Gartner: Cloud giants' dominance poses challenges for users

Top 10 providers could gain "unchecked influence" over customers

Gartner predicts the top 10 cloud providers will account for 70% of IaaS revenues in the next three years, with the likes of AWS, Microsoft, Google and Rackspace dominating the leaderboard more than ever.

These top 10 firms took 50% of the market in 2017, according to Gartner's Forecast Analysis: Public Cloud Services, Worldwide, 4Q17 Update, and Gartner suggested that the smaller players stand little chance against the big boys, with the larger firms in danger of getting "unchecked influence" over users as a result.

"The increasing dominance of the hyperscale IaaS providers creates both enormous opportunities and challenges for end users and other market participants," said Sid Nag, research director at Gartner.

"While it enables efficiencies and cost benefits, organizations need to be cautious about IaaS providers potentially gaining unchecked influence over customers and the market," Nag explained.

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

He added that organisations will demand more from IaaS providers, particularly around the ease with which they can switch between multiple clouds, rather than focusing on one supplier. They will look to form alliances with the vendors that allow for multicloud agreements, rather than those that penalise users that have more than one supplier.

As more businesses realise the benefits of the cloud, they are becoming more demanding across the board, Nag added. This has already become apparent in the SaaS market, which is expected to grow revenues by 22% this year to $73.6 billion - the largest cloud segment, where firms want tools that specifically align to ther business objectives, rather than being a one-size-fits-all offering.

"In many areas, SaaS has become the preferred delivery model," said Nag. "Now SaaS users are increasingly demanding more purpose-built offerings engineered to deliver specific business outcomes."

Elsewhere IaaS is expected to grow by a third to hit $40.8 billion in revenue in 2018, and PaaS to reach $15 billion. The public cloud market as a whole is expected to grow 21% this year to reach $186.4 billion.

In the PaaS sector, database platform as a service (dbPaaS) is the fastest growing sector, with hyperscale cloud providers snapping up the opportunity to diversify their services.

"Although these large vendors have different strengths, and customers generally feel comfortable that they will be able to meet their current and future needs, other dbPaaS offerings may be good choices for organizations looking to avoid lock-in," Nag added.

Advertisement - Article continues below

Picture: Shutterstock

Featured Resources

What you need to know about migrating to SAP S/4HANA

Factors to assess how and when to begin migration

Download now

Your enterprise cloud solutions guide

Infrastructure designed to meet your company's IT needs for next-generation cloud applications

Download now

Testing for compliance just became easier

How you can use technology to ensure compliance in your organisation

Download now

Best practices for implementing security awareness training

How to develop a security awareness programme that will actually change behaviour

Download now
Advertisement

Recommended

Visit/microsoft-azure/34748/meet-azure-arc-a-microsoft-platform-for-those-that-want-a-bit-of-everything
Microsoft Azure

Meet Azure Arc, a platform to simplify deployment management

4 Nov 2019
Visit/nas/27920/best-nas-drives
network attached storage (NAS)

Best NAS drives 2019

26 Apr 2019
Visit/cloud-storage/32814/dropbox-business-advanced-review-first-rate-filesharing
cloud storage

Dropbox Business Advanced review: First-rate filesharing

22 Jan 2019

Most Popular

Visit/microsoft-windows/32066/what-to-do-if-youre-still-running-windows-7
Microsoft Windows

What to do if you're still running Windows 7

14 Jan 2020
Visit/policy-legislation/data-governance/354496/brexit-security-talks-under-threat-after-uk-accused-of
data governance

Brexit security talks under threat after UK accused of illegally copying Schengen data

10 Jan 2020
Visit/operating-systems/25802/17-windows-10-problems-and-how-to-fix-them
operating systems

17 Windows 10 problems - and how to fix them

13 Jan 2020
Visit/hardware/laptops/354533/dell-xps-13-new-9300-hands-on-review-chasing-perfection
Laptops

Dell XPS 13 (New 9300) hands-on review: Chasing perfection

14 Jan 2020