Enterprise Cloud Strategy Trends for 2019 – Part 1

Cloud computing is fueling digital transformations and modernizing IT portfolios and has become the de facto platform for them. By renting software through vendors such as Amazon Web Services (AWS), Microsoft and Google, companies are increasingly finding business agility or cost savings. Most enterprises procure cloud services from two or more vendors and the trend that will gain traction in 2019, boosting the coffers of AWS, Microsoft, Alibaba, Google, IBM and Oracle, which according to Forrester Research will enjoy the lion’s share of the $200 billion in global public cloud spending for 2019.

As companies modernize core business apps with analytics, machine learning (ML), IoT, messaging, and database services created in the cloud, the innovation-seeking approach will boost enterprise adoption and spending. Here is our take at the key trends shaping cloud adoption in 2019.

Multi-cloud strategies gain traction

State Farm is playing the long game when it comes to the public cloud. The insurance company is moving its first two core applications to the public cloud over the next several months, thus making big bets on rented software. The conservative approach is by design “to make sure we have the right controls” for compliance and security. State Farm is embracing public cloud software from multiple vendors by moving its Drive Safe & Save mobile application to AWS this year in their journey of migrating from mainframes and legacy servers and also plans to move software for pricing and underwriting models there early next year. While AWS is State Farm’s primary cloud provider, it also works with Microsoft Azure and Google Cloud Platform to vary its options.

Diversifying cloud options is a not an uncommon phenomenon. While Honeywell is using IBM and Microsoft Azure, General Electric uses both AWS and Azure services. The move for State Farm is part of a broader shift to agile and “cloud-native” software development to achieve greater flexibility in writing software in the future.

Keep watching the space to know more about the key trends shaping cloud adoption in 2018.

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