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PREDICTION 6: CONSOLIDATION OF PUBLIC CLOUD PROVIDERS


In 2016 cloud architecture will most likely become more universally structured to accommodate consumers who want to diversify their cloud implementation and investment among multiple providers. But it’s important to remember that since hybrid cloud adoption is in the early stages and moving to a single cloud solution presents a challenge in and of itself, dealing with multiple cloud models can prove even more daunting.

Amazon Cloud Services currently dominates the cloud landscape, with Microsoft’s Azure and Google following behind. The gap between smaller players and the big three looms large due to the cost, sophistication of infrastructure, and service offering. Consequently, the remaining players have two options: scale to compete or focus on a niche. Both strategies tend to drive consolidation. In fact, we are already seeing companies bow out of the public cloud: think HP’s big announcement regarding Helion and a significant shift in strategy for CenturyLink.

But consumers will continue to demand portability to avoid having their data held hostage if one cloud service goes down. 2016 will be the year that vendor lock-in becomes a key issue for both cloud providers and cloud consumers.



ABOUT TANGOE

Tangoe (NASDAQ:TNGO) is a leading global provider of IT Expense Management software and services to a wide range of global enterprises and service providers. The Matrix is Tangoe’s technology and services platform designed to help companies transform the management of IT assets, services, expenses, and usage to create business value, increase efficiency, and deliver a positive impact to the bottom line.

Additional information about Tangoe can be found at www.tangoe.com.