Cloud service providers

4 Trends That Have Molded & Shaped Cloud Service Providers in 2016

September 26, 2016


Don’t look now, but all of the predictions and hype for cloud service providers in 2017 is just around the corner. That makes now a great time to recap what the industry experienced during 2016. In a nutshell, the cloud has grown and matured considerably this year. If 2013 through 2015 were the toddler years for cloud computing, 2016 would be the cloud’s bar mitzvah. Here are the trends that played most prominently this year.

1. Security Ruled the Hearts & Minds of Cloud Service Providers

This trend is evident both inside and outside the cloud. All IT departments are facing security challenges that weren’t even a distant nightmare a few years ago. Hackers are well funded, exceptionally well trained, and have access to tools that are nothing short of impressively sophisticated. Whether you depend on a cloud service provider or an in-house IT team, security has dominated your thoughts, plans, and discussions throughout 2016. Don’t expect this to change next year.

2. Onshoring is the Name of the Game

For the past several years, offshoring has dominated the industry of cloud service providers. Due to a number of factors, the trend this year was reversing that migration offshore. Companies are turning to cloud service providers close to home. The driving factors behind this trend include stricter legislation over data security, concerns over differing laws and policies from nation to nation, and concerns over the latency sometimes experienced when working with cloud service providers long distances away. Sometimes cost also plays a factor in choosing local services.

3. Hybrid Cloud Infrastructures Become Less Complex

As companies work to find a balance between cloud service providers and on-premises data storage, the hybrid cloud has become the go-to choice for businesses. For the first few years, hybrid environments were notoriously complicated. Businesses had to determine the best use of the services offered by cloud providers, as well as the best use for on-premises solutions. This year, companies found that happy medium. Hybrid infrastructures are becoming less cumbersome, complex, and difficult to manage. Cloud service providers are offering solutions that help businesses find a place for everything when it comes to data storage and running applications. They’re figuring out which data and applications are safe and cozy in the cloud and which are best left onsite. Expect this trend to continue into 2017, as well.

4. Larger Businesses Find a Place for Cloud Service Providers

Before this year, enterprises had cloud plans, while small businesses had cloud providers. This year, enterprises began to invest more heavily in the cloud, for once following the lead of smaller businesses. Large companies see the agility, scalability, cost savings, support, and security the cloud has to offer, and they want to be more like these lean, mean startups and less like large, cumbersome, slow-moving bureaucracies. Expect the next couple of years to bring larger cloud investments from the big guys. These companies have had cloud plans for quite some time, but they will finally put their money where their mouth is and invest in the mature, valuable offerings of cloud service providers.

To keep closer tabs on the cloud service provider industry and make sure your small to mid-size business is on top of the latest trends and cloud advancements, download our cloud report today. Find out how cloud services can take your business to the next level.




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