Global Hybrid Cloud Services Market to Grow at an Impressive CAGR of 20% Until 2020, Reports Technavio

Technavio’s latest report on the global hybrid cloud services market provides an analysis on the most important trends expected to impact the market outlook from 2016-2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.

Amit Sharma, a lead analyst from Technavio, specializing in research on cloud computing sector, says, “Hybrid cloud provides the organization a self-service approach that allows them to work independently without delay or even eliminating the need for additional capital expenditure. In a hybrid cloud environment, applications can be moved back to the enterprise data center to establish in-house production environment. Hybrid cloud helps organizations to achieve speed and agility for line-of-business and security and control for IT operations.”

A large number of organizations are realizing that virtualization and private cloud computing turn out to be expensive in the long run. Many organizations are moving their infrastructure to hybrid cloud to gain monetary benefits and enjoy advantages of both public and private clouds.

The top three emerging trends driving the global hybrid cloud services market according to Technavio ICT research analysts are:

• Vendors foraying into the market space
• Increased adoption of hybrid cloud in ITSM models
• Evolution in cloud computing models

Vendors foraying into the market space

The exponential growth of cloud-based services has encouraged startups to enter in the cloud domain through the adoption of on-premise services. Earlier, companies faced rigorous challenges in terms of costs, monitoring, and migration to the cloud. However, by implementing hybrid cloud services, SMEs can still continue with their legacy applications with majority of the services hosted over the cloud through backup and high availability.

As cloud services continue to mature, cloud management services face more advanced problems related to performance, availability, data latency, and costs. Now, a large number of vendors are shifting to hybrid solutions due to promising opportunity of these solutions, which is also driving product innovation.

Increased adoption of hybrid cloud in ITSM models

The hybrid deployment model for IT service management (ITSM) services is gaining pace over the cloud-based model. To overcome shortcomings of both on-premise and cloud-based models, customers are turning to the hybrid model. Hybrid models are more flexible and give a way for customization to suit individual business needs of customers. Also, this model provides automatic upgrades and the ability to handle and monitor complex IT transactions related to advanced computation models of deployment. Firms looking to increase their ITSM capabilities without adding servers or related infrastructure are now moving to hybrid models.

However, this model presents some concerns. Instead of giving the best out of both on-premise and cloud-based models, it can result in creating unnecessary complications for the firm’s IT operations.

Evolution in cloud computing models

A paradigm shift is observed due to the emergence of infrastructure as a service (IaaS) and on-demand cloud providers such as Amazon Web Services. The emergence of IaaS and on-demand cloud providers has given birth to a new virtualization strategy that most enterprises are quickly adopting to eliminate infrastructure limitations by developing and deploying applications on a single piece of hardware. The evolution of IaaS and software as a service, SaaS, has opened up many opportunities for small enterprises and startups. They now have the option to explore and deploy their ideas with greater agility.

“Enterprises are finding the hybrid cloud attractive as it allows them to achieve a lot while staying within their budget limits. Also, the hybrid cloud helps enterprises to restrict highly critical applications to on-premise infrastructure so that enterprises need not compromise any of their security and compliance requirements,” says Amit.