Digital Lifescapes

New wireless network technology is already a fundamental component of every enterprise CIO or CTO agenda in 2022. However, IT vendors and telecom providers must assess the broader enterprise connectivity technology landscape in order to determine where private cellular networks will add value. According to the latest worldwide market study by ABI Research, the overall market for private cellular networks within enterprise industry verticals will reach $109 billion by 2030. This includes radio access network (RAN), edge networks, core network deployments, as well as vendor professional services revenues, which alone will contribute $47 billion (44 percent) to the overall market size in 2030. Private Cellular Network Market Development "These numbers essentially tell two stories," said Leo Gergs, senior analyst at ABI Research . "The first is that they illustrate the immense opportunity for cellular connectivity within enterprise verticals. The second is that the high perc...

The 5G edge network value chain of players has an upside opportunity to generate new revenue and gain visibility in a market that includes IT data center companies, enterprise end verticals, public cloud service providers, and content delivery network (CDN) providers. 5G edge networks will play a key role in unlocking the commercial potential of new use cases such as private wireless communications. According to the latest worldwide market study by ABI Research, 5G private networks revenue will grow from $1.6 billion in 2021 to $65 billion in 2030, with a Compound Annual Growth Rate (CAGR) of 60.1 percent. 5G Edge Network Market Development "With 5G edge networks, every enterprise engagement is a custom job. Consequently, communications service providers (CSPs) and vendors seek to establish business models that are governed by different KPIs, both technical and commercial," said Don Alusha, senior analyst at ABI Research . This opportunity stands in contrast with product-led ...

The large enterprise quest to shift more IT workloads to hyperscale cloud service providers was pursued with the expectation of streamlining business processes for new digital transformation projects. While there are benefits to adopting public cloud services, there remain inherent IT management complexities. The global public cloud services market includes a broad mix of Infrastructure as a Service (IaaS), System Infrastructure Software as a Service (SISaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), which grew by 24.1 percent year-over-year in 2020 with revenues totaling $312 billion, according to the latest worldwide market study by International Data Corporation (IDC). Spending continued to consolidate in 2020 with the combined revenue of the top 5 public cloud service providers capturing ~38 percent of the worldwide total, and it's growing 32 percent year-over-year. Due to an expanding portfolio of SaaS and SISaaS offerings, Microsoft now shares the top p...

Next-gen mobile technology is being deployed globally, and cloud-native apps on fifth-generation (5G) networks will drive advances within the IT security industry. According to the latest worldwide market study by ABI Research, 5G network security will be a $9 billion enterprise market opportunity in 2025. The deployment of cloud edge computing infrastructure and network-function virtualization (NFV), plus API-driven platforms, and the isolation capabilities of network slices provide significant growth opportunities for new offerings. Both security software and services will be in demand from large enterprises seeking to leverage Massive Machine-Type Communications (mMTC), and Ultra-Reliable Low Latency Communication (URLLC) technologies. 5G Network Security Market Development "Initial spending on security will be by Communication Service Providers (CSPs) as they focus on securing their own mobile infrastructure and network. As CSPs advance, there is an opportunity for them to rec...

The global enterprise IT modernization and migration to SaaS cloud computing platforms has been accelerated by the ongoing COVID-19 pandemic, as more CIOs and CTOs adapt to the increased demand for flexible online working models that enable their knowledge worker employees to work from virtually anywhere. Clearly, IT infrastructure vendors directly benefited from this phenomenon. Vendor revenue from sales of IT infrastructure products for cloud environments -- including public and private cloud -- increased 9.4 percent year-over-year in the third quarter of 2020 (3Q20). However, investments in traditional, non-cloud, IT infrastructure declined -8.3 percent year-over-year, according to the latest worldwide market study by International Data Corporation ( IDC ). These growth rates demonstrate the market response to major adjustments in business, educational, and societal activities caused by the COVID-19 pandemic and the role IT infrastructure plays in these adjustments. Across the globe...

Total spending on IT infrastructure for cloud computing environments -- including public and private cloud -- recovered in the fourth quarter of 2019 (4Q19) after two consecutive quarters of decline, according to the latest worldwide market study by International Data Corporation (IDC). The 12.4 percent year-over-year growth in 4Q19 yielded $19.4 billion in spending. The results also brought the full year into positive territory with annual growth of 2.1 percent and total spending of $66.8 billion for 2019. Meanwhile, the overall IT infrastructure market results were mixed after a strong performance in 2018, up 3.3 percent to $38.1 billion in 4Q19 but declining 1.1 percent to $134.4 billion for the full year. In contrast, non-cloud IT infrastructure fell 4.6 percent to $18.7 billion for the quarter and declined 4.1 percent to $67.7 billion for the year. Cloud IT Infrastructure Market Development In 4Q19, growth in spending on cloud IT infrastructure was driven by the public clo...

Hyperscale cloud providers are experiencing some market saturation. Vendor revenue from IT infrastructure products (server, enterprise storage, and Ethernet switch) for cloud environments, including public and private cloud, declined in the third quarter of 2019 (3Q19) as the overall IT infrastructure market continues to experience weakening sales following strong growth in 2018. The decline of 1.8 percent year-over-year was much softer than in 2Q19 as the overall spend on IT infrastructure for cloud environments reached $16.8 billion, according to the latest market study by International Data Corporation ( IDC ). As a result, IDC chose to slightly increase its forecast for total spending on cloud IT infrastructure in 2019 to $65.4 billion -- that represents a flat performance compared to 2018. Cloud IT Infrastructure Market Development  The decline in cloud IT infrastructure spending was driven by the public cloud segment, which was down 3.7 percent year over year, reachin...

