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BLOG: Cloud in 2013: From Hype to Hyper Growth

Steve Caniano | Dec. 20, 2012
For many industry soothsayers, 2012 was going to be the year cloud went mainstream. Are we there yet?

3.      Evolution of mobile cloud

The bring your own device trend and the continuing demise of the PC as the dominant computing platform will serve to accelerate the move towards mobile cloud as more businesses become increasingly mobile and shift IT assets from their own data centers to the cloud. In this environment, security becomes more important than ever. As a result, enterprise IT will be entrusted with setting clear policies that provide security for accessing cloud applications on mobile devices and doing so without squashing the innovation enabled by cloud.

4.      Cloud clarity will start to emerge in 2013

Today there still exists a great deal of confusion over the conflicting approaches to deploying cloud by various vendors and service providers and it's not clear who businesses should turn to. This fragmentation should begin to dissipate later in 2013 and beyond as the marketplace coalesces around standards and clear winners emerge. According to Gartner, by 2015, low-cost cloud services will cannibalize up to 15% of top outsourcing players' revenue, and more than 20% of large IT outsourcers not investing enough in industrialization and value-added services will disappear through merger and acquisition.[2]  In the meantime, open source alliances will make a play against the traditional vendors. Open source will continue to gain relevance, and we'll see more commercialized services based on open source platforms coming to market.

5.      Cloud standards slowly emerge

For cloud to truly go mainstream it needs to evolve from a vendor-by-vendor solution, as it is today, to a utility platform differentiated by reliability, scalability and standardization.  Marketplace standards are driven by vendors, standards groups and market forces.  APIs will have to be standardized, and interoperability and federated cloud formations will need to happen - both in a geographic sense and within industry verticals.

Following the evolutionary trajectory of equally transformative periods in IT history, cloud has shifted from hype to hyper growth and its impact is not just changing IT delivery models but overall business models as well, unleashing innovations that have the force to reorder not only the IT industry but also nearly every industry.

[1] Source: IDC, 'Worldwide and Regional Public IT Cloud Services 2012-2016 Forecast', August 2012 (IDC #236552)

[1] Source: IDC, 'Worldwide and Regional Public IT Cloud Services 2012-2016 Forecast', August 2012 (IDC #236552)

[2] Source: Gartner, Inc., 'Gartner Reveals Top Predictions for IT Organizations and Users for 2013 and Beyond', October 24, 2012,

Steve Caniano is VP, Hosting, Managed Applications and Cloud Solutions, AT&T Business Solutions.


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