{"id":36442,"date":"2018-10-05T11:15:43","date_gmt":"2018-10-05T11:15:43","guid":{"rendered":"https:\/\/www.cloudcomputing-news.net\/news\/2018\/oct\/05\/look-beyond-2019-ai-blockchain-and-quantum-and-what-means-cloud-behemoths\/"},"modified":"2018-10-05T11:15:43","modified_gmt":"2018-10-05T11:15:43","slug":"a-look-beyond-2019-ai-blockchain-and-quantum-and-what-this-means-for-the-cloud-behemoths","status":"publish","type":"post","link":"https:\/\/icloud.pe\/blog\/a-look-beyond-2019-ai-blockchain-and-quantum-and-what-this-means-for-the-cloud-behemoths\/","title":{"rendered":"A look beyond 2019: AI, blockchain and quantum \u2013 and what this means for the cloud behemoths"},"content":{"rendered":"<p><img decoding=\"async\" src=\"http:\/\/www.cloudcomputing-news.net\/media\/img\/news\/business-man-in-suit-with-cityscape-montage-picture-id488536442.jpg\"><\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">As technology changes, the roles the key actors play changes with it. The feted Institute of Engineering and Technology hosted analysts from CCS Insight, who gave wide-ranging predictions on the state of the enterprise technology ecosystem &#8211; with the biggest cloud players featuring heavily in future trends.<\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">The yearly jamboree has taken on something of a life of its own, with press headlines regularly questioning some of the more outlandish claims the company has made &#8211; only for CCS to be more often than not proved right. CEO Shaun Collins, who insisted his opening speech was not just a &#39;greatest hits&#39; package, went through the reel, including Three making a move for O2 &ndash; later ruled out by the European Commission &ndash; and Google acquiring Motorola.<\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">This time around, for enterprise heads, there was plenty of focus on both the emerging technologies generating buzzword bingo cards and the largest companies with a strangehold on the ecosystem. These companies are defined by CCS as the &#39;agenda setters&#39;, with eight members in total; from the West, Alphabet, Apple, Facebook and Microsoft; from the East, Alibaba and Tencent; and in a category of its own, SoftBank, considering its continued spending spree on emerging players.<\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">Martin Garner, senior vice president, spent the first half of his session grappling with the catch-all term &#39;digital transformation&#39;. What does it actually mean? What results are coming from it? It would appear those pushing the term to its utmost don&#39;t really know themselves. Garner emailed Microsoft asking for a flavour on what benefits customers were getting. Microsoft&#39;s PR team responded a week later saying they had no numbers they could share.<\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">With this in mind, Garner guesstimated. If 10% of companies were involved in digital transformation initiatives, then there would need to be a 10% efficiency gain to make an official dent &#8211; something measureable in the economy. The problem is, we&#39;re a little way off that.<\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">Enter, stage left, three heroic figures; artificial intelligence, blockchain, and the Internet of Things. As this publication <a href=\"https:\/\/www.cloudcomputing-news.net\/news\/2018\/feb\/16\/how-cloud-computing-ai-and-iot-will-transform-semiconductor-companies-revenues-2018\/\" style=\"color:#0563c1; text-decoration:underline\">has variously noted<\/a>, seeing these technologies outside of their silos will unlock various insights. This was therefore the first prediction CCS put out: <strong>AI, blockchain and IoT will become highly interdependent technologies by 2021<\/strong>. &quot;The industry tends to talk about it all independently, but we believe this misses the bigger picture,&quot; said Geoff Blaber, VP research Americas.<\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">AI will be the core to understanding insights from data and releasing its value, while blockchain will help establish trust and security. But there is another, more unsung hero. &quot;Connectivity is the big piece here,&quot; said Blaber,&quot; that ensures you can move that data as intelligently and as seamlessly as possible.&quot;<\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\"><img decoding=\"async\" alt=\"\" src=\"https:\/\/www.cloudcomputing-news.net\/media\/uploads\/James\/2018\/10\/05\/aiblockchainiotccs.jpg\" style=\"height:100%; object-fit:contain; width:100%\" \/><\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">Blockchain was a particularly interesting touchpoint. &quot;There is ridiculous, ridiculous levels of hype around blockchain,&quot; said Blaber, &quot;but that doesn&#39;t mean it doesn&#39;t have significant value.