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2019/11/28 12:44:06

Cloud computing (world market)

The world market of cloud solutions and services grows so intensively that to predict the rate of its increase it appears in practice quite difficult therefore data of the leading analytical companies occasionally strongly differ. Nevertheless, all of them fix the same trends: fast growth rate of expenses on cloud computing and also the accompanying market of services, DPCs and traffic of data in such systems. Cloud computing SaaS IaaS PaaS Equipment for cloud infrastructures I I I I I Software for management of clouds

Content

2019

for What to wait in the cloud market in 2020

At the end of November, 2019 the Forrester analytical company published a research in which submitted five forecasts for cloud computing for 2020.

1. IBM and Oracle recede on the familiar territory; Alibaba threatens Google

Prime vendors of cloud services are Amazon Web Services (AWS), Google, Microsoft and Alibaba. Though IBM and Oracle tried to provide services in this area, acquisition of IBM of Red Hat company and partnership of Oracle with Microsoft in 2019 say that they return to familiar space of application development platforms. According to analysts, IBM and Oracle simply did not have means to compete with other cloud giants. But income of Alibaba from the regional platform will exceed $4.5 billion so the Chinese company will bypass Google and will take the third place among the largest cloud services.

IBM and Oracle recede on the familiar territory; Alibaba threatens Google
IBM and Oracle recede on the familiar territory; Alibaba threatens Google

2. Suppliers of SaaS leave proprietary platforms and pass to leaders of the industry

Suppliers of SaaS began to select large partners as for the competition in SaaS space of the company it is necessary to reduce costs as much as possible. Salesforce relies upon AWS more and more; Microsoft Office 365 works at Azure infrastructure. Thanks to such partnership suppliers of SaaS can vpltny be engaged in the main objective - to improve operation of applications. Besides, according to the report, the company began to find regional partners: Workday cooperates with AWS in Canada, and Salesforce with Alibaba in China.

3. Use of high-performance computing in a public cloud increases to 40%

Historically it developed so that high-performance computing in a public cloud was unavailable because of low resource intensity and insufficiently powerful infrastructure. However in 2020 large investments of cloud providers will help to bypass these restrictions, the report says.

AWS, Azure and Google already added high-performance computing to the services. It is expected that their use in a cloud will increase by 40% in 2020. This gain is caused by emergence of new types of virtual machines, including C5/P2/P3/G3 at AWS, H-/NC -/ND -/NV-series at Azure and V100/P100/K80 at Google.

AWS, Azure and Google already added high-performance computing to the services
AWS, Azure and Google already added high-performance computing to the services

4. Cloud Open Source-разработка will be replenished with mesh and serverless services

In 2020 the cruel competition in an ecosystem of cloud developments where hundreds of projects and vendors open source will fight for attention of developers will run high. In 2019 Kubernetes won fight for the orchestration of program containers. Unlike containers, in the field of mesh and serverless the leader was not defined yet, but there are favourites. Mesh-networks promise even more powerful interservice networks, improvement of visibility and security whereas besserverny calculations open the new programming models which are completely abstracted from infrastructure problems. Many companies open source compete in the field of besservisny networks: Consul Connect, Gloo, Istio, Kuma, Linkerd 2, Maesh, Mesher and SOFAMesh. According to the report, from all besservisny networks Istio has the greatest advantage. The main commercial offers, including AWS App Mesh, Google Anthos and VMware NSX SM, are already available.

5. Software suppliers for management of cloud environments will be engaged in cloud security

In June, 2019 it became known of leakage of credentials of the American bank Capital One which uses services of AWS. This event brought up very important issue which concerns management of cloud servers — data security and applications. Leaders of area will begin to pour money in own security solutions while service providers on management of multicloud environments should create or purchase security aids which are engaged not only management of identification and access as earlier.[1]

Transition to "clouds" delivers to banks of suffering

In October, 2019 the Sapio Research analytical company published results of the research conducted by request of the supplier of cloud services of Computers and Structures Inc. (CSI). Poll concerned problems of implementation of cloud computing in banks.

86% of financial companies stated that the lack of an opportunity to transfer old applications to a cloud negatively affects their business. At the same time 85% of respondents consider digital transformation a key priority task.

The impossibility of cloud migration leads to the fact that backup and updating of applications takes away too much time approximately from every third financial institution. 33% of respondents say that because of it problems it is not possible to make effective decisions regarding IT.

Financial companies hardly master clouds, lose money and trudge for competitors
Financial companies hardly master clouds, lose money and trudge for competitors

The research also showed that a part of the companies do not hurry to pass to cloud infrastructure as are afraid of problems with information security.

According to 36% of IT heads from the financial sector, the problem of protection of a cloud environment is the main obstacle in a way of translation of applications to a cloud. 31% of survey participants called one more problem — ambiguous instructions of finance regulators concerning security management. 55% announced use only of "adequate security measures" and impossibility to do more in this direction.

Nearly 40% of the polled financial institutions state lack of direct connections with emitting banks and ekvayer, payment systems and different service providers that prevents business to develop possibilities of customer service and also not to use public and unreliable communications.

According to the CEO of CSI Simon Payne, because of complexity in normative and legislative instructions on security many companies from the financial sector mistakenly avoid use of cloud computing.

However the cloud systems it is proved offer more strict method of security management and compliance to requirements. In cloud environments algorithms of cyber defense and machine learning thanks to which compliance to standards of data security is provided are used, he noted.

It is heavy to financial companies to migrate in clouds, and they suffer from it
It is heavy to financial companies to migrate in clouds, and they suffer from it
«
As many companies also refer to the difficulties connected with transfer of outdated applications it becomes clear that the financial sector should go a long way to take advantage of a digital era. There is a fundamental delusion that outdated applications cannot be transferred to a cloud — it is not true. Now we can update the old code; thus, applications, crucial for business, which were not supported by clouds earlier can be transferred to them, and then if desired — to public cloud environments" — Paine reported.
»

In a research it is noted that applications launch in cloud infrastructure allows the company to earn quicker, to use new and more powerful technologies and also to start suitable and compatible workflows, without distracting from business challenges. By estimates of CSI, up to 80% of crucial main workloads are still executed locally that deprives of them advantages of a cloud environment.

«
Digital era promises extensive opportunities, providing a considerable gain of performance in work of the companies. Implementation of cloud computing is an important part of process of digital transformation. Despite subjective representation, the main risk it is connected not with security and compliance to requirements here, and with an arrest of development of the innovation opportunities and the companies which become lagging behind when start applications only in the closed systems — Simon Paine concluded.[2]
»

Peripheral calculations will become more important cloud by 2025

Speaking at the Open Networking Summit conference in Belgium in September, 2019 the head of the network Linux Foundation projects Arpit Joshipura said that peripheral calculations will become more important cloud by 2025. Read more here.

2018

Expenses on public clouds rose by 27.4% to $182.54 billion — IDC

In 2018 the amount of the world market of public cloud services was about $182.54 billion that is 27.4% more, than the previous year. At the end of July, 2019 announced the growing demand for such services in Research Firm IDC.

According to experts, the considered market grows more than 4.5 times quicker, than all IT industry. Though in comparison with 2017 dynamics decreased a little, it was expected, considering that in three years the market of public clouds grew more than three times and reached high amounts which further accumulation is harder and harder, it is specified in the analytical report.

Segments of the market of public clouds, data of IDC
Segments of the market of public clouds, data of IDC

35% of revenue and 46.3% of all growth of expenses in the field of public clouds in 2018 were the share of the leading five. The share of these companies in terms of money in comparison with 2017 rose by 3 percentage points.

These digits as experts note, show the remaining tendency to market consolidation. Even more brightly domination of several players is expressed in segments IaaS and PaaS in which top-5 vendors control 63% of expenses.

The senior vice president and the leading analyst of IDC Frank Gens explains the increased concentration of leaders in PaaS and IaaS segments with the fact that developers and the companies selected them as the directions on which producers will concentrate the innovations within 10 years and later.

"the platform as service" urges on the type product demand the shortage of highly skilled developers in the companies, the director of research of the PaaS market in IDC company Larry Carvalho says.

«
Own cloud infrastructure led to increase in demand for the platform tools intended for acceleration of development and deployment of applications at the expense of the abstracted container applications. In spite of the fact that only 11% [PaaS market] were the share of the Pacific Rim [in 2018], revenue grew quicker there, than in the rest of the world — Carvalho said.
»

Global expenses on the solutions IaaS in 2018 made $35.98 billion, having increased by 45% of rather previous year. In other segments of the cloud market growth rates were lower: costs for PaaS and SaaS increased by 39.9% and 20.8% respectively.

