Ten trends redefining enterprise IT infrastructure  

28 November 2017:

When people think of enterprise IT infrastructure, they often imagine racks of hardware locked away in data centers and basements. But it is actually a focal point of disruption and innovation in every area, from servers and storage to networking and software.

What are the trends that are giving rise to such disruption and innovation? And what are the implications for business-technology strategy? Both IT infrastructure providers and customers must answer these questions as they plan their futures. We have identified ten trends that are already having a major impact on IT infrastructure and will bring even more disruption over the coming years. Here is a look at what is changing and how companies can respond.

Familiar trends at a faster pace and greater scale

The following trends will not be news to anyone, but their recent acceleration and the scale of their impact might come as a surprise.

1. ‘As-a-service’ consumption for everything from software to hardware. Enterprise buyers increasingly prefer consumption-based pricing models—a phenomenon that started with software and has now moved into hardware. This shift from capital expenditures to operational expenditures helps reduce risk, frees up capital, and provides increased flexibility. From 2015 through 2016, revenues for infrastructure as a service (IaaS) and platform as a service (PaaS) rose by 53 percent, making them the highest-growth segments in cloud and infrastructure services.1 Considering that a unit of compute/storage in the cloud can be up to 40 to 50 percent cheaper in total cost of ownership than a unit on premises, the shift to as-a-service models is striking. In addition to moving from on premise to cloud, IT providers and customers are experimenting with annuity-based payments for traditional hardware.

2. The public cloud goes mainstream. While companies have been moving their workloads to the public cloud for years, there has recently been a sea change at large enterprises. Capital One, GE, Netflix, Time Inc., and many others have drastically reduced or even eliminated their private data centers, moving their operations to the cloud.2 In fact, cloud providers are expected to account for about 80 percent of shipped server and storage capacity by 2018.

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Source: McKinsey

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