&quot; Take Walmart and mangoes as an example. Thanks to a China-based partnership announced last December, the retail giant has taken the process of getting all stakeholders aligned &ndash; from farm to factory to supplier &ndash; down from seven days to just over two seconds.<\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">Cloud and blockchain will certainly combine &#8211; in terms of the hypervendors, that is<strong>. All major cloud service providers deploy blockchain commercially by the end of 2019<\/strong>, the analyst firm predicted. It&#39;s interesting to note here how reticent Amazon Web Services (AWS) was to initially make its move. At last November&rsquo;s re:Invent many announcements were made &ndash; but blockchain was not one of them. The company would only say it was &lsquo;intrigued&rsquo; by what its customers would do there. Six months after, <a href=\"https:\/\/www.cloudcomputing-news.net\/news\/2018\/apr\/26\/aws-launches-blockchain-service-six-months-after-saying-it-wasnt-interested-technology\/\" style=\"color:#0563c1; text-decoration:underline\">AWS launched<\/a> blockchain network templates. &nbsp;&nbsp;<\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">Lots of services are being punted out to test the water &#8211; but the next 12 months, CCS argued, will see major releases. &quot;Blockchain is essentially relevant to any industry or any transaction that needs to be securely documented,&quot; added Blaber.<\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">That was not the most eye-catching potential change however &#8211; although it must be noted the upcoming remains only potential. Nick McQuire, VP enterprise at CCS Insight, had the arguably unenviable task of explaining quantum computing;&nbsp;as he put it, one of the most difficult things that humans have ever attempted. Put simply, quantum is a significant improvement on classical computing. It is not so much computing in 0s and 1s, but more &#39;stateless&rsquo;, sub-atomic particles existing &ndash; albeit very briefly and inconsistently in this context today &ndash; in more than one state.<\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">Here&#39;s the double-take. Classical computers would take one billion years to break encryptions such as RSA. According to Microsoft, with a product they are looking to put together in 2019, it could be broken in 100 seconds.<\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">&quot;It&#39;s no longer in the exclusive realm of crap science fiction films,&quot; joked McQuire as a slide of Quantum Leap came up &#8211; which he admitted seemed a little harsh on the film. &quot;Quantum is going to being quite a number of significant security concerns into the security ecosystem overall &#8211; encryption is going to be strengthened to defend against attacks from quantum computers.<\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">&quot;Those that are interested in cloud are going to differentiate themselves around quantum,&quot; McQuire added. &quot;The size of customer workloads is doubling every year as more and more organisatons go to cloud &#8211; it&#39;s a tremendous strain on the resource that is there, particularly silicon. We think quantum over time is going to solve a lot of this strain.&quot;<\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">When it came to artificial intelligence, CCS argued the big cloud vendors would again be a part of the action. <strong>By 2020, <\/strong>the company&nbsp;predicted<strong>, cloud service providers would expand from general purpose AI to business-specific applications.<\/strong><\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">Putting products together around voice, chatbots, video, and so forth, McQuire argued, is all well and good &#8211; but what do industries really want? Yes, the call centre is where we&#39;ve seen things happen, but what about predictive maintenance in manufacturing, fraud detection in finance, and demand forecasting and dynamic pricing in retail? The agenda setters will put together pre-built products to address these challenges, he added.<\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">Underpinning the vast majority of this is the concept of trust. The overriding theme of the sessions was around steering the data-driven economy, but of course not all data is created equal as Facebook found out after the Cambridge Analytica scandal &#8211; a topic oft-referenced by the analysts.<\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">This formed the basis of another prediction: <strong>trust would be the most important source of competition among cloud service providers in 2019.<\/strong> The example given was around Walmart&#39;s beef with AWS, covered in chapter and verse by this publication. Earlier this year, to the surprise of not many, the retail giant went all-in with Microsoft.