Cloud database management grows as on-prem 'Stockholm Syndrome' persists

Dive Brief:

Three-quarters of all databases are expected to migrate or run on a cloud platform by 2022, according to Gartner.
The software as a service model and data analytics use cases are shaping the growth of the cloud-based database management system (DBMS) market. The sector saw revenue rise 18% last year, with cloud DBMS contributing 68% of overall revenue. Microsoft and Amazon Web Services drove 75% of the market growth.
The future of on-premise DBMS — IBM, Teradata, SAP HANA and Yellowbrick — is projected to be "limited," according to the The Future of DBMS Market is Cloud report. The appliances "have moved to the replacement phase of the Market Clock."

Dive Insight:

It's been a long time coming, but cloud service providers (CSP) are eclipsing on-premise DBMSs.

Still, the on-premise DBMS market expanded 30%. The growth is largely attributed to "DBMS Stockholm Syndrome" where companies "create a captive audience where the only option is to purchase additional DBMS licenses to increase their on-premises deployments," according to the report.

The attachment to on-premise databases is understandable because companies fear risk and expense.

"I believe it will be many years before even most of IT is in the cloud. It is not a fast transition, especially for large companies," Donald Feinberg, distinguished VP analyst at Gartner, told CIO Dive in an email.

Companies are choosing to rely on cloud as their "default platform for database management" in form of CSPs and third-party independent software vendor products compatible with a CSP infrastructure, according to Gartner.

Because of the transition to a predominantly cloud-based infrastructure, decision makers are tasked with evolving data management strategies to accommodate a cloud DBMS involving private cloud or cloud hosting for applications.

The accelerated rate of cloud DBMS adoption can be daunting and there are a few things that can cause headaches for CIOs, according to Feinberg.

How can a company integrate services among multiple clouds?
Most company policies are outdated, restricting the use of public cloud for security or legal concerns. How long will it take to update regulations so they can deploy new technologies?
What are the legal risks of cloud DBMS when it comes data sovereignty?
What if prices increase and therefore push companies back onto on-premise solutions?

The market's rapid growth is also heating up cloud competition, to the benefit of customers.

CSPs are more forthcoming with use cases and references for companies to use, according to Feinberg. Sales incentives in the form of consulting and free migration services from CSPs help break down the threat of reliance on on-premise DBMSs.