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Changing Tides: How Hybrid IT and the Cloud are Evolving

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IT Infrastructures Are Expanding and Changing

What’s Bringing On All the Infrastructure Changes?

A lot of evolution is taking place in the infrastructure world, and the data generated by The Peak 10 Hybrid IT Study: A Solid Business Case for Mixed Infrastructure makes it clear. But why?

Digital transformation is completely reshaping how business is done and the technology that enables it. Just a few things that have to change, reported by Dell EMC:

  • Business models and processes
  • Delivering services
  • The way employees are enabled to do their jobs
  • Products and services themselves

Pretty much all enterprises are going through this process to best align with the digital, technology-enabled cycle of doing business. IT will join the “as-a-Service” realm to allow organizations to be faster, more agile, and service-focused. Using hybrid strategies will be instrumental in this process, and it’s already impacting how IT environments are being configured.

How Infrastructures Are Expanding to Accommodate Increased Demands

Peak 10’s Hybrid IT study found that:

  • Most organizations plan to increase their cloud infrastructure. Cloud will be key to supporting digital initiatives.
  • Over 80% of businesses surveyed plan to maintain or increase their colocation environment.
  • Over 50% of businesses surveyed plan to maintain or increase their on-premise environments.

Everything is going digital, so naturally, the growth of data is explosive. Organizations have to be able to collect, store, and use data, so resource needs are much higher. At the same time, security needs are changing because data now travels between the cloud, the core, and the edge of infrastructure. Plus, time to value is expected to be compressed as much as possible. The growing demand for “more” and “fast” means that whatever infrastructure is chosen, it’s going to have to expand.

“For me personally, we’re not investing in on-prem. But, [we have] a ton of physical servers, so we’re not going to just throw them away. Unless you’re a small mom and pop shop or a startup, it’s cheaper to have your own equipment. If you care about performance, you can perform better on-prem.”

 –Peak 10 survey respondent

…And How They’re Changing to Fit Evolving Needs

Peak 10’s study also revealed that:

  • Within the next five years, it’s likely that cloud usage will grow from 23% of infrastructure up to 38%, while on-prem will decrease from 47% of infrastructure to 32%.
  • 75% of organizations surveyed are putting networking workloads on premise, and 53% indicate that networking workloads will drive increased usage of their on-premise infrastructure.
  • Leading applications moving to SaaS are CRM (55%), email (49%), and website hosting (47%).

But it’s not just MORE resources that are needed. It’s also different resources. In the next five years, the share of on-premise environments will gradually reduce, while the cloud footprint nearly doubles. Changes in the use of colocation are nearly flat—it may rise marginally. However, it’s worth noting that few IT decision makers feel they will ever be 100% cloud. Some workloads are required to be on-premise, but others need a level of security, compliance, or uptime they do not feel the cloud can deliver in the foreseeable future.

IT is operating in an age of incredibly swift innovation, and for businesses to keep up, they need to choose the best environments for the needs of their systems and applications. This is why hybrid IT is playing such an integral role in the infrastructure world, and various infrastructure types will be utilized not only with greater frequency, but in different capacities.

  • Cloud migration services will rapidly increase.
  • MSPs are being “replaced” by SaaS providers for certain workloads due to similar benefits. Email, collaboration, and web hosting have the most penetration in cloud.

What Infrastructure Evolution Means For You

Adjusting your IT strategy to keep pace with change is different for every business. Evaluating the systems and applications you already have in place, as well as those you’re planning to deploy, is a good place to start. It’s important to understand which assets will operate better within the infrastructures you’re choosing to utilize.

If there’s one thing the Peak 10 Hybrid IT Study revealed, it’s that there is a diverse range of business cases for selecting particular infrastructures types and consequently building out a hybrid IT strategy. To learn more about how the changing tides of IT infrastructure could impact your business, see The Peak 10 Hybrid IT Study: A Solid Business Case for Mixed Infrastructure or contact us at www.peak10.com/contact-us or (866) 473-2510 to speak with one of our experts today.

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About Peak 10

"Our values are the foundation for everything we do at Peak 10, and are ultimately what enable us to earn our customers' business and their trust."
David H. Jones,
Board Member, Peak 10 + ViaWest