an opportunity for providers to develop higher-touch managed data services that help businesses develop and execute their data strategies.
- Businesses utilize data in various areas to analyze IT operations (44%), improve employee productivity (43%), reduce costs (41%), understand customers better (40%), manage operations technology (39%), and reduce errors (38%).
- 56% of businesses are experiencing solid and steady data growth of between 25% and 74% annually. For companies that use or adopt IoT technology initiatives, the rate of data growth will likely be in the 50% to 100% range.
- 65% of respondents note that deploying an app across multiple IT environments is a crucial challenge; thus, providers should offer flexibility that best suits the needs of the application and the users that access it.