Public Cloud

Predictions 2020: Cloud becomes critical infrastructure

December 17, 2019By 6 CommentsReading time: 5 Minutes

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.

Leading indicators

  • 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

Cloud Trends

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.

French Caldwell

French has been a naval officer and nuclear submariner, a diplomatic liaison to NATO for a congressional commission, a consultant with clients that included the Central Intelligence Agency and Department of Defense, a Gartner Fellow and analyst, and an executive on the leadership team at a Silicon Valley tech company. He has published a book and over 400 articles — most of those through Gartner, but also in the Financial Times, several newspapers and magazines, academic journals, and national security publications.French's passions include strategy, risk management and compliance, disruptive technology and public policy, sailing, hiking and backpacking, and his family.

Resources

DOD
Disruptive trends and technology

DOD Cloud Strategy: CIO Multicloud Recommendations from JEDI and CIA

Disclosure

The views and opinions in this analysis are my own and do not represent positions or opinions of The Analyst Syndicate. Read more on the Disclosure Policy.

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