Skip to main content

Why Private Cloud Adoption will Reach 85% by 2018

Just published, the Private Cloud Customer Research report for the first-quarter of 2015 estimates that the private cloud computing market will grow from about $45 billion this year to a forecast $80 billion by 2019.

According to the findings from a worldwide market study by Technology Business Research (TBR), more than half of the enterprises surveyed are already using some form of private cloud computing solution.

This rate of adoption is expected to reach 85 percent by 2018, because the survey respondents perceive private cloud as more secure than public cloud offerings -- making private cloud the most adopted hybrid IT solution for commercial IaaS and PaaS requirements.

TBR believes that private cloud computing adoption is the intersecting point between hybrid outcome-based adoption and public technology-focused adoption. Besides, enterprises are beginning to favor self-built cloud services to provide increased IT control and more centralized purchasing.

"Private cloud adoption is on the rise, but increased demand for data analytics and Internet of Things (IoT) solutions -- and the shift toward hybrid IT buying -- is cannibalizing enterprise cloud budget allocations, said Cassandra Mooshian, cloud analyst at TBR.

According to the TBR assessment, proven security expertise is likely to become a key point of differentiation for cloud infrastructure providers. Open source software vendors with the best overall security offerings are expected to be well positioned to capture more of the new private cloud growth through 2018.

That said, this study shows that private cloud computing users are most concerned about security and data ownership, and almost 60 percent of survey respondents claim security is their number one concern when considering cloud service adoption.

TBR's market analysis uncovered that the IT vendors with broad experience in software DevOps, consulting services and enterprise security practices are best positioned to capitalize on upcoming private cloud computing growth opportunities over the next two years.

Moreover, IT is involved in nearly 70 percent of private cloud computing purchasing decisions due to these security concerns. Line of Business (LoB) leaders will gladly involve IT organizations that are qualified to address their evolving requirements for open hybrid cloud solutions.

"Security is the decisive area in which vendors must message their superior capabilities loudly and clearly, while showcasing their customer success stories," said Mooshian.  Note; for this study, TBR surveyed over 2,200 purchasing decision makers within large enterprises across North America, Western Europe and the emerging Asia-Pacific regions.

Popular posts from this blog

Linux Phone Standards Forum

A new Linux Phone Standards Forum (LiPS) has been founded to promote mass market adoption of Linux telephony terminals through standardization, interoperability testing and market education. The founding members include Cellon, France Telecom, FTM Labs, Huawei, Jaluna, Mizi, Open Plug and PalmSource. LiPS will support device manufacturers and operators in bringing to market Linux-based devices at lower cost (due to lower deployment costs through standardization), while facilitating the programming and development process for software and silicon vendors. The Forum said plans to work with other organizations such as the OMTP and OMA to identify requirements of distinct device categories including smartphones, feature phones, fixed-line, or converged devices. For each of these categories, or profiles, LiPS will define standard API�s that support relevant applications and services as well as a certification process for technology providers. In keeping with the open source philosophy, L

Cloud Services Gain New Momentum in Europe

Across European nations, more CIOs and CTOs are investing in public cloud services that become the essential foundation for the design and delivery of innovative digital transformation projects. Public cloud computing spending in Europe will reach $113 billion in 2022 and will double to $239 billion by 2026, growing at a 22 percent 5-year CAGR, according to the latest market study by International Data Corporation (IDC). Investments in Software-as-a-Service (SaaS) will continue to lead most of the spending in Public Cloud in Europe in 2022, but Platform-as-a-Service (PaaS) will be the fastest-growing segment. In fact, PaaS enables digital business deployment via the quick testing and production of new software applications. Public Cloud Market Development Professional services, banking, and discrete manufacturing will be among the top spenders in public cloud services, absorbing almost 60 percent of the overall public cloud services spend in 2022.  Human-centric industries are adjustin

Strategic Digital Transformation Spending Trends

Looking ahead, many Chief Executive Officers (CEOs) continue to selectively invest in new strategic digital transformation projects that enable a significant competitive advantage. Some additional investments may go towards improving existing IT infrastructure and operations.  Worldwide IT spending is now projected to total $4.5 trillion in 2022 -- that's an increase of 3 percent from 2021, according to the latest updated estimate by Gartner. For now, most CIOs will be relieved that their budget is safe from major cuts. While IT spending is expected to grow in 2022, it will be at a slower pace than in 2021 -- partly due to a 5 percent cutback on spending for personal computers, media tablets, and printers. Digital Transformation Market Development "Central banks around the world are focusing on fighting inflation, with overall inflation rates expected to be reduced through the end of 2023. However, the current levels of volatility being seen in both inflation and currency exch