Infrastructure and Platform as a Service (IaaS and PaaS) will continue to be the strongest growing IT services offerings in 2019, growing 20% and 22% respectively (see my Figure). However I expect to see increasing challenges for their suppliers in the year. In particular:
- Investment costs will increase as suppliers build more data centers in their expansion into new countries and regions and as new processor chips from Intel, AMD and others reduce the cost advantages of their older ones.
- New nationalism and cultural reticence to use foreign data resources will increase.
- Business plans for new suppliers will be restricted by national and region uncertainties and legislation.
- The fall in stock market valuations of leading hyperscalers at the end of 2019 demonstrates investor nervousness in a market that has given them strong returns since its inception.
Cloud computing in 2019 will no longer be so special and I expect to see an increase in ‘cloud washing’ – criticism by users and analysts that it has failed to live up to its (previously unlimited) potential. A few suppliers may even become ‘over-hyperscalers’!
Navigate our predictions – intro 1 2 3 4 5 6 7 8 9 10
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