ChannelLife Australia logo
Industry insider news for Australia's technology resellers
Story image

Gartner: 90% of organisations to adopt hybrid infrastructure by 2020

By Ashton Young
Wed 5 Apr 2017
FYI, this story is more than a year old

​Gartner recently released a report containing a series of predictions about IT infrastructure services.

There were three main predictions following the report – the first being that 90 percent of organisations will adopt hybrid infrastructure management capabilities by 2020.

"As the demand for agility and flexibility grows, organisations will shift toward more industrialized, less-tailored options," says DD Mishra, research director at Gartner.

"Organisations that adopt hybrid infrastructure will optimize costs and increase efficiency. However, it increases the complexity of selecting the right toolset to deliver end-to-end services in a multisourced environment."

Gartner asserts the traditional data center outsourcing (DCO) market is steadily shrinking, with the worldwide traditional DCO spending expected to decline from $55.1 billion in 2016 to $45.2 billion in 2020.

On the other side of the coin, cloud compute services are expected to skyrocket from $23.3 billion in 2016 to reach $68.4 billion in 2020.

Spending on colocation and hosting is also expected to increase, from $53.9 billion in 2016 to $74.5 billion in 2020, while infrastructure utility services (IUS) will grow from $21.3 billion in 2016 to $37 billion in 2020 and storage as a service will increase from $1.7 billion in 2016 to 2.7 billion in 2020.

According to Gartner, traditional worldwide DCO and IUS together made up for 49 percent of the $154 billion total data center services market in 2016, with the remaining percentage allocated to hosting and cloud infrastructure as a service (IaaS).

This is expected to tilt further towards cloud IaaS and hosting by 2020, with DCO/IUS worth only approximately 35 percent of the expected $228 billion worldwide data center services market.

"This means that by 2020 traditional services will coexist with a minority share alongside the industrialized and digitalized services," says Mishra.

Gartner’s second main prediction is that through 2020, data center and relevant “as a service” (aaS) pricing will continue to decline by at least 10 percent every year.

Pricing analysis of data center service offerings from 2008 through 2016 reveals prices have dropped yearly by 5-7 percent for large deals and 9-12 percent for smaller deals. Analysis of prices from 2012-present show similar to higher price drops.

Gartner says this will result in traditional DCO vendors exiting the DCO market because of price pressure, while others will develop solution capabilities and continue to compete.

And finally, Gartner asserts that by 2019, 90 percent of native cloud IaaS providers will be forced out of the market by the Amazon Web Services (AWS)-Microsoft duopoly.

The two behemoths have begun to corner the public cloud IaaS market over the last four years, and Gartner says they both grew their cloud service businesses significantly in 2016 while other players are sliding backward in comparison.

Between them, they not only have many times the compute power of all other players, but they are also investing in innovative service and pricing offerings that others cannot match.

"The competition between AWS and Azure in the IaaS market will benefit sourcing executives in the short to medium term but may be of concern in the longer term," says David Groombridge, research director at Gartner.

"Lack of substantial competition for two key providers could lead to an uncompetitive market. This could see organisations locked into one platform by dependence on proprietary capabilities and potentially exposed to substantial price increases."

