1. Managed Application Services will become the New Path to Profitability for Today’s IaaS Providers
IT organizations are turning to cloud computing to provide more effectively sourced and consumed IT services for their business users and customers alike. Infrastructure-as-a-Service (IaaS) providers have proven to be the key enabler to this business trend and are now leveraging their infrastructure expertise to promote and host cost-effective managed application services. Many IaaS companies are building out their own DBaaS or are leaning on companies that offer the necessary building blocks to replicate proven DBaaS technologies. In either scenario, they are enabling their customers to operate that application and their database in the same geographical location and often in the same physical data center. This results in a better end user experience from an optimized application platform.
2. “Hybrid” will lead the way to broader DBaaS adoption
Whether driven by cost savings, operational efficiency, reduced administration, faster time to development or other business requirements, expect DBaaS adoption to experience strong gains in 2018. Gartner analysis shows DBaaS became the largest PaaS in 2016 and expects DBaaS revenue to double over the next five years at a 24.3% compound annual growth rate from 2017 through 2021. That’s 42% faster than overall public cloud growth. In 2018 – and beyond – a large majority of organizations will enlist hybrid approaches to DBaaS adoption in order to overcome barriers such as data locality, regulations and security concerns. We believe – as does 451 Research and others in the space that this move to hybrid databases services will accelerate the adoption of DBaaS. Solutions that can span on premises and public and private cloud environments will deliver a consistent experience as well as tools and managed services that make it easier to transition workloads to cloud databases and eliminate the need for costly and complex application and database moves.
3. Relational or Nonrelational Come Together
Whether looking for better ways to more easily scale data across servers or simply wanting to cache the reads to enhance queries, more organizations are using both relational and nonrelational database services to meet their organization’s requirements. In response expect more DBaaS providers to offer both options, allowing users to combine different services to address a spectrum of needs.
4. Security will remain a strong DBaaS concern in 2018
While most enterprises now believe that major cloud providers are more secure than their own IT systems, in 2018 security concerns will remain a barrier to DBaaS adoption. IT decision continue to express concerns for any data-driven workloads where data privacy and data sovereignty issues are in play – and liability is a related security concern with enterprises pushing for more contractual clarity for who is responsible if things do go wrong and what will the compensation be?