Predictions 2020: Cloud becomes critical infrastructure
Cloud Predictions 2020
The concentration risks of public cloud services infrastructure will become a public policy issue, leading to increased regulatory oversight of large cloud services providers.
- Continuing growth of public cloud services
- Rapid adoption of cloud applications – software as a service (SaaS) – from vendors who in turn rely on infrastructure as a service (IaaS)
- Concentration of cloud infrastructure with AWS and Microsoft
The recent award of a mammoth $10 billion DOD contract to Microsoft for cloud infrastructure services has raised the awareness on Capitol Hill of concentration risks.
Before cloud computing, IT infrastructure was much more diffuse, but in 2019, just two cloud providers, Amazon and Microsoft, control 69% of the public cloud market, and by the end of 2020, their markets shares will total 75% as the overall market continues to grow.
Furthermore, the third largest provider is Chinese firm Alibaba, raising national security concerns.
Congressional concerns over the risks of concentrating so much IT infrastructure with just two major providers, and the specter of China as the leading alternative, could lead to designation of large cloud service providers as critical infrastructure and increased regulatory oversight.