Digital Lifescapes

Private cloud services are gaining new momentum, partly due to the demand for hybrid IT solutions on-premises. 451 Research predicts that IT vendors with OpenStack private cloud revenue will exceed revenue from service providers with OpenStack-based public cloud implementations in 2018. From a regional perspective, deployments in China and the Asia-Pacific region are now growing faster than in the rest of the world. While not the primary driver, a contributing factor is the Chinese government advocating for OpenStack deployments. Private Cloud Market Development According to the latest worldwide market study by 451 Research, OpenStack revenue will exceed $6 billion by 2021, as it experiences a growth rate of 30 percent CAGR. Moreover, OpenStack is benefiting from the increase in hybrid cloud environments with 61 percent of the enterprises surveyed utilizing a hybrid IT approach. Certain industry verticals and regions that are less enthusiastic about exclusively using hyperscale...

Data center server virtualization and cloud computing requirements are evolving. More CIOs and IT managers will be deploying Linux container based solutions in 2017, as the market matures and the vendors gain new momentum with their go-to-market strategies. The market will grow from $762 million in 2016 to $2.7 billion by 2020, according to the latest worldwide market study by 451 Research. Despite making up a relatively small portion of the overall Cloud-Enabling Technologies (CET) market, application containers will  experience a CAGR of 40 percent through 2020. The entire CET market  -- which includes virtualization, containers, Private PaaS, and other automation and management software -- is estimated to be worth approximately $23.1 billion in 2017. It is expected to grow at a 15 percent CAGR to $39.6 billion at year-end 2020. Application Container Market Development The application container market can be compared to the OpenStack market. But based on the numbe...

IT infrastructure vendors are hopeful that, one day, their investment in the support of OpenStack is proven worthwhile. According to the latest worldwide market study by 451 Research, revenue from OpenStack business models are forecast to exceed $5 billion by 2020 and grow at a 35 percent CAGR. So far, OpenStack revenue has come from cloud service providers offering multi-tenant IaaS, but the latest research indicates that private cloud revenue will exceed public cloud by 2019. Meanwhile, even though it's true that OpenStack has experienced new growth, the vendor revenue contribution is relatively small. That being said, based on their latest analysis, 451 Research believes that OpenStack profitability will likely be achieved in the private cloud space, and in providing the hybrid orchestration for public cloud integration with on-premises or hosted OpenStack environments. OpenStack Use Case Development "This year OpenStack has become a top priority and credible cloud ...

Many CIOs know they must respond to the growing demand for public cloud services within their organizations. Building a private cloud with on-premises infrastructure is a path to progress, and OpenStack is the software platform. The eighth User Survey conducted by the OpenStack Foundation demonstrates the maturity and broad adoption of the open source cloud platform, pointing to significant increases in the percentage of full production deployments. The results of the latest survey findings were released by the foundation leadership, along with a new survey dashboard , now in beta, and six global filter categories enabling anyone to perform their own analysis on the data. OpenStack Market Development Trends The market study is intended to enable a better understanding of user attitudes, organization profiles, use cases, and technology choices surrounding OpenStack deployments. Data is shared with the OpenStack community to help make design decisions and plan for the future dev...

Informed telecommunications service providers have reduced their infrastructure cost and improved their development agility by adopting open source software.  According to findings from a recent survey, 85.8 percent of telecom industry respondents consider OpenStack to be essential or important to their success. The survey, commissioned by the OpenStack Foundation, explores current usage and adoption plans of telecom service providers -- particularly with respect to Network Functions Virtualization (NFV), 5G cellular communications, Internet of Things (IoT) and enterprise cloud computing. Facing unprecedented traffic and rapidly evolving customer expectations, telecom providers worldwide are accelerating their adoption of NFV to increase network agility and mitigate costs, and OpenStack has emerged as the NFV infrastructure platform of choice. OpenStack Market Development Results The OpenStack survey included 113 responses from representatives of telecom companies around th...

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 ...

Driven by the requirement for more flexible and cost-effective data center infrastructure models, the combined market for cloud hardware and software components will grow at a 12 percent CAGR through 2019 to reach $38.3 billion, according to the latest market study by Technology Business Research (TBR). “Vendors are seeding the cloud components market with both product portfolio and go-to-market enhancements that will drive opportunity growth,” said Allan Krans, principal analyst at TBR . According to the TBR assessment, the participants in this market are enabling more service providers to embrace cloud delivery through enhanced management platforms, a growing number of managed service capabilities and open source software standards such as OpenStack . Revenue opportunities for server, storage and data center networking hardware are robust, accounting for more than two-thirds of cloud computing components revenue in 2014. Moreover, they will continue to rise as a percentage of...

The U.S. Government Department of Defense (DoD) agencies would like to move 57 percent of their IT applications to the cloud by 2020, but believe that current budget allocation will allow just 24 percent of workloads to make the transition. This latest market study by MeriTalk surveyed 150 Federal IT professionals from DoD and American military intelligence agencies to examine where they stand in their move to a cloud services model -- by either migrating legacy software applications to the cloud, or by developing new cloud-native applications. The advantages of open source cloud computing for these government IT users are apparently understood. Eighty-seven percent of the survey respondents cite improved agility, budget savings, and saved time as the top cloud benefits -- but the preferred approach to reach their IT objectives are split. To date, 57 percent of the DoD current cloud applications have been migrated from legacy software applications, while 43 percent have been des...

Enterprise spending on Information Technology (IT) budgets will reach a combined worldwide total of $3.5 trillion in 2015 -- that's a 5.5 percent decline from 2014, according to the latest market study by Gartner . Regardless, smart CIOs are undeterred and are meeting their objectives -- they know how to optimize their budget spend. Gartner's analysts attribute the current decline to the rising U.S. dollar. But there are clearly several other logical reasons why business technology spending is in a state of flux. One obvious reason is the growing movement towards Open Source technologies. In constant-currency terms, Gartner says the market is projected to grow by just  2.5 percent. Back in their previous forecast during April, they had forecast IT spending to decline 1.3 percent in U.S. dollars and grow 3.1 percent in constant currency. Communications services will continue to be the largest IT spending segment in 2015, with spending at nearly $1.5 trillion. However, this...

Some CIOs and IT managers will point to complexity within the solution evaluation process to excuse their delay in adopting cloud-based offerings. In response, 451 Research has introduced its latest Cloud Price Index (CPI), detailing an objective investigation of the complete cost of cloud computing . The Index is intended to enable enterprise buyers to have transparency into the pricing models of both public and private clouds, analysis of the total cost of ownership (TCO), and insight into what 451 Research calls the "golden ratios" that determine when private or public cloud options deliver superior value. "The CPI is a tool that will benefit buyers weighing the most appropriate venues to run applications and workloads or to source services and providers determining pricing strategies," said William Fellows, vice president at 451 Research . The "Cloud Price Index: Private Edition" reveals that equivalent solutions from commercial software vendors ...

Since its emergence four years ago, OpenStack has garnered a great deal of industry attention. This open source cloud computing project has seen increased momentum as more developers, vendors and end users have collaboratively built out the OpenStack architecture. Today, the OpenStack series of projects has evolved into a top priority for many IT professionals and suppliers. This rapidly evolving software technology is the essential foundation for the Open Hybrid Cloud phenomenon. The OpenStack standard will provide similar benefits for large-scale cloud computing in the data center that the Linux standard has previously provided within the computer server. The OpenStack technology market, which is still in the early-adopter stage of market development, will grow from an estimated $883 million in revenue during 2014 to reach $3.3 billion by 2018, as vendors increasingly adopt the open-source platform for developing their applications and enterprises deploy the infrastructure for hy...