The market of public clouds grows 4.5 times quicker than all IT industry
The market of public clouds grows 4.5 times quicker than all IT industry

The director of research of the SaaS market in IDC company Frank Della Rosa pays attention that the segment of the software provided in service quality remains to the largest in the cloud market from shares in 62.4% at the end of 2018.

«
Implementation of cloud corporate solutions, such as ERP, SCM and HCM, also accelerated in all segments. Most of buyers, starting new applications, select or SaaS first of all, or along with other technologies — the expert noted.
»

In the research IDC the opinion of one more analyst — Deepak Mohan who specializes in market research of services for cloud infrastructure is also given. According to him, the IaaS segment in 2018 ceased to grow slowly as it was earlier. The change of a trend became remarkable, considering that in 2017 expenses on solutions of a type "infrastructure as service" were measured by considerable $24 billion. The splash in the 2018th happened thanks to growth of the leading providers and increase in demand for IaaS in the Pacific Rim, especially in China. So, the deposit Amazon Web Services (AWS) and the Pacific Rim in growth of an IaaS segment was 80%, counted in IDC.

According to forecasts of IDC, the amount of the world market of public cloud services will surely grow and will reach nearly $500 billion by 2023.[3]

Growth of the market of public cloud services by 19% to $182.4 billion is Gartner

In 2018 the volume of the world market of public cloud services reached $182.4 billion, having increased by 19% concerning the 2017th. Such these analysts of Gartner published on April 2, 2019.

Remain the largest segment of the considered market solution SaaS which global sales in 2018 made $80 billion. The three of types of public clouds in which the companies invest most of all included BPaaS (business processes as service) and infrastructure as service (IaaS).

The indicators of segments of the market of public cloud services given to Gartner
The indicators of segments of the market of public cloud services given to Gartner
«
Cloud services definitely change the industry radically — the vice president for the researches Gartner Cyd Sid Nag says. — In Gartner we do not know any producer or service provider, whose business models and growth of revenue would not depend on the growing implementation in the companies of strategy in which cloud services are delivered into the forefront. The fact that we see now, it only the beginning. By 2022 as predicts Gartner, the size of the market of cloud services will exceed the volume of the industry of IT services, and growth rates of the first will be three times higher.
»

According to the research Gartner, more than a third of the organizations include cloud expenses in number of three priority directions for investment. Analysts predict that more than 30% of purchase costs of new software at the technology companies will be come to the end of 2019 only on cloud services. It means that sale of software licenses will decrease while SaaS and cloud subscriptions will become even more popular, experts explain.

Cyd Nag says that nearly 19% of corporate budgets for cloud computing are spent not for products, and for the services connected with clouds: consulting, system integration, management, etc. By 2022 the share of similar services will increase to 28%, analysts predict.Ошибка цитирования Неверный вызов: нет входных данных

Synergy Research Group: The cloud market grew by 32% to $250 billion

In 2018 the volume of the global cloud market passed for $250 billion, having increased by 32% concerning the 2017th. Such data are provided in a research which analysts of Synergy Research Group published in January, 2019.

The most fast-growing segment experts called services IaaS and PaaS, expenses on which in the world at the end of 2018 jumped by 50%. The second place on growth rates was taken by the software for management of hybrid cloud environments which sales increased by 41%.

Segments of the cloud market and the companies leading in them given to Synergy Research Group
Segments of the cloud market and the companies leading in them given to Synergy Research Group

In a segment corporate solutions SaaS registers 30 percent rise. The same dynamics took place in the field of infrastructure (the equipment and software) for public clouds. Global costs for equipment rooms and software technologies for the private cloud systems rose by 29%.

In 2016 costs for cloud services were higher, than on the equipment and software based on which they work. In 2017 and 2018 the gap was even more essential. Despite surge in demand for cloud infrastructure in 2018, expenses on services all the same increase quicker, experts note.

In 2018 cumulative sales hardware and the software used for creation of cloud infrastructure exceeded $100 billion. Costs between public and private clouds shared approximately equally, but the first category continues to grow quicker.[4]

Thanks to the growing investments of the cloud providers into expansion acting and construction of new data centers they could earn more than $150 billion revenue from infrastructure services (IaaS, PaaS, private clouds) and corporate by solutions SaaS at the end of 2018. Besides, infrastructure of these companies is used in work of Internet services, such as search systems, social networks, e-mail, e-commerce, game and mobile applications.

IDC: the industries with the most heavy cloud expenses

On December 14, 2018 the International Data Corporation (IDC) analytical company published results of a research in which called the industries with the most heavy expenses on cloud computing. First place in 2018 was won by health care which representatives spent about $12.1 billion for the relevant services.

Public sector with an indicator in $8.4 billion was at the second place on costs for cloud services. The leading three was closed by financial market with cloud investments in the amount of $7.3 billion at the end of 2018. Further retail ($6.1 billion) and manufacturing enterprises ($3.6 billion) follow.

The health care became the leader in cloud expenses
The health care became the leader in cloud expenses

On five specified industries where it is most of all spent money for cloud computing, $37.5 billion expenses at the end of 2018 were necessary in the amount. It is expected that in 2019 this amount will be measured by $45.4 billion, i.e. will grow by 21.5%, and three of five markets will show rise above an average on the market.

The senior vice president and the top analyst of IDC Frank Gens says that investments into cloud services will grow at the accelerated rates by 2021, and it is unusual to the markets with multi-billion turnover.

«
Such growth it is caused by fast digitalization of the industries, such as health care, financial services and production where clouds form the basis of growth of new generation of technologies and the innovation strategy, - the expert noted.
»

Most of all funds for cloud services at the end of 2018 spent the companies in the USA – about three quarters of a universal indicator. The majority of other regions will show growth above an average on the market: for example, in Japan and China rise for 54% and 47% respectively is expected.

World expenses on cloud services in medicine in 2018 for the first time passed for $10 billion, and in Western Europe – for $1 billion. In comparison with other developed countries of Japan lags behind on implementation of cloud computing and will be able to prodemonstirovat growth of the corresponding market to $1 billion only by 2022. This mark two years faster will obey China, are sure of IDC.

The senior analyst on researches in Zachary Rabel IDC notes that the world cloud market continues to grow quicker and quicker because users of such services demand from cloud providers of niche opportunities in the solutions and industry experience.[5]

«
To correspond to this growth, suppliers of cloud services even more often displace the horizontal opportunities towards formation of industry cloud solutions, and industry clouds in itself create partner consortia for promotion of innovations in the market. The health care leads this trend, but financial and production sectors and also retail is adopted by progress and failures of horizontal platforms for creation of own way of development, – Rabel reported.
»

Having analyzed data for 2017, analysts found out that the SAP company with a market share of 21.6% was the leading supplier of cloud solutions in the financial industry. In manufacturing industry the software developer and the cloud Veeva Systems systems caused a stir, and the Lockheed Martin company won first place on revenue in the market of cloud solutions for public sector with an indicator more than $1 billion.

The developer of software solutions for health sector of Athenahealth whose revenue made 1.2 billion dollars became the only other vendor which subdued a billion boundary.

Data for all 2018 are not provided. Analysts only pointed to the largest cloud suppliers in health care according to the results of the first half of the year (see the chart below).

Cisco Global Cloud Index 2016-2021

Distribution of cloud services imposes new requirements to data processing centers Cisco issued at the beginning of 2018 the seventh annual report of Cisco Global Cloud Index 2016-2021 ("The global index of development of cloud computing during the period from 2016 to 2021"). Its principal themes — virtualization of DPC and cloud computing, i.e. the basic elements defining new delivery modes of consumer and corporate network services.

According to a research, growth of domination of cloud services on the Internet is promoted both consumer, and business applications. In consumer segment stream video, social networks and Internet search became the most popular cloud applicaions. In a business segment quicker than others applications in the field of planning of corporate resources (ERP), joint work, analytics and also other applications for the digital enterprises develop.

Steady growth of multicloud traffic is expected

Rapid growth of traffic of DPC is defined by splash in cloud applicaions. According to the report, by 2021 global annual traffic of cloud DPCs will grow by 3.3 times and will reach 19.5 zettabyte (ZB) (in 2016 — 6 ZB), annual increment (CAGR) for the specified period will make 27%. Global cloud traffic by 2021 will reach 95% of cumulative traffic of DPC, in 2016 this indicator was 88%.

