Video: More enterprise are going all-in with select cloud providers
Gartner said the fastest-growing segment of the market is cloud infrastructure as a service (IaaS), which it forecasts to grow 35.9 percent in 2018 to reach $40.8bn. The analyst firm said it expects the top 10 providers to account for nearly 70 percent of the IaaS market by 2021, up from 50 percent in 2016.Image: Gartner
These rise of these so-called 'hyperscale' IaaS providers, like Amazon Web Services (AWS), Google, and Microsoft creates "enormous opportunities and challenges" for customer and other vendors, said Sid Nag, research director at Gartner.
"While it enables efficiencies and cost benefits, organisations need to be cautious about IaaS providers potentially gaining unchecked influence over customers and the market," he said.
One opportunity of going all-in with one big cloud provider is that can be easier and (at least initially) cheaper to pick just one vendor (as ZDNet's Larry Dignan points out, this is the same model that many CIOs chose during the era of big enterprise software deployments).
But one challenge that could be looming is the issue of cloud lock-in: once companies have moved their applications and data onto one cloud platform, it's complicated and expensive for them to move away again.
Gartner said this will lead customers to demand easier