Cloud computing’s momentum just won’t quit. There is compelling evidence that an increasing number of companies are moving more and more mission-critical workloads to the cloud, as market watchers report gains in every conceivable corner of the market, from cloud hosting services to cloud infrastructure sales.
But when it comes to showing that organizations are moving beyond using the cloud merely for testing and toward broadly managing business-critical systems in complex multi-cloud and hybrid environments, you should hear the latest from analyst Mary Johnston Turner’s recent IDC report.
In “Worldwide Cloud Systems Management Software Market Shares, 2015: Year of Continued Expansion,” Turner analyzes the revenue growth for tools that optimize and increase efficiencies of workloads in clouds. The report states that “worldwide spending on commercial cloud systems management software and SaaS solutions grew 24.6% and totaled $2.9 billion in 2015.”
Another bellwether view of customer adoption of cloud-based tools, perhaps, is the overall SaaS-based systems management software market, which is growing even faster! In a separate report, “Worldwide System Management SaaS Market Shares, 2015: The Year of Mainstream Adoption,” Turner, along with co-author David Laing, report that the global market for system management SaaS solutions “grew 40.1% in 2015 as organizations of all sizes became comfortable with SaaS options for an increasingly wider range of system management software activities.”
When you look at these two reports side by side, it’s easy to see that customers are moving and transitioning toward the modern, seeking new efficiencies and more visibility of their workloads in these complex, cloud-based environments.
Explaining the enterprise trend to cloud
Lee Atchison, principal cloud architect and advocate at New Relic, explains the transition in a recent blog post: Enterprises Take Many Paths to the Hybrid Cloud. Atchison, author of the new book Architecting for Scale, explains that many companies are undertaking multiple, simultaneous cloud migrations, for many different reasons and using a variety of approaches. Increasingly, a company will have some applications in the cloud, others in traditional data centers, and still others using various kinds of hybrid approaches. SaaS solutions are well positioned to monitor both the infrastructure and the apps, no matter where they are located.
These trends are reflected in the choices of many New Relic customers. For example, Diginomica recently reported on online rail-ticket vendor “Trainline’s journey of migration from Exadata to AWS.” The article notes that “as a result of the move from its current co-location home, the company calculates it will save around $1.7M annually on capital expenditure, without paying any extra operational costs.”
But companies like Trainline, Major League Baseball Advanced Media (MLBAM), Flightstats, Confused.com, and Zendesk are only a handful of the thousands of New Relic customers gaining confidence in cloud environments. IDC reports that New Relic attributes $64.9 million of its 2015 revenues to helping our customers monitor the health of their applications hosted in the cloud, up 200% from the previous year.
What enterprises want from the cloud
So what does it all mean?
On the one hand, it shows the cloud has matured to the point where enterprises trust it for their most important workloads. On the other hand, the consistent and strong growth of the systems management software categories shows that organizations see the need for accurate performance insight in these distributed and complex environments. Having enhanced visual dashboards and reporting, API-based integrations, and powerful analytics engines that are tailored for dynamic workloads is essential to ensure mature and insightful capabilities.
Want to learn more about cloud migration and monitoring applications across multi-cloud and hybrid environments? Read our informative e-book: The Many Paths to the Hybrid Cloud.