JP Morgan Predicts a Monumental Shift to the Cloud
Analysts at multinational financial firm JP Morgan are making waves in the tech industry with the release of a 50-page note to clients that predicts that cloud computing is about to enter a second wave, with massive implications for some big names in the industry.
The firm conducted a survey with over 200 chief information officers of corporations with annual budgets over $600 million. Based on this survey, the analysts drew the startling conclusion that currently 16 percent of workloads are running in the public cloud and 41 percent will be in five years, meaning the cloud will have a 20 percent compound annual growth rate during this time.
What This Means for Spending
This massive spending shift in the cloud is coupled with a reported 2.7 percent decrease in spending on non-cloud technology, according to research firm IDC. While non-cloud spending is still higher than cloud spending, the implications are clear that a monumental architectural shift is under way in global enterprises.
What This Means for Companies
With those statistics in mind, the 200 CIOs were asked to rank which mega-IT vendors are best positioned to take advantage of the shift to cloud architecture.
Microsoft was ranked the most critical mega-vendor by 46.9 percent of all respondents, which is a reflection of the company’s long-standing status as a solid, reliable enterprise partner. In second position came Amazon with a 13 percent response, closely followed by Cisco at 11.6 percent and Oracle at 11.1 percent.
JP Morgan’s analysts claim that the fact that Amazon was able to leapfrog over long-established IT providers “signals a potentially momentous changing of the guard.” They say that this reflects Amazon’s ROI and the company’s appeal to IT professionals. It also shows that threats to traditional, on-premises solutions are real.
Finally, the analysts report that the firms with the most to lose from this changing of the guard are industry veterans, such as HP and IBM. These traditional companies will have to fight hard to ward off the challenge of smaller, more flexible operators.