segment analysis
private cloud infrastructure market is still in it’s nascent stage, both small and large enterprises are utilizing it heavily and are the primary consumers of Cloud infrastructure. By 2016, at least 50 percent of enterprise users will rely primarily on enterprise-mobile client instead of a desktop client which means a clear shift in the traditional IT infrastructure. It’s well supported by the fact that more than one third of the digital data would be stored on the cloud infrastructure by 2016. In 2011 just 7 percent of consumer’s digital data was stored in the Cloud which will grow phenomenally to whooping 36 percent in 2016. Recent IDC cloud research shows that worldwide revenue from public IT cloud services exceeded $21.5 B in 2010 and will reach $72.9 B in 2015, representing a compound annual growth rate (CAGR) of 27.6percent. This rapid growth rate is over four times the projected growth for the worldwide IT market as a whole (6.7percent). By 2015, one of every seven dollars spent on packaged software, server, and storage offerings will be through the public cloud model. The cloud movement is about much more than the cloud. Analysts predict an aggregation of Cloud offerings located in the same data center to provide appropriate levels of performance, security, manageability and availability. The cloud is no longer a competitive advantage, but has become an operational necessity. Results from a recent KPMG survey show that 81percent of businesses are either planning their initial cloud computing forays, are in early or advanced stages of experimentation or have full implementations. But before moving to the cloud, businesses first need to examine their current IT infrastructure, usage and needs. Worldwide software-as-a-service (SaaS) revenue is forecast to reach $14.5 B in 2012, a 17.9 percent increase from 2011 revenue of $12.3 B, according to Gartner, Inc. SaaS-based delivery will experience healthy growth through 2015, when worldwide revenue is projected to reach $22.1 B.
50 | September 2012
Cloud approach to infrastructure will change the traditional landscape as they offer a much cheaper alternative to traditional infrastructure– some businesses can cut their operational costs by as much as 85 percent if they opt for cloud infrastructure. Sharmila Sahani Mulligan, Founder & CEO, ClearStory Data
Brian J Manning, President and Managing Director, CSC India, says “While no one can predict exactly how the IT services marketplace will change, we’re confident that client demand will grow very rapidly for cloud computing. In 2012, the global market for cloud services is predicted to surge to US$148.8 B in 2014. This shows that there will be a huge transformation in the business model of any organization.” In the year 2012, the impact of the shift to cloud computing will become apparent. One of the first obvious effects will be the cloud-driven transformation of whole industries. Cloud application platform/PaaS wars will intensify. Phil Fersht, founder of outsourcing consultancy Horses for Sources, calls cloud services the foundation for next-generation enterprise sourcing solutions. He believes cloud services will make traditional delivery of IT services more efficient and cost-effective. He adds, “This new class of outsourcing has the potential to unlock tremendous value for customers.”
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