Arguably, the first phase of cloud computing has been mainly about moving applications and their associated data into the cloud. Whether that involves merely invoking a software-as-a-service (SaaS) application or building a custom application that gets hosted on a public cloud, the business outcome is essentially the same. One way or another, the internal IT organization is getting out of the business of deploying and managing IT infrastructure.
That trend has been playing out to varying degrees for the past 10 years. What should be of paramount interest to IT service providers is what will happen in the next 10 years. Today what runs in the cloud is essentially a mirror image of applications that were once deployed on premise. Thanks to the rise of digital business initiatives coupled with advanced analytics, it’s only a matter of time before many of those applications start to converge.