One-Third of New Enterprise Apps to Be Cloud-Native by 2020

By: Jeff Bertolucci| - Leave a comment

The move to cloud-native is well underway. By 2020, nearly a third (32 percent) of new enterprise applications will originate in the cloud, more than doubling today’s percentage, according to a new Capgemini study. In addition to the increased speed the cloud provides, its superior agility and scalability empower companies to develop better apps for a rapidly changing market.

Capgemini’s report does note one significant caveat to this transition: The migration will only happen if business leaders — and employees — embrace it.

Defining Cloud-Native

These applications don’t just run in the cloud — they embrace its inherent scalability and anti-fragility. Thus, when apps experience stress and failure, the system actually becomes stronger over time. Because cloud-based development results in applications that scale and deploy rapidly, dev teams can add new features and respond to market changes quickly. A cloud environment also enables flexibility, including:

  • Microservices, which break code into modular chunks that scale independently.
  • Containers, which let organizations easily move units of code without damaging the ecosystem.
  • DevOps, an approach that provides continuous code delivery so that enterprises can implement microservices.

Cloud-native application platforms are becoming increasingly popular, as organizations are drawn by the cloud’s simplicity, scalability, portability and integration features.

Pioneers Moving Fast

Early adopters — primarily companies in technology, manufacturing and retail — are implementing a cloud-native approach to develop at least 20 percent of their new applications, the Capgemini survey found.

The benefits are tangible: In addition to enabling faster app development and deployment, the cloud also enhances the bottom line. In fact, 84 percent of early adopters say the approach has helped them increase revenue and lower operating costs, and 83 percent believe they’re ahead of their peers in terms of financial performance.

Facing the Challenges Ahead

Unsurprisingly, organizations making the transition face numerous obstacles, including legacy infrastructure and vendor lock-in, the study notes. However, the true challenges include a lack of cloud-based skill sets and a fixed company culture in which management and employees are unwilling to try new approaches.

When it comes to skills, outside assistance may be necessary. In fact, CIOs may find their organizations could use an external hand to kick-start the shift, as skill deficits within the company often constrain progress, the study notes.

For the new approach to gain traction, IT leaders must show a direct connection between cloud-native development and business innovation, flexibility, scalability and velocity. The report issues a somewhat dire warning to CIOs who don’t embrace these solutions.

“CIOs’ career prospects may hinge on their ability to achieve this,” the Capgemini researchers write. “As more organizations build their business models around services that are supported by software, those that do not embrace cloud-native will ultimately fall behind. And if that comes to pass, no executive’s job security can be assured.”

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About The Author

Jeff Bertolucci

News Writer

Jeff Bertolucci is a Los Angeles-based journalist specializing in technology, digital media, and education. His work has appeared in Kiplinger's Personal Finance, InformationWeek, PCWorld, Macworld, The Saturday Evening Post, The Los Angeles Times and many other publications.