Cloud Infrastructure (IaaS) and Platform (PaaS) TrendsJózsef Bakk

Country Manager- IDC Hungary

October 2019© IDC

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o Worldwide and Hungarian cloud trends

o IaaS market trends

o PaaS market trends

o Future View of the Market

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Worldwide cloud spending

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100

150

200

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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Hungarian cloud spending – million $

IaaS PaaS SaaS

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Cloud spending - Hungary

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But Why

IaaS

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Existing applications lead initial public cloud adoption at enterprises

Source: IaaSView Survey 2018,

Implication ➔ consistency with on premises environments and ease of migration are valuable in early adoption phase

Q. What situational reasons triggered your company’s initial consideration to use Public Cloud IaaS?

Existing applications lead initial public cloud IaaS adoption

Pattern is consistent across size & geographic segments, vertical segments, and cloud providers.

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Cost alone is not the top driver of public cloud IaaS adoption, and drivers vary by enterprise

Source: IaaSView Survey 2018

Public cloud IaaS is being seen as the secure option

Global reach and ease of use are among top drivers

Cost alone is no longer the primary driver

Q. Please select the top 3 factors that drove/are driving the decision to use public cloud IaaS instead of other alternatives.

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Cost alone is not the top driver of public cloud IaaS adoption, and drivers vary by enterprise

Source: IaaSView Survey 2018

Q. Please select the top 3 factors that drove/are driving the decision to use public cloud IaaS instead of other alternatives.

Notable variations by segment

In LATAM, the top driver is better TCO – likely reflecting an earlier phase in adoption

Global reach is the top driver for SaaS providers

ISVs report ease of use as the top driver, and rank better data security among the lowest 3 drivers

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Total cost of operations and migration are most commonly seen drivers of provider selection

Source: IaaSView Survey 2018,

Q. Please select the top 3 factors influencing your organization’s selection of a public cloud IaaS provider.

Cost of migration and operations are important when selecting a provider

Enterprises are also thinking ahead to the next phase of transformation

Consistency by itself is not a priority, but the by products of consistency are important (migration cost, operations cost, etc.)

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But other factors are more important for a significant portion of the market

Source: IaaSView Survey 2018

Q. Please select the top 3 factors influencing your organization’s selection of a public cloud IaaS provider.

PaaS

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Choice of IaaS Vendor Drives PaaS Vendor SelectionThere is significant overlap between IaaS and PaaS vendors

H2. If you do use more than one IaaS and PaaS vendor, approximately what % of your PaaS vendors are the same as your IaaS vendors?

PaaSView and the Developer | 2019

46% of respondents noted that their

50% of their PaaS vendors were the

same as one of their IaaS vendors (of

100 companies, 46 have a PaaS vendor

that is the same as an IaaS vendor)

Approximately one third of

respondents noted that their choice

of a PaaS vendor was the same as one

of their IaaS vendors 75% of the time.

n = 2,169Source: PaaSView and the Developer, 2019 © IDC 13

Worldwide Competitive Public Cloud Platform as a Service Revenue Snapshot

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Serverless continues rapid growth

Note: Chart legend should be read from left to right, starting with the top row.Source: Worldwide Competitive Public Cloud Platform as a Service Forecast, 2019–2023 (IDC #US44641619, July 2019)

($B) (%)

Selected Segment Growth Rate

▲ Data and AI CAGR 33.0%

▲ Application platforms CAGR 27.5%

▲ Integration CAGR 22.8%

▲ App dev and life cycle CAGR 22.1%

▲ Serverless platform services CAGR 35.6%

▲ Spatial information management CAGR 20.2%

Total Market

CAGR

29.5%

2018–2023 Revenue ($B) with Growth (%)

F1. In the last 12 months, which of the following emerging technology areas have you or your team personally developed applications for? Select all that apply.

Source: PaaSView for the Developer, 2019, IDC

Developers Build AI/ML, Social Networks and IoT-applications more than other Emerging Technologies

PaaSView and the Developer | 2019

The dominant emerging technology that developers have encountered is the addition of intelligence to applications, whether it be through AI/ML, cognitive computing, bots or the use of robotics

Social networks are illustrative of intense contemporary interest in collaboration and sharing functionality

Developer engagement with IoT technologies illustrates importance of location-aware applications and edge computing

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▪ Cost

▪ Vision

▪ New technologies

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Drivers

▪ By 2021, 70% of new enterprise applications will be developed cloud native, based on a hyperagile architecture, but only 10% of those environments will have machine learning capabilities built in.

▪ By 2024, 90% of Global 1000 organizations will have a multicloud management strategy that includes integrated tools across public and private clouds.

▪ Enterprises' need to optimize ROI, reduce budgets, and cope with scarcity of cloud experts drives spending on managed cloud services to nearly $75 billion by 2022 and almost 25% of technology outsourcing.

▪ By 2020, 40% of organizations will have invested in automation, orchestration, and development life-cycle management of cloud-native applications to realize the cost benefits and operational efficiencies.

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Future View of the Market

For More Information

LinkedInhttps://www.linkedin.com/company/idc

Twitterhttps://twitter.com/@IDC

www.idc.com

József Bakk

jbakk@idc.com

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