In part one of the 2016 predictions, I wrote about the integration between e-commerce and point-of-sale systems, the growth of website and app builders, and malicious attacks aimed at infecting clouds.
This post deals with some of the challenges the cloud and hosting industry is facing in 2016 and beyond.
Standardization and Telecom Support will Help IoT Take Shape
While not particularly important in the early days of IoT, standards will help further development; Telecoms need to facilitate IoT
The Internet of Things has been connecting more and more devices and the number of smart devices could be nearing 5 billion. Yet IoT’s spread is not accompanied by universal standards that govern how these technologies operate. Standards are being developed by the likes of 3GPP, IEEE, the Bluetooth SIG, and the Weightless SIG. Disagreement around standards is common among organizations, and many are promoting their own favorite standards.
Nest, for instance, has put its weight behind Thread, a relatively new standards group that covers networking, power conservation, security, and product compatibility. Thread specifies that devices must use IPv6 addresses, which provide the necessary address space as the number of internet-connected devices is set to explode.
It’s very likely, however, that companies will rally around IEEE’s the IEEE IoT Initiative. and use its architectural framework for cross-domain interaction, system interoperability and functional compatibility.
While standard protocols have helped spread many web technologies, there’s evidence that device makers aren’t as concerned about IoT standards because different devices often don’t need to communicate directly, but rather connect on the web layer through RESTful and SOAP web services. The prevailing attitude seems to be that engineers should just build devices and not wait for standards.
There are also significant barriers IoT wireless connectivity. Telecoms will have to create new ways to deliver wireless connectivity to a host of IoT devices, however, they tend to react to changes slowly. In the next few years, we might be lucky if we see IoT-based bundles.
The flood of IoT data will also dramatically impact enterprise networks, and compel enterprises to use cloud-based solutions to meet performance requirements especially for applications like data anaytics where speed is paramount.
IT Spending Will Rise Around BI, Analytics, Security and Apps
Businesses are investigating new services and technologies around new capabilities, and overhauling their data storage practices
Tech leaders responded that they were most actively researching the following specific technology initiatives: Internet of Things (43 percent), Windows 10 deployment (38 percent), predictive analytics (37 percent), BI analytics (37 percent), and software-defined networking (percent 34%).
The areas being upgraded or refined, according to respondents, are data management (26 percent) and business continuity and disaster recovery (23 percent).
Developers will Update their Coding Practices for the Cloud
Organizations are realizing that IT can give them an edge on their rivals. And many are realizing they need more control and flexibility when it comes to deploying applications.
Half of enterprises with more than 1,000 employees are planning to use DevOps principals or have already begun, according to IDG. The practices they’re focusing on include Waterfall, Agile development and interactive/incremental development. Many are also addressing security upfront within the planning and building stages rather than tacking it on at the end.
The Return of Managed Services as Companies Move more Complex Services to the Cloud
Many businesses have already made the move to public cloud services for things like email and file sharing.
This represents the low-hanging fruit of cloud hosting.
But when it comes to moving more complex and custom applications to the cloud, it can become significantly harder. That’s why managed services providers will continue to be relevant especially once businesses reach the limit of what their IT staff can do using Amazon Web Services and Azure.
Other Trends in Brief
Cloud will continue to battle over enterprise clients
AWS and Google have been trying to move up-market to enterprises, but it’s still difficult for them to woo customers away from the likes of IBM and Cisco, which bodes well for those companies and their clouds.
Market consolidation is so prevalent in the hosting industry that it hardly qualifies as a trend, and there’s always speculation on what cloud companies (like acquisition hold-out Rackspace) could be bought up.
More construction of international data centers
Demand for cloud services quickly growing internationally with Signapore being just one examples of a high-growth market. To take advantage of international markets, cloud businesses may have to deliver their services from a local data center to comply with data residency laws. This is compounded with the recent revoking of the Safe Harbor agreement between the US and Europe with no replacement in sight. There’s also an issue of trust after US government surveillance was revealed just a couple years ago. Many citizens don’t trust those in other countries with their data, meaning that data centers will be built where users live.
Do you agree/disagree with these predictions? What are your predictions for 2016? Let us know in the comments!