7 reasons mid-size tech companies should reconsider going all-in on public cloud


AWS primarily and Azure, of late, dominate today’s discussions around storage, backup and compute power. A quick glance at headlines from technology journalists, and a reader can glean a common coverage theme that ties these writers together — the ongoing discussion around the benefits of going all-in on the public cloud. However, in most cases technology journalists are writing about larger corporations, or big name installations, which may or may not reflect the actual trends taking place in the marketplace, especially at mid-size companies and organizations experiencing a growth spurt.

As one who is regularly engaged with the CIOs at mid-size and smaller companies and organizations, I don’t see them going all-in on the cloud right now; rather some are pulling back from it and either opting a hybrid cloud solution, or are going all-in with on-prem backup solutions. In fact, according to a survey published by SMB analyst firm Techaisle LLS, the hybrid cloud is now being used by 32 percent of midmarket (100 to 999 employees) organizations, and that figure is expected to remain relatively flat at 31 percent into next year, in spite of what your read in the press about AWS or Azure penetration.

In addition, hybrid cloud spending is predicted to grow 22.5 percent annually through 2021 to reach almost $92 billion. According to analyst firm IDC, spending on traditional on-premises IT infrastructure will remain larger than cloud spending over the next two years. Although, in aggregate, IDC expected that 32 percent of IT infrastructure budgets will go to external clouds and almost 11 percent to private cloud. The hybrid setup is currently the most preferred model among cloud users too; a popular 2016 survey from RightScale showed that 71 percent of cloud users operate a hybrid environment.

This trend has not gone unnoticed at Microsoft, which just announced the unveiling of its Azure Container Instances; a platform that makes it much easier for mid-size companies and organizations to get up and running with containers, effectively bridging the gap to a hybrid model that is both powerful, cost effective and easy to implement.

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