4. CIOs will face increased pressure to shift spending to operating expenses
Pandey says that IT budgets will tighten, leading to a slowdown in investment in traditional technologies. This, in turn, will lead CIOs to shift even more of their spend to a consumption-based model.
"The days of overspending on traditional tools and equipment that have proven only partially effective will end," he says. "As an example, Netflix has abandoned the use of traditional anti-virus tools. For data center tools, CIOs will be compelled by lines of business to shift IT spending choices from capital budgets to operating budgets. The need for uniformity of application architectures in multi-cloud environments will influence IT purchasing decisions (since traditional hardware-based technologies are not portable). IT leaders will be forced to address the problem of underutilization of capital equipment that apply only in one environment, especially in businesses that utilize cloud computing."
5. Cyberattacks and data breaches in the cloud go from perception to reality
While enterprises have been suspicious about the security of their data in cloud environments from the beginning, there hasn't been much in the way of actual cloud data breaches. But that's going to change in 2016, Pandey says.
"The international working group on cloud resiliency monitors downtimes and security risks in the cloud," Pandey says. "So far, no major security breaches or significant availability challenges have affected the cloud. Yet security challenges are often cited as a reason that enterprises are hesitant to move their computing to the cloud. So far, these security concerns have primarily been driven by perception with data center security breaches far exceeding any such events in the cloud. However, as more and more businesses adopt the cloud and a greater share of confidential data and apps are put in the cloud by users, security challenges (DDoS or other cyberattacks), data loss and potential outages can increase."
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