<\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">&quot;The likes of Amazon, Alibaba, Facebook, Google and Microsoft recognise the importance of winning customers&#39; trust to set them apart from rivals, prompting a focus on greater transparency, compliance efforts and above all investment in security,&quot; the company wrote.<\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">So back to the agenda setters. This is the agenda they should be setting, but may they be usurped? McQuire sounded a cautionary note with his closing analysis &#8211; and it is to the East we turn.<\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">China&#39;s relationship with Tencent in terms of its citizen services has caused eyebrows to be raised &#8211; not least with the bombshell story around <a href=\"https:\/\/www.bloomberg.com\/news\/features\/2018-10-04\/the-big-hack-how-china-used-a-tiny-chip-to-infiltrate-america-s-top-companies\" style=\"color:#0563c1; text-decoration:underline\">&#39;spy chips&#39;<\/a> being inserted into Chinese business computers comprehensively dismissed by <a href=\"https:\/\/www.apple.com\/newsroom\/2018\/10\/what-businessweek-got-wrong-about-apple\/\" style=\"color:#0563c1; text-decoration:underline\">Apple<\/a> and <a href=\"https:\/\/aws.amazon.com\/de\/blogs\/security\/setting-the-record-straight-on-bloomberg-businessweeks-erroneous-article\/\" style=\"color:#0563c1; text-decoration:underline\">Amazon<\/a>. But the link between technology and government is one to look at. &quot;What we&#39;re starting to see from those geographies is very significant long-term planning and billions of investment in the very technologies the agenda setters are competing on,&quot; said McQuire.<\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\">&quot;In 12 to 18 months, it may not just be the companies themselves disruptive to this community, but governments themselves. It may just mean there is an arms race emerging at a national level.&quot;<\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\"><em>Do you agree with these CCS Insight predictions? Let us know in the comments.<\/em><\/p>\n<p style=\"margin-left:0cm; margin-right:0cm\"><a href=\"https:\/\/www.iottechexpo.com\/\" style=\"color:#0563c1; text-decoration:underline\"><strong><span style=\"color:blue\"><img decoding=\"async\" alt=\"https:\/\/www.iottechexpo.com\/northamerica\/wp-content\/uploads\/2018\/09\/all-events-dark-text.png\" src=\"https:\/\/www.iottechexpo.com\/northamerica\/wp-content\/uploads\/2018\/09\/all-events-dark-text.png\" style=\"height:88px; width:294px\" \/><\/span><\/strong><\/a><strong>Interested in hearing industry leaders discuss subjects like this and sharing their use-cases?<\/strong> Attend the co-located <a href=\"https:\/\/www.iottechexpo.com\/\" style=\"color:#0563c1; text-decoration:underline\">IoT Tech Expo<\/a>, <a href=\"http:\/\/blockchain-expo.com\/\" style=\"color:#0563c1; text-decoration:underline\">Blockchain Expo<\/a>, <a href=\"https:\/\/www.ai-expo.net\/\" style=\"color:#0563c1; text-decoration:underline\">AI &amp; Big Data Expo<\/a> and <a href=\"https:\/\/www.cybersecuritycloudexpo.com\/\" style=\"color:#0563c1; text-decoration:underline\">Cyber Security &amp; Cloud Expo<\/a> World Series with upcoming events in Silicon Valley, London and Amsterdam and explore the future of enterprise technology.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><img decoding=\"async\" src=\"http:\/\/www.cloudcomputing-news.net\/media\/img\/news\/business-man-in-suit-with-cityscape-montage-picture-id488536442.jpg\"><\/p>\n<p>As technology changes, the roles the key actors play changes with it. The feted Institute of Engineering and Technology hosted analysts from CCS Insight, who gave wide-ranging predictions on the state of the enterprise technology ecosystem &#8211; with the biggest cloud players featuring heavily in future trends.<\/p>\n<p>The yearly jamboree has taken on something of a life of its own, with press headlines regularly questioning some of the more outlandish claims the company has made &#8211; only for CCS to be more often than not proved right. CEO Shaun Collins, who insisted his opening speech was not just a &#8216;greatest hits&#8217; package, went through the reel, including Three making a move for O2 &ndash; later ruled out by the European Commission &ndash; and Google acquiring Motorola.<\/p>\n<p>This time around, for enterprise heads, there was plenty of focus on both the emerging technologies generating buzzword bingo cards and the largest companies with a strangehold on the ecosystem. These companies are defined by CCS as the &#8216;agenda setters&#8217;, with eight members in total; from the West, Alphabet, Apple, Facebook and Microsoft; from the East, Alibaba and Tencent; and in a category of its own, SoftBank, considering its continued spending spree on emerging players.