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

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

How Ride-Sharing Apps Changed Local Transport

Building on significant advances in disruptive mobile app technology, ride-sharing services have emerged to become a popular means of urban mobility. This is unsurprising given the advantages of ride-sharing options over traditional transport modes, such as buses and more expensive taxis. Innovative ride-sharing platforms enable app users to customize their journeys according to real-time phenomena, such as nearby traffic conditions, time of day, and rider demand. However, this is not to say that ride-sharing services are perfect. The popularity of ride-sharing has resulted in some additional traffic congestion in major cities already struggling to control this issue, while the widespread disruption caused by the pandemic affected most stakeholders within the local transportation value chain. Ride-Sharing App Market Development According to the latest worldwide market study by Juniper Research, ride-sharing spending by consumers globally will exceed $937 billion by 2026 -- that's c