Growth of cloud traffic is promoted by improvement of information security and development of Internet of Things

Until recently questions of information security were the main barrier on the way of implementation of cloud computing. Improvement of methods of management of DPC and control of data helped to minimize risks of the enterprises and to improve protection of users. Innovations in information security field in combination with such advantages of cloud computing as scalability and economy of the scale (economies of scale), substantially influence growth of cloud traffic. Besides, distribution of applications of Internet of Things (Internet of Things, IoT), the "smart" cities and cars, the connected health care and power, require scalable calculations and new solutions for data storage. By 2021 Cisco predicts growth of IoT-connections to 13.7 billion (an indicator of 2016 — 5.8 billion).

Doubling of number of hyper large-scale DPCs

Increase of resource requirements of DPC and cloud led to development of large-scale public DPCs which began to call hyper large-scale. According to the forecasts published in the current year, by 2021 in the world there will be 628 hyper large-scale DPCs whereas in their 2016 was 338 (growth for the considered period by 1.9 times). By 2021 will fall to the share of hyper large-scale DPCs:

  • 53% of all servers of DPC (in 2016 — 27%);
  • 69% of all computing power of DPC (in 2016 — 41%);
  • 65% of all data which are stored in DPC (in 2016 — 51%);
  • 55% of all traffic of DPC (in 2016 — 39%).

Key data and forecasts of "Global index of development of cloud computing"

  • By 2021 94% of tasks and virtual calculations (instance) will be executed in cloud DPCs, in traditional DPCs — 6%.
  • The world volume of the data stored in DPC by 2021 will increase by 4.6 times and will reach 1.3 ZB (an annual gain of 36%), in 2016 this indicator was the 286th exabyte (EB).

  • 30% of all data stored in DPC will fall on Big Data by 2021 (2016 — 18%).
  • Amount of data, stored on devices, by 2021 by 4.5 times will exceed amount of data in DPC and will reach 5.9 ZB.
  • Thanks to development of Internet of Things the total annual amount generated by different devices (and not necessarily at the same time saved) data by 2021 will reach 847 ZB (2016 — 218 ZB). The volume of the generated data exceeds volume stored on two orders.

For research purposes in category of cloud computing the platforms on demand providing universal network access to an array of the configured general use computing resources (networks, servers, DWH, applications, services, etc.) which can be quickly selected or removed at the minimum actions from management systems or service provider were considered. Models of deployment include private, public and hybrid clouds. Cloud DPCs can be operated by both service providers, and private enterprises.

2017

Growth of the market of public clouds by 29% to $117 billion is IDC

In 2017 the volume of global market of public cloud services increased by 29% and in terms of money was about $117 billion. Such data are provided in the report of IDC published on June 22, 2018.

Experts note that high growth rates of expenses on public cloud services in the world remain for five years in a row in spite of the fact that lately revenue in this market was tripled.

Segments of the market of public cloud services, data of IDC
Segments of the market of public cloud services, data of IDC

From the regional point of view the USA continues to provide the most part of sales though the country share in total cost of public cloud services slightly decreased. In the 2017th the contribution of the United States was 60% whereas the previous year the share indicator reached 62%. Decrease happened against the background of growth of participation of other regions.

More than 64% of revenue in the considered market were created by the SaaS segment (the software as service). Among top trends in this category analysts noted consolidation of vendors against the background of stable growth. In 2017 revenue rose by 22% here and came very close to $75 billion. Progress, resource management systems of the enterprise (Enterprise Resource Management, ERM), software for customer relationship management (Customer Relationship Management, CRM) and solutions for group work (Collaborative Applications) generally provided.

14.6% of the total size of the market of public cloud services were the share of a PaaS segment share (the platform as service). In the 2017th growth rates slowed down a little here and were 47% against 48% in the 2016th, and revenue exceeded $17 billion.

More than 31% of turnover in the market or about $25 billion was provided by the IaaS segment (infrastructure as service) providing use of computing resources of the supplier, such as servers, network equipment and data warehouses. Analysts also noted some deceleration here: growth rates in the 2017th were within 40% instead of 45% in 2016.

The rating of vendors is not given in a research. It is noted only that in 2017 16 largest suppliers of public cloud services controlled over 50% of the market.[6]

Growth of the market of public clouds by 30% to $153.5 billion is Gartner

On April 12, 2018 analysts of Gartner published some results of a research of the world market of public clouds. Expenses on these solutions increased more than by 30% thanks to infrastructure services (IaaS) and the software provided in service quality (SaaS).

In 2017 total costs of consumers and the companies  of the cloud services provided within a public access made $153.5 billion against $118 billion the previous year.

The Segments of the market of public clouds given to Gartner
The Segments of the market of public clouds given to Gartner

Sales of solutions of IaaS jumped up from 25.3 to 30 billion dollars. SaaS and PaaS segments showed rise from $38.6 billion and $7.2 billion to $60.2 billion and $11.9 billion respectively.

Expenses on BPaaS-services (business processes as service)  and services of cloud management and security in 2017 reached 42.6 and 8.7 billion respectively.

The largest segment of the market of public clouds remains SaaS which, according to forecasts of Gartner, in 2018 will increase by 22.2%, and to the 2021st 45% of software expenses in the world will fall on these solutions. The most fast-growing segment analysts call IaaS which volume in 2018 will increase almost by 40%.

«
The growing domination of suppliers of hyper scalable IaaS-solutions creates to end users and other market participants both great opportunities, and problems — the analyst of Gartner Sid Nag comments on a research. — Though it allows to increase efficiency and economy, the organizations should be careful concerning IaaS-providers who can have an uncontrollable impact on clients and the market. Following multicloud trends, the companies will look for easier way for trouble-free movement of the workloads, applications and data through proposals of suppliers of IaaS.
»

The specialist also noted that the SaaS model became preferable in many areas, and among users of such solutions demand for the services created for the solution of certain tasks grows.

IDC: 94% of the companies upgrade infrastructure for delivery of applications

According to data of a research Citrix and IDC, around the world 94% of the companies actively prepare for modern realities, orientation to cloud computing: they are engaged or review and transformation, or upgrade of the network infrastructures to simplify delivery of applications.

About a research

During the research of analytics of IDC by request of Citrix company found out how the companies cope with problems in networks in the course of the solution of important problems of digital transformation what budgets are spent for and as to optimize them. Representatives of 900 large companies participated in poll worldwide.

Respondents had to answer the following questions:

  • What difficulties upon transition to delivery of applications from a cloud could you select?
  • What is a barrier on the way to migration of applications to a cloud?
  • Whether look for you the uniform consolidated approach to the organization of a system?
  • Whether you are in process of search of the specific solution?

Main theses

  • Only 24% of the organizations are sure that their networks completely meet the requirements necessary for transfer of software in a hybrid cloud;
  • 82% of the polled companies believe that their current architecture of network is too difficult for transfer of applications in a cloud;
  • 76% of respondents reported that their networks are completely not ready (36%) or partially are not ready (40%);
  • 70% of survey participants have 2-3 methods of remote access to the data centers and a cloud.

Outputs

Analysts found out that main objectives of transition from local model to the concept of delivery of applications to the user devices through a cloud — increase in security and cost reduction, including due to optimization of work of IT departments and specialists. Gradually hybrid and multicloud computing becomes "new regulation" for the companies which implement cloud environments. However process of adaptation of the available architecture under delivery of applications can be rather difficult and expensive.

At the same time during the research the high need for complex approach when implementing the strategy of delivery of applications was revealed. Most the organizations (98%) incline to single solution instead of integration of the different systems from several producers.

Opinion of experts

Perhaps, the companies will need change of the available applications before they "migrate in a cloud". Therefore to spend budgets one software development more effective for development and upgrade of the applications. In certain cases it is necessary to rewrite completely them, said in the report of Citrix and IDC.

According to experts, the companies also should consider ability to integrate with other applications for the purpose of migration, to consider how to use data with several applications, and to check existence of the programming interface which will simplify workflows.

In the market there is a lot of ready SaaS-applications, but, judging by survey results of IDC, the companies try to invest money in development of proprietary applications and upgrade of data centers as at implementation ready SaaS cannot influence cloud performance, to pick up instruments of control of activity of users and also it is necessary to create a uniform safe input in applications.

In certain cases financial resources could be spent more effectively, and IT departments would need to change the usual principles of work upon transition to hybrid cloud computing.

Suppliers of external cloud solutions can undertake those tasks which are carried out, as a rule, by local specialists on places. Placement of resources is executed for only several clicks by a mouse instead of deployment of the new local server. At the same time the provided security measures can protect from the threats directed to local and cloud resources.

Delivery of virtual applications through a cloud allows the companies to receive rather flexible and dynamic infrastructure. But they will be able to take its advantage only if refuse processes and methods of work which are applied to traditional data processing centers. Otherwise all resources and investments will be vain.

Survey participants

The companies from the different industries participated in poll of IDC: finance, insurance, medicine and many others. Their revenue averages about $300 million a year, and costs for IT infrastructure — about $3 million.

