In October of 2018, tech giant IBM agreed to acquire Red Hat for a $34 billion. With Red Hat, IBM will be able to become the largest hybrid cloud provider, making known their prioritization of cloud-based technologies.
When an enterprise like IBM makes a $34 billion investment in the cloud, it really sends a signal. That’s why we believe in 2019, we’re going to see IT teams of all shapes and sizes follow suit.
CIOs and Enterprise IT Teams Move Toward Cloud-Based eCommerce
Most traditional or legacy eCommerce platforms are hosted on-premise. This means that they are installed locally on a company’s hardware system and managed by the IT staff. They typically involve larger upfront investments to purchase the infrastructure, servers, facilities, software and software licenses. Ongoing costs can include hardware maintenance, data storage, security, backups, power and cooling, and software upgrades.
On-premise, legacy technologies have created one of the biggest barriers to effective IT: friction in the system. Configuration and operation are different, error-prone and resource intensive. It takes weeks or months to identify and allocate necessary resources for projects.
On the other hand, cloud-based eCommerce platforms eliminate unwanted friction.
With cloud technology, the vendor hosts and manages the software and customers’ associated data in the cloud. The vendor also maintains the IT infrastructure and is responsible for all data security, upgrades, bug fixes, new feature development, and ongoing support and maintenance. Initial costs are typically much lower because it’s built into a subscription that you pay over time. Cloud-based eCommerce platforms allow your IT staff to focus on strategic initiatives and innovation, instead of maintenance of on-premise systems and services.
As we enter 2019, it’s clear that the cloud has (finally) come of age, and IT executives are pushing their organizations toward the cloud.
According to recent research conducted by IDG on cloud-computing:
- 90% of companies will have some part of their applications or infrastructure in the cloud by 2019, and the rest expect to follow by 2021.
- 77% of enterprises already have at least one application or a portion of their enterprise computing infrastructure in the cloud.
- Enterprises predict they’ll invest an average of $3.5million on cloud applications, platforms, and services this year.
- More than a third (38%) of IT departments are under pressure to migrate all applications and infrastructure to the cloud.
Today, more than ever, companies value digital innovation and evolution. IT leaders understand that investment in the cloud will improve their IT service delivery speed. It will also provide greater flexibility to react to changing market conditions and adapt to new and emerging technologies.
Bernard Golden, Vice President of Cloud Strategy at Capital One, said it best:
“I believe our economy will see more disruption in the next decade than occurred in the entire twentieth century. Every person will need to decide where he or she wants to experience that disruption: within a company surfing the cloud-native wave or one being inundated by it.”
In 2019 organizations will no longer question whether they should move to the cloud, but instead how best to leverage the new generation of cloud services.
It’s trends like cloud-based eCommerce that influenced our predictions for B2B eCommerce in 2019. If you’re curious as to what’s ahead, download your own copy.