Skip to main content

Hosted Private Cloud Market will Reach $39B in 2019

The leading public cloud computing service providers will gain the lion's share of all cloud-related revenue, but there are still market development opportunities for hybrid scenarios -- where combinations of public and private cloud can be justified.

The hosted private cloud market will continue to grow at a low-double-digit CAGR through 2019, reaching $39 billion, according to the latest worldwide market study by Technology Business Research (TBR).

Widespread enterprise adoption of cloud solutions will drive steady revenue growth for vendors across all cloud computing segments -- particularly for hosted private cloud vendors that offer the flexibility of public clouds with the added layer of implied security from a hosted private cloud.

"Security is a driver and a barrier of hosted private cloud adoption and will greatly affect the private cloud landscape through 2019," said Cassandra Mooshian, cloud analyst at TBR.

TBR believes that the best case scenario for hosted private cloud vendors is that customers favor the added security benefits of a hosted private cloud environment over a public cloud environment.

The worst case is yet another large-scale security breach that compounds lingering security concerns and leads to a halt in cloud computing adoption. That's unlikely, given that most reported breaches are the result of traditional enterprise IT security failures.

According to the TBR assessment, the mix of IaaS to SaaS in hosted private cloud being weighted more heavily to IaaS suggests enterprises are bringing their own software application licenses to vendor IaaS solutions.

This indicates an opportunity for some vendors to capitalize on by bringing traditional software to cloud environments for their enterprise customers that are not ready to restructure their software consumption patterns but want to exploit cloud economics to reduce costs.

Data center hosting experts, such as IBM, could benefit from this added hosting opportunity, while it may be more difficult for legacy software providers, such as Oracle, to transition their software licenses to subscriptions in private cloud scenarios.

That being said, the throng of me-too vendors that are already offering OpenStack infrastructure platforms must find a way to differentiate their product. Today, that value-add typically means providing professional services to help overcome the known inherent complexity in these IaaS software deployment projects.

Popular posts from this blog

Hybrid Work: How to Enhance Employee Productivity

When you hire qualified talent for a key role and trust them to perform, you'll likely achieve the best outcome. Skilled and experienced people will deliver results, regardless of the challenges. That's a key lesson learned from the pandemic experience as most knowledge workers were asked to work from their homes. However, some resist returning to an open-plan office. It's unacceptable. Meanwhile, forward-thinking leaders decided a "return to normal" is undesirable, and in hindsight, everyone should aspire to be more accomodating than before. Therefore, location flexibility is okay. Hybrid Workforce Market Development How will people adapt to these changes? They'll apply the modern IT tools at their disposal. They'll learn new skills and thrive. Nearly 80 percent of employees are now successfully using online collaboration tools for work in 2021 -- that's up from just over half of workers in 2019, according to the latest market study by Gartner. This g

Mobility-as-a-Service Creates Disruptive Travel Options

Building on significant advances in big data, analytics, and the Internet of Things (IoT), more innovative transit service offerings aim to increase public transport ridership and reduce emissions or congestion within metropolitan areas. By providing these services through smartphone apps, the transit services also significantly increase user convenience, providing information on different human mobility offerings -- including public transport, ridesharing, and autonomous vehicles. Mobility-as-a-Service Market Development According to the latest market study by Juniper Research, Mobility-as-a-Service (MaaS) subscribers will generate $53 billion in revenue for MaaS platform providers by 2027 -- that's rising from $5.3 billion in 2021. Let's start with a basic definition. MaaS is the provision of multi-modal end-to-end travel services through single platforms, by which users can determine an optimal route and price. The study identified a monthly subscription model as key to incr

Upside for New 5G Network Transport Infrastructure

The global mobile communication sector is in the midst of a significant network infrastructure upgrade to support the introduction of new high-bandwidth and low-latency broadband service offerings.  Telecom service provider data centers have an important role in fifth-generation (5G) network deployments. Providers undergoing their transition to Stand-Alone (SA) 5G must understand the technical demands of telco data centers and the key enablers of those offerings. According to the latest worldwide market study by ABI Research, the major prerequisites of 5G and the emerging transport solutions would help operators position themselves to successfully capitalize on the new revenue opportunities from delivering differentiated 5G connectivity services. 5G Transport Network Market Development "The rise of the telco data center has a high degree of confluence with the requirements of SA 5G architectures. SA 5G and its increasing reliance on telco data centers can be attributed to the incr