Pricing war

In April, 2017 analytical company 451 Research published the results of a research which showed new pricing war which was launched by market leaders of cloud computing.

It is said in the statement of April 20, 2017 that if earlier price competition developed only in a segment of virtual machines in a cloud, then now it concerned services of data storage, and in the next 18 months pressure of the prices will be observed in other segments, including in cloud databases.

The prices of object data storage in a cloud began to fall in the third quarter 2016. Then the first step in this direction was taken by IBM in relation to the SoftLayer platform. Then the competing Amazon Web Services (AWS), Google and Microsoft followed the example.

Cloud giants launched new pricing war
Cloud giants launched new pricing war

As a result by April, 2017 the cost of services of object data storage dropped by 14%, that time as the prices of virtual machines fell only by 5%.

«
Large cloud providers, probably, actively play a game of tag, reducing the prices of object storage not to be selected with high cost — the analyst of 451 Research Jean Atelsek says. — It is the first case of big pricing war outside computing solutions and points to formation of object storage by a mainstream. Though reduction of prices is good news to cloud users, now they faced the new problem connected with difficulties of the choice of suppliers.
»

Researchers consider that reduction in cost of cloud services is a consequence of a maturity of the market, the growing number of implementation projects of clouds, confidence of the companies in these solutions and gain of the competition for orders on data transfer from local infrastructure in cloud.

It is expected that relational databases will become the following field of pricing war of cloud providers.[7]

2016

Gartner: growth of the market of public clouds by 20% thanks to IaaS

On February 22, 2017 the Gartner analytical company published results of a research of the world market of the cloud services provided to a large number of clients, using public data centers. Expenses grew by 20% thanks to infrastructure services (IaaS) here.

By Gartner estimates, in 2016 total costs of consumers and the companies of public clouds made $209.2 billion against $175 billion in the 2015th. Sales of IaaS-solutions rose by 56% to $25.3 billion that was promoted by the growing demand for translation service of IT infrastructure in a cloud and high-performance loadings, like artificial intelligence, Internet of Things and analytics.

The forecast for the market of public clouds for the period from 2016 to 2020 given to Gartner
The forecast for the market of public clouds for the period from 2016 to 2020 given to Gartner

Rather big growth rates (23%) in 2016 were also shown by the SaaS segment (the software as service) which volume was $38.6 billion.

«
In the world market of public clouds the stabilization period begins. In 2017 growth rates will reach peak 18%, and in the years ahead they will decrease — the director of research of Gartner Sid Nag says. — Though some organizations only estimate a role of clouds at their IT strategy, attempts to optimize expenses and to follow a way of transformation are promising and productive for buyers of services of IT outsourcing.
»

According to Cyd Naga, the companies select cloud solutions for their flexibility, scalability, innovation and opportunities for growth of business and cost reduction.

In a research it is also said that in 2016 implementation of PaaS-solutions (the platform as service) was measured by $7.2 billion against $3.8 billion the previous year. Income in segments of cloud advertizing, BPaaS-services (business processes as service) and services of cloud management and security was 90,3, 40,8 and 7.2 billion dollars respectively.[8]

Mark Hurd, SEO of Oracle: By 2025 80% of IT budgets "will go to clouds"

In a presentation at the conference of Oracle OpenWorld 2016 Mark Hurd, the CEO of Oracle, told about world economy and about the problems facing IT in the conditions of weak GDP growth. In 2015 this indicator on average in the world increased by only 2.5%. In such situation of the CEO of the companies it is necessary to solve the most difficult problems.

Whether it is possible to increase a market share at simultaneous cost reduction? At a current status of IT when 80% of the corporate IT budget leave on support and service hardware and the software, reduction of the outdate IT in compliance with requirements of information security to make it it is very problematic, but it is possible.

Clouds are spoken well by many arguments: reduction of a capital expenditure and maintenance expenses, support and updating of IT, decrease in labor costs, possibility of accurate planning of investments into IT. At the same time clouds are safer, reliable, simple in use, are better scaled, than the solutions unrolled locally. They promote innovations in business: allow to react quicker to demand and to enter the market with new products or services.

As Mark Hurd noted, the Oracle corporation invests in development of cloud computing: only in 2016 financial year of an investment in researches and development made 5.1 billion dollars. For the last six years they rose 2 billion dollars. 10 thousand engineers of Oracle work on the innovative cloud solutions.

In 2015 on Oracle OpenWorld 2015 Mark Hurd said that in 10 years of 80% of industrial applications will be transferred to clouds, 80% of the world market of SaaS will belong to two large suppliers, all development and software testing will be performed in a cloud, practically all corporate data will be stored in clouds, and corporate clouds will become the safest IT.

Confirming the forecasts, the CEO of Oracle added that by 2025 80% of IT budgets will be spent for cloud, but not traditional IT systems, almost all new applications will become the SaaS-applications, and in the next 10 years investments into cloud infrastructure will grow at high rates.

This transformation of IT will have far-reaching effects. The number of corporate data centers will be reduced by 80%. Such DPCs will remain only for support of legacy IT systems. In turn, the similar shift will promote redistribution of IT budgets from service and support of IT on an innovation. "If all this occurs by 2025, then 80% of IT budgets of CIO will spend for innovations, but not for support, - Mark Hurd considers. - Clouds will change economy of IT". Cloud providers will focus attention on reduction in cost and simplification of the offers. And customers will have new opportunities for innovations, an output of new products to the market and profit increase.

Gartner: The forecast of growth of the market for 16% in 2016

In 2016 the companies around the world will spend $204 billion for public cloud services. It is 16.5% more, than in 2015 ($175 billion), Gartner predicted. For comparison, the world market of IT in general in 2016 should grow by only 0.6%[9]. Thus, the growth rate of the market of public cloud services by 27.5 times exceeds growth rate of IT market in general.

The largest growth as expect in Gartner, will show a "infrastructure as service" segment (Infrastructure as a Service — IaaS). According to the estimates of analysts, in 2016 growth of this direction in terms of money will be 38.4%. Cloud advertizing — the largest segment of the world market of cloud services — will show 13.6 growth in 2016 and will reach $90.3 billion. Whereas IaaS segment volume — $22.4 billion.

Universal market of public cloud services (volume) of Gartner
Universal market of public cloud services (volume) of Gartner
Universal market of public cloud services (growth) of Gartner
Universal market of public cloud services (growth) of Gartner

IDC, in turn, call the largest segment "the software as service" (Software as a Service — SaaS). It is supposed that in the next years on this type of cloud services it is necessary more, than two thirds of all market in terms of money. At the same time the annual growth rate of an IaaS segment, according to IDC, will average 27% during the period from 2015 to 2019, and a "platform as service" segment (Platform as a Service — PaaS) — 30.6%.

Cloud-services market share
Cloud-services market share
 
2016 Magic Quadrant for Cloud Infrastructure as a Service
2016 Magic Quadrant for Cloud Infrastructure as a Service

Market trends:

  • More and more workload of the enterprise passes into a cloud
  • The cost of clouds decreased, but there are expense optimization problems
  • Security any more main problem of a cloud
  • Significant growth in hybrid clouds. Emphasis on multivendor.
  • Open Source use
  • Rapid distribution of technologies of containerization and DevOps
  • Growth of use of cloud platforms of OpenStack. Interest in Bare-metal cloud
  • The automated software-defined DWH (Software Defined Storage)
  • Networks of new generation are under construction on  a joint of clouds, SDN (Software-Defined Networking) and  NFV (Network Functions Virtualization) today

IDC:

  • K of 2017 of 35% of all applications will be unrolled in a cloud
  • Revenue from public cloud services will grow for 22.8% a year within the next several years that in 6 razvysha of growth rates of traditional IT products.

Cloud benefits
Top barriers to moving IT-services to the cloud
Top barriers to moving IT-services to the cloud
Usage of cloud-based IT-services
Usage of cloud-based IT-services

2015

Cloud business of Amazon, Microsoft, IBM and Google grows quicker than the market

In February, 2016 analysts of Synergy Research Group published results of a research of the world market of cloud services. Its volume as specialists found out, increases more slowly in comparison with growth rates of leaders.

According to Synergy Research estimates, the market of services for deployment of cloud infrastructures (including solutions IaaS, PaaS and also separate and hybrid cloud solutions) grew by 52% in 2015, having reached 23 billion dollars.

The largest cloud provider remained Amazon, written in an asset a market share in the amount of 31%. The following Microsoft and IBM strongly lag behind the leader, having 9-and 7 percent indicators respectively. The five of the best at the end of 2015 also included Google (4%) and Salesforce (4%).

