The Commodification of Cloud

F5 Ecosystem | July 19, 2022


Every industry and technology go through the same cycle. What is new becomes standard, and what is standard becomes commodified. What is commodified often becomes the foundation for a new cycle of innovation, and the hype cycle begins anew.

When cloud computing burst on the scene, its arrival was heralded as game changing. Public cloud had the potential to drive down the cost and time to deliver applications by replacing manual operations with a more automated approach and eliminating the investment in hardware. To be fair to public cloud, it did exactly what it promised. It drove down the cost—and time—to deliver applications and continues to do so today.

It has fueled a new generation of cloud-based services that span the gamut from software to platforms to security and delivery. Cloud’s introduction of differentiated services (load balancing, security, acceleration, identity, etc.) was the first indication that cloud was entering a stage of standardization, as the value was no longer in the compute, but in the app security and delivery services one could access with ease. Now we see the industry shifting toward those same services offered as competing products delivered via cloud-based platforms. The hype cycle for a new iteration of cloud—XaaS—is on the rise.

Because cloud taught the entire industry how to operate infrastructure and applications more efficiently.

Look under the hood of any XaaS provider today and you’ll almost certainly find a cloud-based infrastructure. The scale and speed of the cloud model is undeniable, and the benefits was seen in the ability of SaaS and XaaS to ramp up to meet unprecedented demand during the global pandemic.

And it was Google, ten years ago, that introduced the practice of Site Reliability Engineering (SRE) as a better way—a cloud-like way—to manage and operate fast, scalable, and secure infrastructure and applications. Today, our annual research shows that 77% of organizations across industries have adopted or plan to adopt the approach, and nearly every company operates in multiple public cloud environments. The lower cost, greater efficiency, and speed of delivery offered by public cloud is no longer restricted to public cloud. The commodification of cloud is complete.

Public cloud is in no danger of losing relevance. Public cloud is a part of nearly every organization’s strategy, and there are no signs that will change in the near future. Every “state of cloud” report notes that adoption is rising, especially across the SMB market. What is changing is the organization's approach to the use of application security and delivery services to secure and scale applications—in the cloud and on-premises.

The shift toward XaaS and the edge is real and accelerating. The security-as-a-service market, in particular, is booming and there is an explosive amount of activity in cloud-based observability and automation platform services. Edge platforms—almost universally architected on a cloud-based model—are rising fast to enable demand to deploy data-processing and digital experience application workloads as close to their consumers as possible.

Public cloud is now a commodity, but its impact is far from over and the innovation cycle it has enabled is just beginning.

Share

About the Author

Related Blog Posts

At the Intersection of Operational Data and Generative AI
F5 Ecosystem | 10/22/2024

At the Intersection of Operational Data and Generative AI

Help your organization understand the impact of generative AI (GenAI) on its operational data practices, and learn how to better align GenAI technology adoption timelines with existing budgets, practices, and cultures.

Using AI for IT Automation Security
F5 Ecosystem | 12/19/2022

Using AI for IT Automation Security

Learn how artificial intelligence and machine learning aid in mitigating cybersecurity threats to your IT automation processes.

The Commodification of Cloud
F5 Ecosystem | 07/19/2022

The Commodification of Cloud

Public cloud is no longer the bright new shiny toy, but it paved the way for XaaS, Edge, and a new cycle of innovation.

Most Exciting Tech Trend in 2022: IT/OT Convergence
F5 Ecosystem | 02/24/2022

Most Exciting Tech Trend in 2022: IT/OT Convergence

The line between operation and digital systems continues to blur as homes and businesses increase their reliance on connected devices, accelerating the convergence of IT and OT. While this trend of integration brings excitement, it also presents its own challenges and concerns to be considered.

Adaptive Applications are Data-Driven
F5 Ecosystem | 10/05/2020

Adaptive Applications are Data-Driven

There's a big difference between knowing something's wrong and knowing what to do about it. Only after monitoring the right elements can we discern the health of a user experience, deriving from the analysis of those measurements the relationships and patterns that can be inferred. Ultimately, the automation that will give rise to truly adaptive applications is based on measurements and our understanding of them.

Inserting App Services into Shifting App Architectures
F5 Ecosystem | 12/23/2019

Inserting App Services into Shifting App Architectures

Application architectures have evolved several times since the early days of computing, and it is no longer optimal to rely solely on a single, known data path to insert application services. Furthermore, because many of the emerging data paths are not as suitable for a proxy-based platform, we must look to the other potential points of insertion possible to scale and secure modern applications.

Deliver and Secure Every App
F5 application delivery and security solutions are built to ensure that every app and API deployed anywhere is fast, available, and secure. Learn how we can partner to deliver exceptional experiences every time.
Connect With Us