Cloud 2014: A Hundred Billion Here, A Hundred Billion There
Dec18

Cloud 2014: A Hundred Billion Here, A Hundred Billion There

“A billion here, a billion there, pretty soon, you’re talking real money.”  (Everett Dirksen) However, when it comes to cloud you can add a bunch of zeroes. While IT spending will grow 5% year over year to $2.1 trillion in 2014, cloud spending, including cloud services and the technology to enable these services, will surge by 25% to over $100B, according to IDC. This will be accompanied by a similar expansion in the variety of workload-specialized cloud infrastructure services, leading to new forms of differentiation among cloud service providers. The research company also predicts a pitched battle between cloud applications and solutions developers, and that by 2017, more than 80% of new cloud apps will be hosted on six PaaS platforms. Synergy Resource Group LLC reports that other Infrastructure as a Service (IaaS) providers are getting pounded into the ground by Amazon Web Services. AWS accounted for 35% of the IaaS market, followed by IBM at 7% and everyone else less than 3%. Regardless of the platform, cloud computing will become the bulk of new IT spend by 2016, according to Gartner. That year will be a defining year for cloud as private cloud begins to give way to hybrid cloud, and nearly half of large enterprises will have hybrid cloud deployments by the end of 2017. “Overall, there are very real trends toward cloud platforms, and also toward massively scalable processing. Virtualization, service orientation and the Internet have converged to sponsor a phenomenon that enables individuals and businesses to choose how they’ll acquire or deliver IT services, with reduced emphasis on the constraints of traditional software and hardware licensing models,” said Chris Howard, research vice president at Gartner. “Services delivered through the cloud will foster an economy based on delivery and consumption of everything from storage to computation to video to finance deduction management.” A $100-billion-plus cloud pie is attracting a lot of attention, and all the usual suspects are sharpening their knives. For example, last week Microsoft launched the Cloud OS Network, bringing together 25 top cloud service providers under the same banner to deliver hosted services on Azure, its cloud platform. Dell was also feeling inclusive, extending and/or adding cloud partnerships with Microsoft, Google, Dropbox, CenturyLink, Red Hat and Accenture. At the same time Microsoft and Dell were beefing up their cloud portfolios, HP was holding its own event in Barcelona where it announced new cloud services and solutions. No stranger to the cloud, IBM’s third quarter earnings report boasted 70% growth in its cloud computing from the previous year, delivering more than $1 billion of cloud revenue in a quarter of which $460 million was...

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