Four largest cloud providers grow quicker than the market
Four largest cloud providers grow quicker than the market

As specialists note, Amazon continues to strengthen positions and to increase a share in the market in spite of the fact that competitors of Microsoft and Google grow much quicker. In October-December, 2015 their revenues in the market of cloud infrastructure services increased by 124% and 108% respectively while business of Amazon increased by 63%. Besides, IBM showed rise for 57%, Salesforce — for 40%. Four largest players control more than a half of the cloud market and[10] grow quicker it, the study says]

«
"Operators of the second echelon are either niche players, or suppliers of a broad spectrum of IT services, or the companies which have no big business, concentration and investment opportunities necessary for fight against the four of gipemasshtabiruyemy cloud providers. This second echelon includes Salesforce, Rackspace, Oracle, NTT, Fujitsu, Alibaba and HP Enterprise — the analyst of Synergy Research John Dinsdale notes.
»

Cloud business of Amazon is more, than at Microsoft, IBM, Google and Salesforce.com combined

On April 27, 2015 analysts of Synergy Research Group published some excerpts from the research according to which Amazon unconditionally is in the lead in the world market of public services, advancing Microsoft, IBM, Google and Salesforce.com combined.

According to the estimates of experts, in the first quarter 2015 the size of the market of the services intended for deployment of cloud infrastructures exceeded $5 billion where the share of Amazon (more precisely, its divisions of Amazon Web Services/AWS) made 29%. It is more than a cumulative indicator of presence of such large competitors as Microsoft, IBM, Google and Salesforce.com. As it is possible to see on the illustration provided by analysts, similar leadership of AWS took place and in 2014.

Dynamics of revenue growth of the companies in the market of cloud services

Dynamics of revenue growth of the companies in the market of cloud services

Experts of Synergy Research note that in this research they considered only cloud services, including solutions IaaS and PaaS and also private and hybrid clouds (sales of software and the equipment for cloud infrastructures were not considered). In 2014 the volume of this market was more than $17 billion, having increased by 45% year on year. Without a negative impact of a high rate dollar rise was measured by 48%.

The highest growth rates in the market of cloud services are shown by Microsoft — 96% in the first quarter 2015 of rather same period of previous year. The software giant predicts that in 2015 its cloud business covering such products as Office 365, Azure and Dynamics CRM Online, will reach the size of $6.3 billion.

On dynamics of sales increase of cloud services of AWS concedes not only to Microsoft, but also Google and IBM which in January-March, 2015 increased the volume of this business for 74% and 56% respectively. Income at Salesforce.com rose by 34%.

According to the analyst of Synergy Research Group John Dinsdale, six large suppliers of cloud services — AWS, IBM, Microsoft, HP, Cisco and Salesforce.com — can quite earn from the market more than $5 billion in 2015. At the same time each of these companies applies for leadership in different segments of the cloud industry, the expert noted.[11]

IDC about trends of cloud services till 2017

Analysts of IDC gave the following main forecasts in the field of cloud services for 2015 and further:

1. More than 65% of corporate IT departments till 2016 will take a sight on technology of a hybrid cloud environment that considerably will increase scope and rate of changes in IT departments of the organizations.

2. By 2017 20% of the organizations will see enough value in the standards and platforms advanced by communities open-source to accept them as strategic.

3. By 2017 25% of IT departments will provide official support of "the consumer level" to give the chance to employees to develop own automation of workflows.

4. By 2017 purchasers of IT will actively direct 20% of the IT budgets through industry clouds to provide flexibility of collective work, information exchange and commerce.

5. By 2016 more than 50% of the corporate IT departments building a hybrid cloud environment will buy the new or updated solutions of cloud administration differentiating workloads.

6. By 2018 60% of the SaaS-applications will use the new IaaS-functions offered separately at "microprices", introducing an additional innovation in "normal" services.

7. By 2015 65% of selection terms of corporate cloud loadings in global IT markets will be caused by need to observe laws on confidentiality of data.

8. 75% of proposals of suppliers of IaaS will be rebuilt, repositioned or abolished in the next 12-24 months.

9. By 2016 there will be a shift of IT budgets for 11% of traditional providing IT in the organization to different options of a cloud as new delivery pattern.

10. By 2017 35% of new applications will use continuous delivery by means of a cloud and the principles of DevOps for more rapid implementation of new features and an innovation of business.

2014

Data of IDC on the market of public cloud services

Analysts of IDC gave an assessment of volume and structure of the world market of public cloud services in 2014. Besides, specialists made the forecast in the horizon of 2018 (the forecast of November, 2014).[12]

According to assessment of experts, in 2014 universal expenses on public clouds reached $56.6 billion where revenue in the amount of $39.8 billion fell to the share of SaaS solutions. The rest of the market was divided by the products IaaS ($8.7 billion) and PaaS ($8.1 billion).

Experts explain domination of the SaaS segment with the fact that the main demand is concentrated on the market of public clouds around applications. At this PaaS and solutions in the field of cloud data storage are the most fast-growing categories thanks to increase in popularity of means of analytics of Big Data and Internet services for developers, said in the report of IDC.

According to forecasts of analysts, by 2018 the companies and consumers will spend about $20.3 billion for the solutions PaaS. SaaS where revenue will be measured $82.7 billion that more than will exceed IaaS sector (expected volume three times – $24.3 billion) will remain the largest segment of the market of public clouds.

Share of expenses on PaaS, SaaS and IaaS in the market of public cloud services, the forecast of IDC for 2014 and 2018
Share of expenses on PaaS, SaaS and IaaS in the market of public cloud services, the forecast of IDC for 2014 and 2018

Thus, in 2018 in the market of public cloud services investments in the amount of $127.5 billion will take place, and their size will increase on average by 22.8% a year by this time that is six times more than the predicted growth of global IT market. It is expected that in 2018 more than a half of an indicator of growth of expenses on the software, servers and storage systems in the world will fall to the share of public clouds.

This progress is promoted as vendors which regard as of paramount importance cloud strategy, and their clients who willingly implement new solutions. IDC consider that the industry of cloud services came to "the innovation stage" which will present a huge number of new products and will provide them additional value.

In process of development of innovations in the cloud market also the competition will amplify, and it, in turn, can lead to consolidation of the companies. For example, the largest producer of disk storages EMC is often mentioned by analysts and market participants as the potential purpose for absorption by vertical cloud suppliers, writes the EnterpriseTech edition.[13]

"This combination of rough innovations and the intensive competition will make 2015 important for the acting market leaders and those who aim at them" — the leading analyst of IDC Frank Gens considers.

Technology Business Research (TBR): Market of creation of private clouds

According to Technology Business Research (TBR), published in July, 2014, in 2014 the world market of private clouds should make $41 billion, and at annual average growth rate in 14% from will increase to $69 billion in 2018. According to Research and Markets, the annual average growth rate of the market of solutions for private clouds during 2013-2018 will be 22% (it is also the forecast of 2014).

TBR specify that the leading vendors in the world market of solutions for private clouds are the companies IBM Microsoft, HP and also Cisco, and at the last the level of customer satisfaction is higher though she offers also narrower ground solutions. Forrester in the research Forrester Wave published at the end of 2013 calls key suppliers of the market in addition to called above as well BMC Software VMware.

Forrester Research

Also, according to the research TMR if 30% of already working private clouds in 2013 were serviced independently, and 70% - at provider, then in the first half of 2014 this proportion made already 35% to 65% and further the number of independent implementations will only increase.

The large role in the market of private clouds continues to be played and solution providers of security as for most the companies (59%), specifies TMR, security is on the first place when using this model. For data, the market of solutions of security for cloud structures will grow from $2.1 billion in 2013 to $3.1 billion in 2015. In top-3 solutions for protection of cloud infrastructures security protections of e-mail, IAM (identification and access control) and also web security services, according to Gartner enter.

The European Union stimulates growth of costs for clouds

The purposeful policy of the European Union in the field of market development of cloud solutions will lead to the fact that expenses on public cloud services in this region will grow from 35.2 billion euros to 77.7 billion euros by 2020, according to IDC Removing Barriers to Cloud Computing in Europe Through Policy Action Could Generate up to[14].

Gabriella Cattaneo, the vice president of IDC EMEA, noted that migration towards new of IT of a paradigm will have a direct impact on economic growth in the European Union and also creation of new jobs. According to IDC if the government of the European Union takes a non-interference position on the market of cloud solutions, i.e. will give it an opportunity to develop freely, the contribution of this market to GDP of the European Union by 2020 will be 88 billion euros.

