Hybrid cloud is growing enormously, according to a new analysis. Let’s look at what exactly a hybrid cloud is, typical uses, and the research that shows it skyrocketing.
- What Exactly is a Hybrid cCloud?
- Typical Uses of this Cloud Type
- Explosion of the Hybrid Approach
- Understanding the Hybrid Cloud Market
- Where is this Model Growing Fastest?
What Exactly is a Hybrid Cloud?
A hybrid cloud is an integration of a private cloud established in a business’s own data center with a public cloud run through a hosting provider’s data center. This strategy allows the company to shift tasks between the two environments based on price and computing requirements. Essentially, it creates a more adaptive infrastructure. An enterprise might want to use the private cloud for highly sensitive or mission-critical data, while it uses the public cloud for R&D projects, for instance.
Typical Uses of this Cloud Type
A hybrid of public and private is often used by companies that are working within various verticals. It is also common for companies with workloads that see huge shifts in activity, explains Stephen J. Bigelow in TechTarget. “For example, a transactional order entry system that experiences significant demand spikes around the holiday season is a good hybrid cloud candidate,” he says. “The application could run in private cloud, but use cloud bursting to access additional computing resources from a public cloud when computing demands spike.”
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Explosion of the Hybrid Approach
Astronomical growth of public and private cloud deployments has, in turn, accelerated the adoption of the hybrid model. In fact, more than 81% of enterprises say that they will have a hybrid system implemented by 2017, while half of large enterprises will have adopted the IT strategy by 2018. Globally, the market is forecast to expand at a compound annual growth rate (CAGR) of 34.3% between 2016 and 2022, when it will reach $241.13 billion.
The increasing popularity of hybrid cloud both among SMBs and within powerful business segments is fueling its general ascent. Over 30% of the vertical market share is within manufacturing, while 11% of it is within telecommunications and IT. Regardless of all this growth, Infoholic Research notes that this version of cloud should still be considered in the early phase of adoption.
The companies and enterprises that are implementing these clouds are able to keep whatever systems private as needed but also benefit from the pay-per-use price structure of public cloud. “In addition to that,” notes Infoholic Research, “the hybrid cloud provides a significant opportunity for cost savings by shutting down unused workloads and by helping to select lower-cost clouds based on [requirements].”
Understanding the Hybrid Cloud Mmarket
The hybrid market can be understood by looking at it from four different angles: regions, solutions, service models, and verticals. An application that is served through a hybrid cloud allows for strict control over how workloads are deployed with regard to support in different locations (as with a company that has its infrastructure in the United States and its developers in Europe).
Looking at the solutions piece, it includes management systems, network integration, and app architecture. “The application architecture model helps to enhance business value and at the same time reduces the risks involved in the transitional process,” says Infoholic. “It further helps to reduce operational cost in the long run by automating different deployment models.”
In terms of verticals, as indicated above, the largest are manufacturing and telecom/IT. Those two industries alone will account for $8.97 billion in hybrid growth in 2016, says Infoholic.
Why is manufacturing adopting hybrid cloud so aggressively? It allows them to make their operations more efficient, cut their expenses, and get broad accessibility while at the same time meeting the security requirements they need for different systems. Telecom and IT like hybrid because they want real-time automation for better productivity and cost-reduction, while being able to work remotely and collaboratively through a seamlessly connected virtual office.
“Organizations are also adopting hybrid cloud management tools and tools that supports process automation, innovation and help in reducing complexity,” says Infoholic, “while maintaining and automating governance and compliance policies.”
The revenue for hybrid management systems is projected to increase from $10.78 billion to $24.18 billion between 2016 and 2019. The market for these systems will have quadrupled in just six years, by 2022.
Where is this Model Growing Fastest?
The top three regions worldwide for hybrid cloud are as follows, in order: North America, Western Europe, and Asia-Pacific.
The adoption in North America should triple between 2016 and 2019, says Infoholic. Asia-Pacific is also growing at an incredible clip in this category, with 70% of businesses there planning to adopt hybrid by 2018.