Skip to main content

Cloud Infrastructure Spending will Reach $36.8 Billion

The migration of IT workloads to public cloud service providers continues in 2015. Meanwhile, the forward-thinking enterprise CIOs are making plans to transform their data centers to accommodate the applications they intend to keep.

Maturation of cloud computing infrastructure and demand for sustainable benefits will drive the marketplace for new hardware and software components to a 14 percent CAGR from 2014 to 2018 -- reaching $36.8 billion -- according to the latest market study by Technology Business Research (TBR).

"Customers are increasingly integrating public and private cloud resources into day-to-day, mission-critical workloads and processes," said Krista Macomber, analyst at TBR.

However, TBR believes that securing, managing and integrating these complex heterogeneous cloud environments is very challenging.

For cloud components vendors, this means embracing more systems integrator partners and expanding their adoption of popular open-source cloud management tools are likely to be necessary steps to maximizing long-term growth opportunities.

Although low-cost, high-volume hardware vendors and legacy virtualization software providers have led cloud components opportunities in recent years, TBR says enterprise customers are beginning to increase their spend on operations management and security software -- as they complete their deployment of hybrid cloud environments.

As a result, vendors such as Cisco, HP and IBM that are driving toward a software-defined, open-source, multi-platform cloud components strategy are posting leading year-to-year growth rates and expanding revenue bases.

"IBM is a great case study in cloud components revenue trends. Plenty of opportunity remains for vendors to sell open and flexible hardware into a slew of cloud customer bases ranging from cloud service providers to small businesses. However, IBM has chosen to exit the x86 server space," Macomber explained.

Moreover, TBR reports that IBM continues to struggle with financial turbulence that will be troubling for multinational enterprise customers and channel partners that both seek signs of future stability, following the ongoing decline of IBM's legacy hardware and software business units.

While some vendors will choose acquisitions and organic development to round out their portfolio gaps, others will lean more heavily on partners to more quickly and cost-effectively fulfill end-customer requirements for open-source solutions that help to avoid vendor lock-in.

For all vendors, the TBR market study findings indicate evolving channel programs and restructuring direct sales or professional services teams -- to articulate cloud workload knowledge and DevOps culture expertise -- are critical to a vendor's ongoing success.

Popular posts from this blog

How WLAN Transforms Industrial Automation

The industrial sector is on the eve of a wireless transformation, driven by an urgent demand for greater network capacity, reliability, and deterministic performance. Historically, manufacturers and mission-critical operations have relied on wired networks — favoring their predictability — because spectrum congestion in legacy 2.4GHz and 5GHz bands limited confidence in wireless for operational technology (OT) environments. However, with the introduction and rapid adoption of the 6GHz spectrum, compounded by significant advances in Wi-Fi standards, industrial facilities are now poised to embrace wireless LANs as the backbone for automation and digital innovation. Industrial WLAN Market Development Recent research from ABI Research forecasts that over 70 percent of industrial-grade wireless LAN access points (WLAN APs) shipped in 2030 will support the 6GHz band. This is a leap from 2 percent in 2023, highlighting a rapid and profound technological shift. The market for ruggedized indust...