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Vendors Remove Complexity to Win the Multi-Cloud War

Why are savvy CIOs and CTOs so focused on Hybrid IT infrastructure solutions? More enterprises are moving to hybrid and multi-cloud environments. According to the latest worldwide market study by 451 Research, the cloud services market will reach $53.3 billion in 2021, that up from $28.1 billion this year.

The latest global survey found that cloud service adoption is now mainstream, with 90 percent of organizations surveyed using some type of cloud service. Moreover, analysts expect 60 percent of workloads to be running in some form of hosted cloud service by 2019 -- that's up from 45 percent today.

Cloud Services Market Development

This represents an ongoing pivot from DIY owned and operated on-premises IT, to a combination that includes cloud or hosted third-party IT services. 451 Research finds that the future of IT is multi-cloud and hybrid with 69 percent of survey respondents planning to have some type of diverse environment by 2019.

That being said, the growth in multi-cloud and hybrid cloud will make optimizing and analyzing cloud expenditure increasingly difficult. That's why multi-cloud brokerage and service management capabilities are as important as assessing the individual cloud service cost components.


"Cloud buyers have access to more capabilities than ever before, but the result is greater complexity. It is a nightmare for enterprises to calculate the cost of computing using a single cloud provider, let alone comparing providers or planning a multi-cloud strategy," said Dr. Owen Rogers, research director at 451 Research.

Flexibility has become the new pricing battleground over the past three months. 451 Research analysts believe there will be a market opportunity for cloud vendors that can resolve this complexity, giving enterprise users simple and low-cost prices -- similar to how consumer energy suppliers abstract away the complexity of global energy markets.

Outlook for Cloud Services Growth

The latest market data finds that the cloud computing as a service market is expected to grow by 27 percent to $28.1 billion in 2017, when compared to 2016. With a five-year CAGR of 19 percent, cloud computing as a service will reach $53.3 billion in 2021. Plus, the overall outlook is very bright.

451 Research noted that infrastructure as a service (IaaS) will account for 57 percent of cloud computing as a service revenue in 2017. Their analysts forecast that ISaaS will see the fastest growth through 2021 with a 21 percent CAGR, while Integration PaaS will be the fastest growth sector within the PaaS marketplace with a five-year CAGR of 27 percent.

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