However, if the authorities of the Eurozone select option of more tough management of the market, it will generate up to 250 billion euros in GDP of the region by 2020 that is 162 euros more, than in the first scenario. The cumulative effect expected for the first and second scenario the period from 2015 to 2020 makes 357 billion euros and 940 billion euros respectively.

According to IDC, some legislative uncertainty, concern of potential users on the possible security level of services, economic effect, unevident for business, of transition to cloud model remain the main barriers to broad penetration of cloud services in the European market.

Besides, in the same row experts carry fears of users concerning a difference of cloud approaches at vendors, transparency and control, guarantees of data access. To it it should be added problems with support locally, including on local languages, low speeds of Internet connection in a number of regions and other factors.

Believe in IDC that overcoming these barriers from European Commission will require specific measures. In particular, it is necessary to lead to a uniform denominator the regulating standards in the field of data protection in the territory of all European Union, to develop the general standards for interaction of the cloud systems and also uniform security requirements of data for all providers irrespectively from what they are the countries. Also the all-European certification of cloud vendors regarding security accreditations and data protection which they can provide will be required.

Eurostat: Finland - the leader in number of the enterprises using cloud services

Survey conducted by statistical service of the Eurostat in December, 2014 showed that in Finland 51% of the companies use cloud services, it is the maximum level of distribution of cloud computing in Europe. Traditionally high rates in this sphere have also other northern countries – 39% of the companies in Sweden and 38% in Denmark resort to cloud services (these countries took the third and fourth places). From five countries of Northern Europe the worst result at Norway (28%), but also it is much higher than an average across Europe. And here to the second place according to the results of poll absolutely unexpectedly there was never Italy (40%), differing in special achievements in the field of ICT earlier. Average level of penetration of cloud services in the European Union is 19%. 150 thousand companies from 28 countries[15] participated in poll].

Experts consider the reason of special popularity of clouds in Finland strong tradition of outsourcing of IT services in this country. According to analysts of Gartner, the Finnish companies got used to buy services of the third-party companies, they have no high barrier in acceptance of this model. Industry experts consider the level of penetration of clouds in the country even higher: so, Pete Niyemaynen from Atea Finland company, provider of IT infrastructure, estimates it at 75% for Finland and 40% for other countries of Northern Europe. One of the reasons of it (that is confirmed also by analysts of Gartner) – wide circulation in Finland of services in the SaaS model which penetration reaches 90% and which form the most part of its market of cloud computing; in particular, according to Niyemaynen, in a cloud almost all work financial and HR-applications.

At the companies working with clouds, the most popular of services is that is quite predictable, e-mail, 66% of all such enterprises use it. By the countries their share is the highest in Italy (86%) and Croatia (85%). The second in prevalence service – cloud storage, 53% of the enterprises resorting to cloud services use it. Custodial services are most popular in Ireland (74% of the companies), Iceland (74%) and Great Britain (71%).

According to Eurostat, use other services less than a half dealing with clouds: a hosting of databases – 39%, office applications – 34%, financial or accounting software – 31%, the CRM system – 21% and computing powers for work of own software – 17% of the companies. It is interesting that indicators of Finland on types of services are very close to averages: 66% of the companies use e-mail, 54% – custodial services of data and 38% – databases.

The main factor limiting expansion of cloud services are security concerns, it was called by 39% of the respondents already familiar with clouds. On the second or third place – the high cost of cloud computing and uncertainty in their legislative regulation (on 32%).

The lack of knowledge of them remained a basic reason on which the enterprises do not pass to cloud services at all in 2014 (this reason was stated by 42% of the companies which are not using clouds); on the second place – risk of information leaks (37%). Among other called factors – uncertainty in where there are data (33%), uncertainty in legislative regulation (32%) and high cost of services (31%).

Forrester predicts rapid growth of the market of cloud computing

The Forrester Research analytical company predicts that from 2011 to 2020 the volume of the world market of "cloud" calculations will increase six times – from 40.7 billion dollars to, more than 241 billion. At the same time the cost of "a public cloud" (the applications and services delivered via the Internet) for the same period will increase even more – from 25.5 billion dollars to 159.3 billion dollars.

By 2020, according to forecasts of analysts of Forrester Research (data of May, 2014), the volume of the world market of cloud services will reach $191 billion. Let's remind that three years ago specialists spoke about $159 billion. The world market of platform services by 2020 will grow to $44 billion, and the volume of the sector of cloud business services will increase to $14 billion, the SaaS segment will reach $131 billion.

It is possible to refer to drivers of growth of the market of "clouds" also increase in number of the enterprises in which heads aim to improve adaptability without significant increase in costs, giving to mobile users more opportunities for work, combining functionality and the upgraded applications. Today more and more companies use cloud computing not as addition to IT infrastructure and as complete replacement to classical local solutions.

Part of the companies, however, does not hurry to go to "clouds" yet. Most often concerns of heads are connected with data security issues, performance and costs for integration. As for the first point, the most concerning question – where data will be stored as to many companies absolutely inadmissibly to store the internal data outside the country. Besides, not everyone still understands the principles of work, payments and are not sure of reliability of service. A part of consumers consider that cloud storages cannot guarantee them security of information. One more problem is the binding of clients to provider and complexity with Internet access of certain users. Yet cloud services are more profitable to clients, but with time and with the advent of new players in the market of these services, interest of consumers will increase. It will depend on reduction of prices and appearance of qualified specialists in the industry.

As for a question of the costs necessary for transition to cloud computing, it more difficult, than seems at first sight. Really, work in a cloud costs to the companies considerably cheaper, however expenses on migration, especially for the large companies, can be very essential.

2013

IDC overview of 5 subsegments of public cloud services

According to IDC Public Cloud Services Spending Is Being Driven by Enterprise Applications Solutions[16], in 2013 the world market of public cloud services reached $45.7 billion and as analysts predict, the annual average growth rate of this market till 2018 will be 23%. As the analyst of IDC Frank Gens commented, in the forthcoming years the market is expected by this fight for leadership and innovations. And digits of penetration grow in all 19 product categories into which IDC divides the market of public cloud services, and in all regions of the world. Final repartition of the market with establishment of the leading players is expected in the next 2-3 years.


Top-5 subsegments of the market of public cloud services

SegmentRevenue 2013, one thousand dollarsA market share 2013Growth in a year during 2013-2018
ERM(ERP) 10 780 24% 18%
CRM 8 135 18% 20%
Server solutions3,9819%26%
Applications of joint work3,3747%26%
Solutions for security2,9226%18%
Others16,55636%26%
Only45,748100%23%

IDC, 2014

In the market of public cloud services in 2013 72% of revenue were necessary on SaaS, on average throughout the period till 2018 this segment will grow for about 20% annually. The main tone in this segment is set by corporate solutions, including ERM, CRM and also solutions for joint work, the deposit of cloud services of security, systems management and cloud data storage is also noted. In 2013 entered into top three of a world SaaS segment (in decreasing order of a share) Salesforce.com, ADP and Intuit, on the fourth and fifth place were Oracle and Microsoft.

14% of the world market of public cloud services in 2013 were the share of a PaaS segment, annual growth is predicted even above here, than in SaaS – at the level of 27%. In 2013-2014 active use of solutions of data management and services of intermediate level for application servers will become the driver for this segment. In this segment are in the lead Amazon.com, Salesforce.com and Microsoft, and close the five of GXS and Google.

As for IaaS, the growth rate of this segment will be the maximum 31% a year, in 2013 its volume equaled $3.6 billion. Top five includes Amazon.com (40% of the market), RackSpace, IBM, CenturyLink and Microsoft here.

In a regional section of 68% of the world market of public cloud services in 2013 it was concentrated in the USA, 19% were the share of Western Europe. By 2018, according to forecasts of IDC, the share of the USA will decrease to 59%, and Western Europe – will grow to 23%.

Results of the research Parallels SMB Cloud Insights

Results of the research Parallels SMB Cloud Insights show growth of penetration of cloud services and cumulative rate of the annual growth (CAGR) of global market in 26%. According to forecasts of the company, by 2016 this market will reach 125 billion dollars USA.

  • Growth rates of the market of solutions for communications and joint work, the including corporate e-mails and virtual PBX, significantly advance other cloud market. They make 37%: from 4.8 billion dollars in 2012 to 6.5 billion dollars in the 2013th. It is expected that this market will reach 20 billion dollars by 2016;

  • IaaS services (infrastructure as service) create the second in growth rates market (27%): it will make 42 billion dollars by the end of 2016;

  • In mature markets now each SMB enterprise on average uses five cloud services. According to forecasts of the company, already to the 2016th them will be nine.

