As cloud computing becomes increasingly indispensable for modern enterprises, alternative cloud platforms are gaining traction, offering a viable option for those seeking more economical and user-friendly solutions. This trend is supported by a shift towards multicloud strategies, where businesses utilize multiple cloud services to optimize performance and cost efficiency.
Growth and Drivers
In 2024, all segments of the cloud market are expected to see growth, with Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) leading the way. IaaS is forecasted to experience the highest end-user spending growth at 26.6%, followed by PaaS at 21.5% (Gartner). This growth is part of a broader trend where cloud services are increasingly shaped by specific business outcomes rather than purely technological advancements.
The rise of alternative cloud platforms is driven by several factors. Small and medium businesses (SMBs) and independent developers initially adopted these platforms due to their cost-effectiveness. However, a growing number of larger enterprises are now recognizing the advantages of alternative clouds in multicloud deployments. These platforms are particularly appealing due to their straightforward pricing, ease of use, and the trustworthiness they offer compared to traditional cloud giants, which have faced criticism for practices such as aggressive upselling and questionable ethics (TFiR).
Advantages of Alternative Clouds
Alternative cloud platforms differentiate themselves by focusing on simplicity and customer-centric features. They often offer more predictable billing, lower costs, and support structures that are perceived as more hands-on compared to the larger, more established cloud providers. These platforms also tend to leverage open source technologies, which reduces the barriers to entry for users and fosters a broader skill set among IT professionals, thereby addressing the industry-wide cloud skills gap (Akamai) (TFiR).
Looking Ahead
The continued evolution of cloud technology, including the adoption of generative AI (GenAI) and industry-specific cloud solutions, suggests that the role of alternative cloud providers will expand. These providers are well-positioned to offer tailored solutions that support unique industry needs, which can make them crucial partners in the strategic deployment of next-generation technologies (Gartner).
As the landscape of cloud computing continues to diversify, the appeal of alternative cloud platforms is likely to grow, providing businesses with more choices for achieving their digital transformation goals in an economically and strategically advantageous manner.