Related stories
Top stories
Story image
Wireless
Cradlepoint expands its Cellular Intelligence capabilities
Cradlepoint has announced additional Cellular Intelligence capabilities with its NetCloud service.
Story image
Lightspeed
Lightspeed launches all-in-one marketing platform in A/NZ
ECommerce provider, Lightspeed has launched a new all-in-one marketing solution, Lightspeed Marketing & Loyalty in Australia and New Zealand.
Story image
Data solutions
South Australia state satellite makes significant progress
South Australia’s first state satellite has successfully completed the Critical Design Review (CDR), moving it closer to providing tangible data solutions.
Story image
Digital Transformation
How to modernise legacy apps without compromising security
At a time when digital transformation has become central to business, even the most important applications come with a ‘use-by’ date.
Story image
Telstra
Telstra and Silver Trak Digital delivers 5G to the cinemas
Telstra and Silver Trak Digital say they've launched Australia's fastest and most secure delivery of content over 5G for cinemas.
Story image
Review
Hands-on review: MSI MPG Z690 Carbon WIFI motherboard
It’s all change with Intel’s 12th generation CPUs. We have a new chipset in the 600-series, a new socket with the LGA 1700, and new DDR5 memory.
Story image
Phishing
KnowBe4 celebrates reaching 50,000 customers worldwide
KnowBe4 has reached the milestone of 50,000 customers, adding nearly 2,500 in the first quarter of 2022 alone.
Story image
SaaS
Atturra partners with Focus HQ to support Aus organisations
Atturra has executed a partnership agreement with Focus HQ, to resell and support the company's Australian developed SaaS-based portfolio management platform.
Story image
Artificial Intelligence
AI-based email security platform Abnormal Security valued at $4B
"A new breed of cybersecurity solutions that leverage AI is required to change the game and stop the rising threat of sophisticated and targeted email attacks."
Story image
Wasabi Technologies
Wasabi opens new cloud storage in Australia with Equinix
Wasabi Technologies has opened a new hot cloud storage region in Sydney, Australia, using Equinix services. This is the company's 12th global storage region.
Story image
Mobility
Hands-on review: STM laptop bags
The advent of hybrid working has meant we need laptop bags. We got our hands on two of the most popular laptop bags from STM.
Story image
Wireless
Hands-on review: Technics EAH-A800 Noise Cancelling Wireless Headphones
Designed in Osaka, Japan, these headphones just exude quality. They aren’t heavy, but they feel well built and solid.
Story image
Gaming
PNY launches XLR8 Gaming EPIX memory products in A/NZ
PNY has launched its XLR8 Gaming EPIC-X RGB™ DDR4 Silver 3200MHz and 3600MHz memory products in Australia and New Zealand.
Story image
Phishing
Google reveals new safety and security measures for users
Google's new measures include automatic two step verification, virtual cards and making it easier to remove contact information on Google Search results.
Story image
Manufacturing
HINDSITE wins Aerospace Xelerated Pitch Challenge with solution to support Boeing
Brisbane-based startup HINDSITE was the winner of the first ever Pitch Challenge organised by Aerospace Xelerated in partnership with Queensland XR Hub. 
Story image
VPN
Palo Alto Networks says ZTNA 1.0 not secure enough
Palo Alto Networks is urging the industry to move to Zero Trust Network Access 2.0 because previous versions have major gaps in security protection.
Story image
Adyen
Adyen expands partnership with Afterpay as BNPL payments increase
Adyen has expanded its partnership with AfterPay allowing more of Adyen’s merchants in more countries worldwide to use the BNPL provider.
Story image
Artificial Intelligence
Google to enter the smartwatch market with the Google Pixel Watch
Google has provided a first look at its new Google Pixel Watch, which is set to make an entry into the competitive smartwatch market.
Story image
Microsoft
SAS Viya on Microsoft Azure to deliver 204% return - study
The Forrester Total Economic Impact study finds SAS Viya on Microsoft Azure brings a 204% return on investment over three years.
Story image
Artificial Intelligence
ANU and Seeing Machines to use AI to improve driver safety
The Australian National University and Seeing Machines have won a grant to develop AI systems monitor human behaviour while driving.
Story image
Fortinet
Fortinet's Security Fabric hits new record for integrations
The Fortinet Security Fabric has surpassed 500 technology integrations with more than 300 Fabric-Ready Technology Alliance Partners.
Story image
PaaS
New digital traffic light system to tackle construction defects
Smarter Defects Management launches its PaaS digital system and says it will revolutionise managing defects in the construction industry.
Story image
Hawaiki Cable
BW Digital completes acquisition of Hawaiki Submarine Cable
