• Global hyperscale IaaS providers will build capacity in new regions around the world, often leveraging colocation providers that can support their scale
• Multi-cloud requirements will drive new interoperability from major providers, more choice in multi-cloud connectivity, and more demand for cloud-native managed services
GlobalData expects core cloud market segments like infrastructure (IaaS), platform (PaaS), and software (SaaS) as a service to maintain their strong momentum of growth in 2019. For the enterprise seeking solutions, we expect to see more specialist assistance available in the form of cloud enablement solutions directly in response to the reality of a multi-cloud world. Globally, the major cloud service providers will extend their reach farther around the globe, often partnering with colocation players to speed time to market rather than buying or building their own sites. They will also need to respond along with the rest of the overall ecosystem to hybrid and multi-cloud imperatives, trading improved interoperability for continued customer loyalty. Specifically, we expect to see:
• Expansion in Middle East/Africa and Asia among global cloud IaaS providers: with China-based players now expanding beyond Asia, we expect western cloud service providers to build more capacity in the Middle East, Africa, and the APAC region. Local and regional hosting has become an imperative for some use cases, but these regions also offer the highest rate of near term growth.
• Re-Inventing colocation: The mainstreaming of XaaS means colocation providers have potential for digital as well as physical marketplaces. Equinix pioneered this with its Global Cloud Exchange, but now it is exploring ways of using NFV to deliver security features and services virtually across its footprint. Multi-cloud/hybrid cloud connectivity, back-up and disaster recovery, and distributing data to the edge are platform-style use cases that larger colocation providers are likely to pursue in 2019.
• More cooperation in multi-cloud services: Global cloud platforms themselves will make multi-cloud usage easier for their customers in 2019 through use of open source and making data and workloads interoperable between platforms. But hyperscalers are also responding to demand for private instances of their platforms for major enterprise use cases, leading to more hybrid solutions including management of on-premises appliances to ease migration.
• Cloud native managed services blossom: Even with the likes of AWS and Azure making it easier to consume their services in a hybrid or multi-cloud environment, the need for professional and managed services to support the migration and post-implementation phases help prior to implementation and in some cases after implementation will increase. Telcos with both a cloud and SI heritage are positioning for this opportunity, but they may need to acquire or partner with smaller, cloud-native managed service providers. While managed service providers are not difficult to find, there are few providers capable of delivering a consistent service globally, a key challenge that could impact growth.
For more, please see the advisory report 2019 Predictions: What to Expect in the Data Center and Cloud Services Market published on December 18, 2018.