UPDATED 23:02 EDT / JUNE 01 2017

CLOUD

For developers of customer-facing apps, it’s cloud-native or bust

So-called “cloud-native” architectures will become the new default environment for customer-facing applications within the next four years, according to a new study by Capgemini SE.

The information technology consultancy interviewed more than 900 senior professionals in 11 countries for its comprehensive study, and found that around 15 percent of all new enterprise apps created today are cloud-native. However, that figure will jump to 32 percent by 2020.

Capgemini defines cloud-native apps as those that are composed of independent microservices. These apps are typically created and run on a platform as a service, in contrast to traditional applications, which are usually deployed as single entities. Some of the core features of cloud-native architecture include continuous delivery, microservices, containers and DevOps, the consultancy said in its report.

“This is an exciting shift in our industry,” said Franck Greverie, Capgemini’s Cloud and Cybersecurity Group leader. “We predict that cloud-native architectures will become the default option for customer-facing applications by 2020, driven by a need to continuously deploy innovations at an accelerated pace and enhance the customer experience. Businesses that delay adopting this approach will struggle to make up the gap with cloud-native competitors.”

Capgemini’s survey found that 74 percent of respondents believe the accelerating shift to cloud architectures comes from a desire to boost business agility, while 70 percent also cited increased collaboration.

business-improvement

One fact worth noting from the report is that organizations that have built more than 20 percent of their new enterprise applications as cloud-native say they expect to see an increase in business revenues far faster than late adopters.

The study also found that 69 percent of organizations that have embraced cloud-native applications described their approach to software development as “agile.” In addition, 78 percent of these companies also described their app deployment processes as being “automated.”

The same companies also show a more “growth-focused attitude” towards information technology functions, with 90 percent claiming that cloud-native helps to improve customer experiences, 87 percent saying it boosts business agility and scalability, and 79 percent viewing cloud-native adoption as a higher priority than reducing expenses.

cio-expectation

With adoption increasing, chief information officers at companies either using or planning to use cloud-native applications in the near future said they expect IT to become even more critical to supporting business goals. Some 67 percent of CIOs said they expect cloud-native to usher in the development of new business models, while 72 percent expect to see rapid scaling of their business, and 71 percent said they expect faster updating of products and services.

Still, it’s not going to be all easy sailing. CIOs admitted they’re facing challenges when it comes to making the business case for investing in cloud-native apps, as many enterprise executives see cost reduction as the main priority for their IT teams. Sixty-five percent of CIOs said they have to contend with an ingrained culture that’s opposed to cloud-native development, while 70 percent cite a shortage of skills in cloud-native app development. On the technical side, 62 percent of CIOs said they may face difficulties integrating cloud-native apps with existing legacy infrastructures, while 58 percent indicated concern about being locked into provider contracts.

cloud-native-challenges

Capgemini says it believes there’s an opportunity for CIOs to change attitudes by demonstrating the innovation that cloud-native app development will foster in businesses. However, it cautions that the benefits of DevOps and microservices might not be fully understood by some chief executive officers or other executives.

As such, some organizations that do shift to cloud-native could find themselves in the unique position of their business needing to catch up with their IT. Capgemini therefore recommends that CIOs must ensure business lines are ready to take advantage of the speed and flexibility that cloud-native can deliver.

Image: Chris Potter/Flickr

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