Gartner estimates that worldwide public cloud services revenue will total to US$ 314.3 billion in 2019, up 17.5 percent from last year1.
Organizations are increasingly adopting cloud-first strategies, and this is understandable, given that the benefits of the cloud are plenty and hence, hard to ignore. Anytime access to data on the cloud, great agility and flexibility in data management, easy scalability of systems to keep pace with growing requirements and changing computing standards, quick maintenance and support – these are just some of the salient benefits that organizations enjoy when they transition to public cloud platforms.
Recent years have also witnessed substantial growth in the private cloud platform segment. Wikibon projects that the worldwide True Private Cloud (TPC) market will experience a compounded annual growth rate of 29.2 percent2. While private cloud does offer all the benefits of public cloud and more, it, unfortunately, comes at a cost with huge investments on hardware technology and lacks the scalability that public cloud offers of utilizing resources on-demand. Furthermore, organizations lack the bandwidth to onboard and maintain dedicated IT expertise that private cloud computing and maintenance demands. Building a platform-as-a-service (PaaS) model on-premise is both expensive and tedious.
In recent years, hybrid cloud computing offers a combination of public and private cloud advantages, allowing companies to host workloads on public and private cloud based on compliance and regulation requirements while leveraging agility and speed. However, it has been observed that there are plenty of large organizations who are unable to reap the full benefits of cloud computing due to stringent privacy, security and regulatory compliance and related governance issues. For instance, financial institutions and research organizations cannot take sensitive data and applications onto public cloud domain due to privacy and data protection issues. There are also latency and connectivity issues that hinder journey to the public cloud. Some other organizations are unwilling to place core functions outside of their corporate data center on external compute and storage assets. For yet others, there are varying customized and non-standard solution requirements that are difficult to support with the existing solutions available and using in-house expertise. However, all of these organizations need to scale and respond to dynamic digital transformation and cloud computing needs. They have a pressing requirement for increased flexibility to keep pace with an agile marketplace.
The paradigm of edge computing on the cloud
The answer lies in intelligent edge on Microsoft’s Azure Stack cloud solution. Sold as an integrated system of software solutions with validated on-premise hardware-in-a-box, Azure Stack provides a great on-premises cloud platform that includes all Azure cloud characteristics and offerings. It is an extension of Azure, offering the same codebase, allowing Microsoft to extend the learning, capabilities and features from Azure public cloud to private cloud.
Azure Stack is a seamless integration of the local enterprise data center and public cloud, enabling companies to capitalize on the benefits of both public and private cloud offerings.