<\/p>\n<p>Martin Garner, senior vice president, spent the first half of his session grappling with the catch-all term &#8216;digital transformation&#8217;. What does it actually mean? What results are coming from it? It would appear those pushing the term to its utmost don&#8217;t really know themselves. Garner emailed Microsoft asking for a flavour on what benefits customers were getting. Microsoft&#8217;s PR team responded a week later saying they had no numbers they could share.<\/p>\n<p>With this in mind, Garner guesstimated. If 10% of companies were involved in digital transformation initiatives, then there would need to be a 10% efficiency gain to make an official dent &#8211; something measureable in the economy. The problem is, we&#8217;re a little way off that.<\/p>\n<p>Enter, stage left, three heroic figures; artificial intelligence, blockchain, and the Internet of Things. As this publication <a href=\"https:\/\/www.cloudcomputing-news.net\/news\/2018\/feb\/16\/how-cloud-computing-ai-and-iot-will-transform-semiconductor-companies-revenues-2018\/\">has variously noted<\/a>, seeing these technologies outside of their silos will unlock various insights. This was therefore the first prediction CCS put out: <strong>AI, blockchain and IoT will become highly interdependent technologies by 2021<\/strong>. &#8220;The industry tends to talk about it all independently, but we believe this misses the bigger picture,&#8221; said Geoff Blaber, VP research Americas.<\/p>\n<p>AI will be the core to understanding insights from data and releasing its value, while blockchain will help establish trust and security. But there is another, more unsung hero. &#8220;Connectivity is the big piece here,&#8221; said Blaber,&#8221; that ensures you can move that data as intelligently and as seamlessly as possible.&#8221;<\/p>\n<p><img decoding=\"async\" alt=\"\" src=\"https:\/\/www.cloudcomputing-news.net\/media\/uploads\/James\/2018\/10\/05\/aiblockchainiotccs.jpg\"><\/p>\n<p>Blockchain was a particularly interesting touchpoint. &#8220;There is ridiculous, ridiculous levels of hype around blockchain,&#8221; said Blaber, &#8220;but that doesn&#8217;t mean it doesn&#8217;t have significant value.&#8221; Take Walmart and mangoes as an example. Thanks to a China-based partnership announced last December, the retail giant has taken the process of getting all stakeholders aligned &ndash; from farm to factory to supplier &ndash; down from seven days to just over two seconds.<\/p>\n<p>Cloud and blockchain will certainly combine &#8211; in terms of the hypervendors, that is<strong>. All major cloud service providers deploy blockchain commercially by the end of 2019<\/strong>, the analyst firm predicted. It&#8217;s interesting to note here how reticent Amazon Web Services (AWS) was to initially make its move. At last November&rsquo;s re:Invent many announcements were made &ndash; but blockchain was not one of them. The company would only say it was &lsquo;intrigued&rsquo; by what its customers would do there. Six months after, <a href=\"https:\/\/www.cloudcomputing-news.net\/news\/2018\/apr\/26\/aws-launches-blockchain-service-six-months-after-saying-it-wasnt-interested-technology\/\">AWS launched<\/a> blockchain network templates. &nbsp;&nbsp;<\/p>\n<p>Lots of services are being punted out to test the water &#8211; but the next 12 months, CCS argued, will see major releases. &#8220;Blockchain is essentially relevant to any industry or any transaction that needs to be securely documented,&#8221; added Blaber.<\/p>\n<p>That was not the most eye-catching potential change however &#8211; although it must be noted the upcoming remains only potential. Nick McQuire, VP enterprise at CCS Insight, had the arguably unenviable task of explaining quantum computing;&nbsp;as he put it, one of the most difficult things that humans have ever attempted. Put simply, quantum is a significant improvement on classical computing. It is not so much computing in 0s and 1s, but more &#8216;stateless&rsquo;, sub-atomic particles existing &ndash; albeit very briefly and inconsistently in this context today &ndash; in more than one state.<\/p>\n<p>Here&#8217;s the double-take. Classical computers would take one billion years to break encryptions such as RSA. According to Microsoft, with a product they are looking to put together in 2019, it could be broken in 100 seconds.<\/p>\n<p>&#8220;It&#8217;s no longer in the exclusive realm of crap science fiction films,&#8221; joked McQuire as a slide of Quantum Leap came up &#8211; which he admitted seemed a little harsh on the film. &#8220;Quantum is going to being quite a number of significant security concerns into the security ecosystem overall &#8211; encryption is going to be strengthened to defend against attacks from quantum computers.<\/p>\n<p>&#8220;Those that are interested in cloud are going to differentiate themselves around quantum,&#8221; McQuire added. &#8220;The size of customer workloads is doubling every year as more and more organisatons go to cloud &#8211; it&#8217;s a tremendous strain on the resource that is there, particularly silicon. We think quantum over time is going to solve a lot of this strain.