  • In 2013 global market of cloud services grew to 62 billion US dollars. It will continue the growth at the level of 26% by 2016 and will make 125 billion dollars;

  • In the USA the cloud market for small and medium business makes 24 billion dollars, the forecast now - annual average growth rate at the level of 17% to the 2017th. Drivers of this growth are cloud services of the joint communications and other business applications which growth was 32%. Rates of development of the cloud market of the USA, according to preliminary estimates, will reach 16% by 2017;

  • In Brazil analysts of Parallels predict growth of the market of SMB by 31%. It will reach 4 billion US dollars to the 2017th;

  • In Mexico growth rates of the cloud market for SMB will be 36%: from only 650 million US dollars in 2014 the market will come to 1.5 billion in 2017, confirming the status developing and one of the most fast-growing among the cloud markets of the world;

  • The market of cloud services of Russia is comparable by the sizes to the market of Mexico. In 2013 its volume was 633 million US dollars, CAGR - 32% at the expense of what by 2016 it will reach 1.7 billion dollars, also belonging to emerging markets of cloud services.

In the report of Parallels SMB Cloud Insights cloud services for SMB are separated on four key categories: infrastructure as service (IaaS), services of web presence and web application, solution for communications and joint work and also cloud business applications (SaaS). About the moment of a release of the previous report in it such services as cloud servers (to category IaaS) and new popular applications for communication and joint work because of what this category is called "The joint communications" now were added.

The research Parallels SMB Cloud Insights includes reports on 14 countries: Great Britain, France, Spain, Germany, the Netherlands, Poland, China, India, Japan, Australia and Russia and also general reports on such regions as Europe and Southeast Asia.

SAP: By 2016 70% of CIO will consider transition to clouds task No. 1

By 2016 more than 75% of all new expenses on IT will be connected with cloud services, more than 70% of CIO will consider transition to a cloud solution strategic task No. 1, and more than 80% of decisions in the field of IT will be made together with heads of the business directions — perspectives of market development of cloud services (data of SAP of December, 2013) are like that. Growth of the cloud market advances universal level in Russia: according to forecasts of IDC, the domestic market of cloud services will grow much quicker, than IT market in general, and by the end of 2016 the volume of this segment will be more than 460 million, and annual average growth rate — more than 50%.

2012

Market of cloud services of $40 billion

According to IDC company, total market of cloud services will grow from about 40 billion dollars in 2012 to 98 billion dollars in 2016. This digit consists of forecasts for growth of services in providing the software to 37 billion dollars (SaaS), to growth of infrastructure services to 30 billion dollars (IaaS), to development of services of infrastructure software to 20 billion dollars and to growth of services in providing the platform (PaaS) to 10 billion dollars by 2016.

Service of the cloud systems: personnel problem

In the Russian personnel market the number of the vacancies connected with cloud computing during the period from 2012 to 2015 will grow by 158% up to 162.4 thousand people. It is said in joint survey of IDC and Microsoft where similar estimates and over other world countries are given.

According to researchers, development of cloud services by 2015 the worker of places will create in the world personnel market 13.8 million, i.e. their number will double – from 6.7 million in 2012. From them 6.8 million jobs is necessary only to China (4.6 million) and India (2.1 million). On the third place on this indicator there will be USA (1 million jobs), on the fourth – Indonesia (915 thousand places).

IDC, 2012

On number of the specialists employed in the cloud sphere among the countries which entered a research, Russia will appear in 2015 on the 12th place from 28. The top ten in addition to China, India, the USA and Indonesia at the same time included also Brazil, Japan, Germany, Great Britain, Mexico and Korea.

Researchers explain a phenomenon of China and India with that circumstance that many enterprises in these developing countries "are still young", and, therefore, are not encumbered with need of service of legacy IT infrastructure. Therefore adaptation of cloud computing in these markets goes the accelerated rates.

In a research it is said that 75% of expenses of the enterprises are spent for service of legacy systems. Also in the markets of developing countries the model of a private cloud will prevail over public cloud deployments.

File:IDC Cloud jobs White Paper.pdf

See Also: of the IT personnel

2011

The forecast of Forrester for the market of public clouds till 2020

In April, 2011 the Forrester Research analytical company published the forecast of market development of public cloud computing till 2020. According to data of the report, by 2020 the volume of the cloud market will be $241 billion that for $200 billion it is more, than in 2011.

Among the most interesting conclusions of the report it is necessary to mention the forecast that the peak of the IaaS market is necessary for 2014 when its volumes reach $5.9 billion. After that the market will gradually contract in connection with satisfaction of demand and increase of the competition.

As for the SaaS segment, he will experience steady growth: if in 2011 its volume is $21.2 billion, then in 2016 it will reach a point of $93 billion. At this moment the SaaS segment will be close to saturation. As for the PaaS market, its volumes will remain rather small in comparison with SaaS though in 2014 the PaaS segment will exceed on IaaS volume. Besides, analysts of Forrester Research foretell that the market of means of virtualization will also gradually contract in connection with their substitution by newer technologies.

Forecast of growth of size of the market of cloud computing for segments


Forrester Research, 2011

It is remarkable that the BPaaS segment which today not all agree to carry to cloud computing according to forecasts of Forrester Research, by 2020 will exceed a traditional segment of infrastructure cloud services IaaS and will approach a PaaS segment. The main growth of BPaaS is necessary for the period from 2015 to 2020.

SMB are drivers in consumption of clouds

According to IDC company, in 2011 costs for "cloud" services grew four times quicker, than all IT market.

On Parallels Summit 2012 last on February 14-16, 2012 the Parallels company provided own research of consumer capability of medium and small business (SMB) to Orlando (USA) as main consumer of cloud services. The research continues a series of the reports explaining why Parallels and service providers should focus on development of services for SMB. As confirmation serves the fact that most SMB will double consumption of cloud services in the next three years.

There are some these researches SMB Cloud Insights:

  • SMB is still the driver of growth of the market of cloud services: in 2011 SMB of the USA consumed cloud services 25% more, than in 2010, having brought market size to $15.1 billion;

  • Global market of cloud services will increase by 26% (CAGR) from $34 billion in 2011 to $68 billion by 2014;

  • In 2011 SMB spent $14 billion for an infrastructure hosting (IaaS – virtual and dedicated servers, lease of virtual machines); $7 billion - on services of ensuring presence at the Internet (web presence – domains, the websites SSL, widgets for online stores); $4 billion – on services of communications and joint work (mail, email security and archiving, lease of telephone exchanges, including PBX and VoIP); $9 billion - on business applications (SaaS -content management systems, file sharing, accounting, recovery and backup CRM HR, payroll);

  • 75% of the companies with number of employees less than twenty rent the IT infrastructure already now, but do not support it independently;

  • SMB consume much more, than just services of ensuring presence at the Internet (web presence): 45% of SMB in the USA use pages on Facebook for promotion of the business. It is a signal to service providers to inclusion in a packet of web presence of vertical cloud services, such as presence at social media, content management and customer relationship management (CRM);

  • Within the closest three years of SMB are going to increase consumption of paid cloud applicaions twice. The demand pattern on applications will strongly depend on the size of the company: microbusinesses and the small companies are interested in backup applications, file sharing, accounting and archiving of mail while medium-sized enterprises need, for example, more services of conference calls. According to forecasts of experts, volumes of use of services based on cloud solutions will grow also in other segments of the market. For example, according to data of recently published research of Cisco company within which the forecast of development of global mobile traffic for 2011-2016 is provided, it is noted that because users of mobile communication services feel the increasing need for receiving content "on demand", the volume of the "cloud" traffic transferred on mobile networks will increase by 2016 by 28 times, and annual average rates of its growth will be 95%.

Symantec: Clouds of evolution of IT in the financial sector

Financial institutions in Europe are more involved in process of adaptation of new information technologies, including virtualization, clouds and mobile technologies, than the company of other industries. Besides, banks and EMEA insurance companies locate also sufficient budgets on IT for such experiments.

Experts of Symantec company came to such conclusion during the new research under the name Evolution of IT in the Finance Industry 2011. Within the research among the companies of the region survey was conducted, and it became clear that 81% of financial structures really discuss implementation of cloud computing, in other industries this indicator - only 70%.

Question: in what stage your organization in each of the offered areas? (poll among the companies of the financial sector)

Source: Symantec, February, 2012 

Also financial institutions of EMEA are more advanced in questions of use of virtualization, than cloud computing: 60% of financial institutions or apply, or already applied virtualization of servers, in other industries this indicator - 45%. However this sector is more reserved in questions of private/hybrid clouds – only 17% of respondents are going to move crucial applications to hybrid/private clouds in the next 12 months.

Budgets of financial structures are ready to virtualization and cloud computing: in this sector more survey participants noted that in their companies there is the corresponding budget for virtualization and private/hybrid clouds, than in other industries.

