Cloud Data: Clear with Rain Predicted for On Premises Hardware
August 21, 2020
I like surveys which provides some information about sample size. “Survey: How the Pandemic Is Shaking Up the Network Market” says that 2,400 information technology decision makers participated. How were these individuals selected? How was the survey conducted? When was the survey conducted? are questions not answered. Nevertheless, some of the findings seemed interesting.
One of the surprising factoids was the shift from a license for a period of time to a “subscription.” How many outfits are subscribing to cloud services? The write up reports:
The average proportion of IT services consumed via subscription will accelerate by 38% in the next two years, from 34% of the total today to 46% in 2022, and the share of organizations that consume a majority (over 50%) of their IT solutions ‘as a service’ will increase by approximately 72% in that time.
Automatic monthly payments and probably tricky cancellation policies will be part of the subscription business, but that’s just a hunch, not a survey finding.
Other items of interest included these factoids:
77% [of those responding to the survey] said that investments in networking projects had been postponed or delayed since the onset of COVID-19, and 28% indicated that projects had been cancelled altogether.
35% of ITDMs globally are planning to increase their investment in AI-based networking technologies, with the APAC region leading the charge at 44% (including 60% of ITDMs [the acronym which few probably know means “IT decision-makers”] in India and 54% in Hong Kong).
just 8% [of the sample] globally plan to continue with only CapEx investments.
Net net: Pricing and curtailing capital expenditures may be trends. If these data are accurate, the data suggest that companies targeting on premises sales of hardware may face some headwinds. Of course, I believe everything I read on the Internet, particularly objective surveys.
Stephen E Arnold, August 21, 2020
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