&#8221;<\/p>\n<p>When it came to artificial intelligence, CCS argued the big cloud vendors would again be a part of the action. <strong>By 2020, <\/strong>the company&nbsp;predicted<strong>, cloud service providers would expand from general purpose AI to business-specific applications.<\/strong><\/p>\n<p>Putting products together around voice, chatbots, video, and so forth, McQuire argued, is all well and good &#8211; but what do industries really want? Yes, the call centre is where we&#8217;ve seen things happen, but what about predictive maintenance in manufacturing, fraud detection in finance, and demand forecasting and dynamic pricing in retail? The agenda setters will put together pre-built products to address these challenges, he added.<\/p>\n<p>Underpinning the vast majority of this is the concept of trust. The overriding theme of the sessions was around steering the data-driven economy, but of course not all data is created equal as Facebook found out after the Cambridge Analytica scandal &#8211; a topic oft-referenced by the analysts.<\/p>\n<p>This formed the basis of another prediction: <strong>trust would be the most important source of competition among cloud service providers in 2019.<\/strong> The example given was around Walmart&#8217;s beef with AWS, covered in chapter and verse by this publication. Earlier this year, to the surprise of not many, the retail giant went all-in with Microsoft.<\/p>\n<p>&#8220;The likes of Amazon, Alibaba, Facebook, Google and Microsoft recognise the importance of winning customers&#8217; trust to set them apart from rivals, prompting a focus on greater transparency, compliance efforts and above all investment in security,&#8221; the company wrote.<\/p>\n<p>So back to the agenda setters. This is the agenda they should be setting, but may they be usurped? McQuire sounded a cautionary note with his closing analysis &#8211; and it is to the East we turn.<\/p>\n<p>China&#8217;s relationship with Tencent in terms of its citizen services has caused eyebrows to be raised &#8211; not least with the bombshell story around <a href=\"https:\/\/www.bloomberg.com\/news\/features\/2018-10-04\/the-big-hack-how-china-used-a-tiny-chip-to-infiltrate-america-s-top-companies\">&#8216;spy chips&#8217;<\/a> being inserted into Chinese business computers comprehensively dismissed by <a href=\"https:\/\/www.apple.com\/newsroom\/2018\/10\/what-businessweek-got-wrong-about-apple\/\">Apple<\/a> and <a href=\"https:\/\/aws.amazon.com\/de\/blogs\/security\/setting-the-record-straight-on-bloomberg-businessweeks-erroneous-article\/\">Amazon<\/a>. But the link between technology and government is one to look at. &#8220;What we&#8217;re starting to see from those geographies is very significant long-term planning and billions of investment in the very technologies the agenda setters are competing on,&#8221; said McQuire.<\/p>\n<p>&#8220;In 12 to 18 months, it may not just be the companies themselves disruptive to this community, but governments themselves. It may just mean there is an arms race emerging at a national level.&#8221;<\/p>\n<p><em>Do you agree with these CCS Insight predictions? Let us know in the comments.<\/em><\/p>\n<p><a href=\"https:\/\/www.iottechexpo.com\/\"><strong><span><img decoding=\"async\" alt=\"https:\/\/www.iottechexpo.com\/northamerica\/wp-content\/uploads\/2018\/09\/all-events-dark-text.png\" src=\"https:\/\/www.iottechexpo.com\/northamerica\/wp-content\/uploads\/2018\/09\/all-events-dark-text.png\"><\/span><\/strong><\/a><strong>Interested in hearing industry leaders discuss subjects like this and sharing their use-cases?<\/strong> Attend the co-located <a href=\"https:\/\/www.iottechexpo.com\/\">IoT Tech Expo<\/a>, <a href=\"http:\/\/blockchain-expo.com\/\">Blockchain Expo<\/a>, <a href=\"https:\/\/www.ai-expo.net\/\">AI &amp; Big Data Expo<\/a> and <a href=\"https:\/\/www.cybersecuritycloudexpo.com\/\">Cyber Security &amp; Cloud Expo<\/a> World Series with upcoming events in Silicon Valley, London and Amsterdam and explore the future of enterprise technology.<\/p>\n","protected":false},"author":50,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-36442","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/36442","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/users\/50"}],"replies":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/comments?post=36442"}],"version-history":[{"count":2,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/36442\/revisions"}],"predecessor-version":[{"id":36446,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/36442\/revisions\/36446"}],"wp:attachment":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/media?parent=36442"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/categories?post=36442"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/tags?post=36442"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}