Gartner analyst predicts doom for on-premises data centers

Enterprise software’s days are numbered, and if you don’t adopt artificial intelligence (AI) and machine learning, your data center will be useless.

Those are the claims of Gartner Research Vice President Milind Govekar, who gave a presentation at Gartner’s annual conference for IT infrastructure operations professionals recently in Las Vegas.

Govekar said that as soon as 2019, at least a third of the largest software vendors will have transitioned their products from cloud-first to cloud-only. Although he didn’t mention it by name, you have to think Microsoft is in that category because it is already cloud-first with its enterprise apps. Office 365 already outsells the packaged Office 2016, so I can see a major de-emphasis of the client product in the coming years.

However, this move will be more of a win for the SaaS providers than customers. SaaS prices have risen about 8 percent in the last three years, Govekar said, who also warned that SaaS vendors such as Salesforce, Oracle and SAP are engaging in a “lock-in strategy” not unlike what enterprise software vendors used to do, integrating their products so deeply that moving or switching is prohibitively difficult.

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