UPDATED 00:55 EDT / APRIL 20 2016

NEWS

JP Morgan warns of “major ripple effect” as cloud adoption accelerates

JP Morgan analysts has weighed in with an ominous warning to legacy vendors that cloud giants like Amazon Web Services and Microsoft are set to dominate the enterprise infrastructure landscape in the coming years.

The fifty-page report, which was sent to clients last week and summed up by Barron’s Blog, states that “IBM, HP and Oracle are the top 3 most at-risk vendors for losing share of IT budget as the world shifts workloads to IaaS vendors”.

JP Morgan’s analysts quizzed 207 CIOs from enterprises with annual IT budgets exceeding $600 million, finding that they used words like “transformative power” to describe the impact of cloud providers like AWS on their infrastructure. One CIO even said that his company was planning to go “all-in” with AWS.

Of course, no one is saying the rise of public cloud isn’t unexpected. But JP Morgan believes that with just 16.2 percent of workloads currently running in the cloud, set to rise to 41.3 percent of workloads in just five years, the “near- tripling of the public-Cloud-based workload mix represents a monumental architectural shift, which shows no signs of abating and is likely to create a major ripple effect across the entire technology landscape.”

AWS and Microsoft were cited as the most “critical and indispensable” mega-vendors by 13 percent and 48.9 percent of CIOs, respectively. HPE meanwhile, was cited as the least critical vendor.

JP Morgan’s survey also tried to gauge the popularity of smaller vendors in the enterprise space. It showed that business intelligence solution providers like Tableau Software Inc. and Qlik International AB, security provider Palo Alto Networks Inc., virtualization giant VMware Inc., and cloud company ServiceNow Inc. were the top five smaller vendors that impressed CIOs the most, thanks to their “technology, vision and value-add”.

Image credit: Blanka/Pixabay

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