By John Emmitt
Enterprises are overwhelmingly moving to the Cloud. As of last year (2015), the cloud market was about $121 billion dollars and was growing at a 26% annual rate! The market data shows that, by 2017, 50% of enterprises will be using Hybrid Cloud. (Hybrid Cloud is the combination of Public and Private Cloud models. Aren’t you glad we cleared that up?)
Figure 1: Cloud Market Size and Growth
And, the Infrastructure as a Service (IaaS) market is expected to grow at 15% annually through 2019. Amazon Web Services (AWS) is the current market leader with 30% of the IaaS market. Microsoft Azure and others are coming on strong, however.
Figure 2: Infrastructure as a Service (IaaS) Market Growth and Amazon Web Services Market Share
What does all of this have to do with Software Asset Management and License Optimization, you might ask? Plenty! First of all, Gartner published a report earlier this year— Software Asset Management Is Now a C-Level Imperative, which recommended that IT leaders must broaden the scope of Software Asset Management to include management of cloud infrastructure (IaaS) and Software as a Service (SaaS).
Secondly, the move to cloud infrastructure services also typically means that you are moving some of your on-premises software to the cloud, in which case, you still need to manage license compliance for that software. (See this previous blog on the topic: Cloud and SaaS make my software license management problems go away. Right?)
The ease of purchasing cloud services has been one of the reasons why “shadow IT” has started to be a big problem for some organizations. Departments and users can go around the IT and Procurement departments to purchase these services.
Check out our new video—Beware of the Dark Cloud of Shadow IT:
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