- Migration to service-based IT is one of the significant elements of digital transformation initiatives for achieving business goals, pursuing new opportunities, and enhancing customer experience.
- Enterprises have an opportunity to bring all of what they like about public cloud to their own premises while mitigating restrictions and concerns they have with moving infrastructure off-premises.
IDC estimates that the worldwide annual recurring revenues (ARR) from dedicated (local) cloud infrastructure-as-a-service (IaaS) offering for compute and storage will increase from $138 million in 2020 to $14 billion in 2025 with a compound annual growth rate of 151.8 per cent.
Dedicated (local) Cloud Infrastructure-as-a-Service (DCIaaS) solutions deliver compute and/or storage resources dedicated to an individual customer that are deployed on customer premises and consumed as a service.
This model is essentially a dedicated version of a publicly available cloud offering, modified to run on-premises or in a specially certified colocation environment, including outside of a traditional datacentre environment (edge).
The cloud service provider retains full ownership of all underlying infrastructure hardware and software and is completely responsible for delivery, maintenance, updating, and ultimate disposal of the asset when the subscription is terminated.
The dedicated (local) cloud infrastructure-as-a-service solutions will be consumed by both enterprise customers and by hosted service providers, which use infrastructure for delivering cloud service to their customers.
Digital transformation
Given the importance of hybrid cloud, players like Microsoft, Google, AWS and Oracle all have hybrid cloud offerings with Azure Stack, Google Anthos, AWS Outpost and Cloud@Customer respectively. These solutions basically take public cloud services and extend these into on-premises datacentres.
Digital transformation (DX) is one of the trends shaping the enterprise world and driving the investments organisations are making to modernise their IT infrastructures and processes.
Migration to service-based IT is one of the significant elements of DX initiatives as it enables organisations to utilise IT more efficiently for achieving business goals, pursuing new opportunities, and enhancing customer experience.
Until recently, service-based IT was largely associated with public cloud services. However, in the past 18 months, a number of system vendors and cloud service providers have introduced a new class of offerings that are designed to bring cloud experience to enterprise premises.
Natalya Yezhikova, research Vice-President for IT Infrastructure practice at IDC, said that increasing demand for service-based consumption of IT resources triggered a broad move within the system vendor community to introduce a variety of offerings to fulfil this demand
“With dedicated cloud as-a-service solutions, enterprises have an opportunity to bring all of what they like about public cloud to their own premises while mitigating restrictions and concerns they have with moving infrastructure off-premises,” she said.