BW Digital has completed its full acquisition of Hawaiki Submarine Cable, with all applicable regulatory filings and approvals now received.
Story image
Fintech
Airwallex launches new bank feed integration with NetSuite
Airwallex has launched a new bank feed integration with NetSuite, developed in partnership with NetSuite solution partner, Onlineone.
Story image
Workato
Workato unveils enhancements to enterprise automation platform
"The extra layer of protection with EKM, zero-logging, and hourly key rotation gives customers a lot more visibility and control over more sensitive data."
Story image
Corsair
Hands-on review: Corsair 32GB Vengeance 5200MHz DDR5 DRAM kit
Corsair’s Vengeance 5200MHz DDR5 DRAM offers PC users an entry-level upgrade to the new memory standard allowing them to get a little bit more out of their new Alder Lake CPUs.
Story image
Artificial Intelligence
SAS unveils AI experience to improve kids' batting abilities
SAS has created The Batting Lab, an interactive experience using AI, computer vision and IoT analytics to help kids improve their baseball and softball swings.
Story image
Tech job moves
Tech job moves - Datacom, Micro Focus, SnapLogic and VMware
We round up all job appointments from May 6-12, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Remote Working
How zero trust and SD-WANs can support productive remote working
The way people connect with applications and data has changed, users are remotely accessing resources that could be stored anywhere from a corporate data center to the cloud.
Story image
Ransomware
Cybersecurity starts with education
In 2021, 80% of Australian organisations responding to the Sophos State of Ransomware study reported being hit by ransomware. 
Story image
Testing
Google and CSIRO use AI to help protect the Great Barrier Reef
Google has partnered with CSIRO in Australia to implement AI solutions that help protect the Great Barrier Reef.
Story image
Ransomware
Ingram Micro Cloud adds Bitdefender solutions to marketplace
Ingram Micro Cloud has announced the expanded availability of Bitdefender solutions on the Ingram Micro Cloud Marketplace.
Story image
Sift
Sift shares crucial advice for preventing serious ATO breaches
Are you or your business struggling with Account Takeover Fraud (ATO)? One of the latest ebooks from Sift can provide readers with the tools and expertise to help launch them into the new era of account security.
Story image
Application Performance Monitoring / APM
Why SolarWinds Partners will have big wins in 2022
We summarise the key recent changes that the monitoring software vendor has made to accelerate its channel business.
Story image
Application Security
What are the DDoS attack trend predictions for 2022?
Mitigation and recovery are vital to ensuring brand reputation remains solid in the face of a Distributed Denial of Service (DDoS) attack and that business growth and innovation can continue.
Story image
Cybersecurity
The 'A-B-C' of effective application security
Software applications have been a key tool for businesses for decades, but the way they are designed and operated has changed during the past few years.
Story image
Telstra
Telstra, Google and Accenture launch 5G AR experience for AFL
Telstra, Google and Accenture are developing a new 5G powered augmented reality (AR) experience at Melbourne's Marvel Stadium for the footy season.
Story image
Apple
Apple previews new features for users with disabilities
Apple says new software features that offer users with disabilities new tools for navigation, health and communication, are set to come out later this year.
Story image
Artificial Intelligence
Updates from Google Workspace set to ease hybrid working troubles
Google Workspace has announced a variety of new features which will utilise Google AI capabilities to help make hybrid working situations more efficient and effective.
Story image
SAS
New SAS service overcomes subscription fatigue for media companies
SAS has launched SAS 360 Match which helps media companies move towards a AVOD model to generate revenue as subscribers cancel.
Story image
Alteryx
Decision Inc. Australia enters partnership with Alteryx
Independent data and analytics consultancy Decision Inc. Australia has partnered with automated analytics company Alteryx, expanding its offering to clients.
Story image
Microsoft
Microsoft unveils adaptive accessories for disability access
Microsoft is introducing an expansive Inclusive Tech Lab to give people with disabilities greater access to technology through new software features and adaptive accessories.
Story image
Wireless
Sony to bring new 1000X series WH-1000XM5 headphones to the market
Sony has announced the newest edition of its award-winning wireless headphones, with the 1000X series WH-1000XM5 noise-cancelling model.
Story image
Gaming
Mastercard users can now use rewards points in gaming
Mastercard has launched Mastercard Gamer Xchange (MGX), allowing APAC consumers to convert their rewards points into gaming currency.