Security issues remain one of the main factors at decision making about implementation of virtualization. 64% of financial companies which noted that they are not going to pass into hybrid/private clouds selected security as a basic reason. It brightly contrasts with survey results of representatives of other industries where only 31% gave similar answers.

Results of a research also speak about existence of an imbalance meanwhile what financial structures expect from these technologies, and their real opportunities, the report says. The most striking example is Private Storage-as-a-Service service which reflected all signs of non-mature market. Expectations in issues of virtualization of servers where the most part of finance corporations really achieved increase in flexibility, reliability were the most real and reduced transition time by new servers.

Cisco estimates growth of cloud traffic

Cisco is engaged in studying of growth of cloud traffic of data. In November, 2011 Cisco published the first research report of global trends of development of cloud computing - the Global index of development of cloud computing during the period from 2010 to 2015 (Cisco Global Cloud Index (2010 – 2015). It contains the forecast that by 2015 the annual volume of "cloud" traffic will increase by 12 times with the 130th exabyte up to 1.6 zettabyte, and annual average rates of its growth will be 66 percent.

One zettabyte is equal to one sekstillion of bytes or one trillion gigabytes. The volume of traffic is 1.6 zettabyte is:

  • 22 trillion hours of stream music;
  • 5 trillion watch of business web conferences with webcams;
  • 1.6 trillion hours of on-line video flows of high resolution (HD).

The cloud became the most fast-growing segment of traffic in the data processing centers (DPC). By 2015 the cumulative annual volume of traffic of DPC will increase by 4 times up to 4.8 zettabyte, and annual average growth rates of this traffic will be 33 percent. Now the share of "cloud" traffic in the general traffic of DPC makes 11 percent. By 2015 it should exceed 33 percent. Thus, the cloud purchases crucial value for the future of information technologies and also for delivery of video and content.

Transition to cloud services forces global cloud traffic grow at the rates twice exceeding growth rates of global traffic of DPC. During the period from 2010 to 2015 global traffic of DPC will grow for 33 percent a year and will increase four times whereas global cloud traffic grows for 66 percent a year and for the same period will increase by 12 times.

The annual average growth rate of traffic in network will be 66% - from the 130th exabyte up to 1.6 zettabyte which are equivalent to 22 trillion hours of reproduction of music or 5 trillion watch of web conferences with the webcam, or 1.6 trillion hours of stream HD video online. "Cloud" - the most fast-growing component of traffic of data processing centers which in itself will grow four times and by 2015 will reach 4.8 zettabyte, the Cisco company reported.

According to its data, today cloud traffic makes 11% of traffic of data processing centers. At the same time by 2015 it will make more than 33% of total amount. Expansion of means of virtualization and economy by the enterprises at scales of data will become key factors for transition to "cloud". Cloud DPCs offer higher performance, improve use of data and facilitate management in comparison with traditional data processing centers.

By 2015 76% of traffic of data processing centers will be created by DPCs as the workloads moving between different virtual machines and background tasks taking place. 17% of total amount of traffic is necessary on delivery of information to end users, and another 7% will be generated in the course of exchange of data processing for gain of performance of "clouds", replication of data and updates between centers.

However, according to Cisco, in connection with increase in demand for services of consumer video, traffic "DPC – the user" will have considerable surges in activity. The average volume of traffic of DPC per hour during the peak periods as expected, will increase by 2.5 times that will demand planning of additional capacities, both data processing centers and "cloud", and network. At the same time in Cisco consider that the model of service "a cloud on demand" is optimized for unstable demand of this kind.

All this means that use of clouds technologies will grow in comparison with traditional data processing centers. In 2010 loadings in 21% fell on cloud DPCs. 79% are processed in traditional DPCs. 2014 will become the first year when the balance of loading is displaced towards a cloud, Cisco stated.

At the same time 51% of total amount of workloads will be in a cloud environment and 49% - in traditional IT space, consider in the company. According to data of Cisco, workloads of DPC from 2010 to 2015 will increase almost three times while cloud loading in the same time frame will grow more than semikratno.

The research covered all regions of the world and according to it, taking into account such factors as existence of broadband access, average speed of loading and unloading, average time of a delay - the Pacific Rim, the Middle East and Africa, Western Europe, Central and Eastern Europe, Latin America and North America are ready to use of basic applications of cloud computing, such as social networks and web conferences now.

For cloud applicaions, such as video chat and stream video of high definition, average capacity of networks it is considered sufficient to support these services in the Pacific Rim, Western Europe, Central and Eastern Europe and North America. However, according to assessment, any region has a possibility of support no "advanced" cloud applicaions, such as video conferences in the mode of HD video and the developed game applications. Nevertheless, in some countries of each region, such as South Korea and Japan, now these services can be implemented, Cisco states.

The research Cisco - Global Cloud Index, is based on modeling and the analysis of the different main and minor sources. It included results of exchange more than 30 Tb of the data transferred every month within a year, between different data processing centers worldwide. More than 45 million tests of speed of broadband communication were carried out, also third-party forecasts of the market are used.

Development of cloud computing in France

Leaders in development of cloud computing and services in France are:

ATOS created Yunano - it is joint venture with the Chinese company Ufida. Together they will release in the mode of "cloud service" the software for management and also to sell the services connected with it.

The Systancia company is the French software maker working in Alsace and in the capital region Ile-de-France. It is one of the European leaders in transformation of the user programs into cloud services (virtualization of applications and a workplace).

The new players appearing in France enter on the market which provides them the conditions stimulating to development. The French legislation provides reliable data protection and their processings; and the legislation of relative coding of data (L 2004-575 from 6/21/2004 and D 2007-663 from 5/2/2007) allows to take, in particular, into account degree of privacy of the data entrusted by the player.

The Joyent company located in the region Ile-de-France since 2010, delivers infrastructure of services (IaaS) to such companies as LinkedIn, Disney, CNN, Facebook, Yahoo or Vente-privee.com. Also she delivers the PaaS platforms with the open code for publishing houses, hostings, or the specialized companies (Dell, First service). This company startup is a pioneer in the field of "cloud" applications, and it competes with such groups as Amazon EC2 and Microsoft Azure. The Dell company signed in 2010 the agreement (The supplier of the original equipment) with Joyent to use its application "Smart Technologies". It allows Dell to offer clients turnkey "cloud" applications from own servers.

Eight clusters (competitiveness zones) located in France are engaged in "cloud" applications today:

  • Cap Digital et System@tic (region Ile-de-France),
  • Elopsys (region Limuzen),
  • Images et réseaux (Brittany and Earth across Loire),
  • Imaginove et Minalogic (Rhone-Alps),
  • Solutions Communicantes Sécurisées (регион PACA),
  • TES (Lower Normandy).

In 2011 the French government held the first competition on the right to execute the research project in the field of "cloud" applications within "The program of investments into the future". In total five projects (19 million euros) will be able to use the state support:

  • platform of software engineering (CloudForce project, Orange Labs companies),
  • carriers of applications (CloudPort project of Prologue company),
  • high-performance project of program infrastructure (Magellan project of Bull company),
  • the clouds project for communities (Nu@ge of Non Stop Systems company) and
  • the project of cloud applicaions for institutions of the higher education (the UnivCloud project of INEO company).

The website www.investirdanslenumerique.fr was created by the French Association of software makers (AFDEL) to facilitate the procedure of submission of documents on creation of the project.

2010: $74 billion are spent for public cloud services

As stated in the report of Gartner (October, 2011), in 2010 $74 billion were spent by the companies for public cloud services that made only about 3% of the general indicators of their expenses on IT In 2012 of the enterprise will spend $2.7 trillion for IT. In EMEA region the most advanced in terms of implementation of technologies of cloud computing and virtualization is the financial sector.

Income of the world market of "cloud programming" and the connected services reached 68.3 billion dollars in 2010.

In Europe the market of "cloud" services grew by 20% in 2010. "Cloud" services can reach a share in 15% of all European software market and the connected services by 2015.

The French market of "cloud applicaions" in 2010 reached 1.85 billion euros from which 672 million euros it was the share of the enterprises of small and medium business. Thanks to rapid growth of this market, its volume in 2012 should exceed 2 billion euros: it will make, perhaps, 6% of all French software market and the connected services (by estimates of Nexima company).

Cm. also



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  12. IDC Forecasts Public IT Cloud Services Spending Will Reach of $127 billion in 2018 as the Market Enters a Critical Innovation Stage
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  14. of €250 Bn EU GDP Growth in 2020, says IDC
  15. [http://www.iksmedia.ru/news/5196547s2750534.html the Most "cloud" country of Europe
  16. , According to IDC