The move from on-premise to a cloud architecture has long been underway. For over a decade businesses have taken tentative footsteps along the path. The debate has been raging for many years - when will the tipping point come? We saw the initial wave of cloud with the emergence of Salesforce at the end of the last millenium - over 21 years ago. Since then they have built towers around the world and at the time of writing are worth over $178 BILLION. Yet the move to the cloud is still ongoing. Some of the very largest global organisations are still relatively early in the move - as hard as that is to believe - but the time to move is overdue and there will be less market tolerance for not going the whole way.
Well, the race to get to the cloud has suddenly taken a giant leap forward. There is no question about it, the digitization of the economy has had a major impact over the last 3-5 years. But let's be honest, the Covid-19 pandemic and the shuttering of businesses across the world with employees forced to stay at home - it has moved the needle and the move to the cloud is now a race to the cloud. The traditional 'bricks and mortar' businesses are under massive stress and will not survive unless they can be agile, customer facing (where the customer needs them at any given time) and streamlined. They can no longer afford to run in-house (non-standard) platforms; maintain a signficant data center with the associated technology and skills that it demands; or allow for the extra time and attention needed to make changes as they once did.
On the flipside, as global businesses rush to take their systems and processes to the cloud, expect to see the dominance of the major cloud players take another leap forward. Those IT vendors not fully embracing - or indeed 'leading' in the cloud, will come under pressure from the faster moving pack. The result may lead to some traditional vendors hitting the wall or having to take evasive action in order to survive - creating an even more focused need for customers to move faster than they otherwise might.
Viewpoint Analysis expect cloud vendors to really accelerate their growth over the coming three to five year period with companies such as Amazon, Microsoft, Snowflake, Salesforce and their peer group taking further market share and increasing revenues at the expense of other well known businesses that are lagging behind with their cloud strategy.