Most enterprise CIOs and CTOs now operate in a 'coexistence environment' where traditional data center (non-cloud), private cloud and public cloud all are an essential part of their IT infrastructure. This technology mix will continue in the foreseeable future. Furthermore, this mix will change slowly. According to the latest worldwide market study by International Data Corporation (IDC), vendor revenue from sales of IT infrastructure products for cloud environments -- including public and private cloud -- grew 11.4 percent year-over-year in the first quarter of 2019 (1Q19), reaching $14.5 billion. IDC also lowered its forecast for total spending on cloud IT infrastructure in 2019 to $66.9 billion – that's down 4.5 percent from last quarter's forecast – with slower year-over-year growth of 1.6 percent. Cloud Infrastructure Market Development Vendor revenue from hardware infrastructure sales to public cloud environments in 1Q19 was down 13.4 percent compared to t...

According to the latest worldwide market study by International Data Corporation (IDC), vendor revenue from sales of IT infrastructure products for cloud computing environments -- including public and private cloud -- grew 28 percent year-over-year in the fourth quarter of 2018 (4Q18), reaching $16.8 billion. For 2018, annual spending on public and private cloud IT infrastructure totaled $66.1 billion, slightly higher (1.3 percent) than forecast in Q3 2018. IDC also raised its forecast for total spending on cloud IT infrastructure in 2019 to $70.1 billion – that's up 4.5 percent from last quarter's forecast – with year-over-year growth of 6 percent. Cloud IT Infrastructure Market Development That said, quarterly spending on public cloud IT infrastructure was down 6.9 percent in Q418 compared to the previous quarter but it still almost doubled in the past two years reaching $11.9 billion in 4Q18 and growing 33 percent year-over-year, while spending on private cloud infrast...

According to the latest worldwide market study by International Data Corporation (IDC), vendor revenue from sales of infrastructure products for cloud IT -- including public and private cloud -- grew 48.4 percent year-over-year in the second quarter of 2018 (2Q18), reaching $15.4 billion. IDC also raised its forecast for total spending (vendor recognized revenue plus channel revenue) on cloud IT infrastructure in 2018 to $62.2 billion with year-over-year growth of 31.1 percent. Cloud Infrastructure Market Development Quarterly spending on public cloud IT infrastructure has more than doubled in the past three years to $10.9 billion in 2Q18 -- growing 58.9 percent year-over-year. By end of the year, public cloud will account for the majority, 68.2 percent, of the expected annual cloud IT infrastructure spending, growing at an annual rate of 36.9 percent. In 2Q18, spending on private cloud infrastructure reached $4.6 billion, an annual increase of 28.2 percent. IDC estimates tha...

Hybrid IT deployments continue to gain favor with CIOs and CTOs, but cloud computing will now drive a greater share of the ongoing investment in business technology. Those combined platforms are enabling digital transformation projects across the globe. Total spending on IT infrastructure products for deployment in cloud environments reached a total of $46.5 billion in 2017, with year-over-year growth of 20.9 percent, according to the latest worldwide market study by International Data Corporation (IDC). Cloud Infrastructure Market Development Public cloud data centers will account for 65.3 percent of this spending, growing at the annual rate of 26.2 percent over the IDC forecast period. Hosted off-premises private cloud environments will represent 13 percent of cloud IT infrastructure spending, growing at 12.7 percent year-over-year. On-premises private clouds will account for 62.6 percent of spending on private cloud IT infrastructure, and will grow 11.5 percent year-over-yea...

As 2017 came to a close, IT infrastructure vendors continued to respond to trends that favored Hybrid IT multi-cloud solutions. Most enterprise IT leaders invested in combinations of on-premises platforms and public cloud-based services. Meanwhile, the cloud hyperscale service providers still drive demand. Vendor revenue from sales of infrastructure products (server, storage, and Ethernet switch) for cloud IT -- including public and private cloud -- grew 25.5 percent year-over-year in the third quarter of 2017 (3Q17) reaching $11.3 billion, according to the latest worldwide market study by International Data Corporation (IDC). Cloud IT Infrastructure Market Development Public cloud infrastructure revenue grew 32.3 percent year-over-year in 3Q17 to $7.7 billion and now represents 30.2 percent of total worldwide IT infrastructure spending -- that's up from 26.3 percent one year ago. Private cloud revenue reached $3.6 billion for an annual increase of 13.1 percent. Moreover, t...

The ongoing shift to cloud computing continues across the globe. The worldwide public cloud services market grew 28.6 percent year-over-year in the first half of 2017 (1H17) with revenues totaling $63.2 billion, according to the latest market study by International Data Corporation (IDC). "Public cloud adoption is accelerating in large part as enterprises recognize that the cloud has become the launchpad for virtually every new IT innovation in the last 24 months -- including AI, blockchain, quantum computing and more," said Frank Gens, senior vice president and chief analyst at IDC . Public Cloud Market Development While stronger than expected growth was seen across all regions, Asia-Pacific saw the highest regional growth at 38.9 percent and this market now represents 11.5 percent of all public cloud services revenues. Strong public cloud spending in China, which saw 55.6 percent year-over-year growth in the first half of 2017, is a key driver. Among the three prima...

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...

The rush to move IT applications from on-premises enterprise data centers to public cloud service providers, primarily on the basis of the promise of a low-cost, has once again been challenged by recent market research findings. In fact, savvy CIOs and CTOs are seeking comprehensive solutions that meet all their expectations, rather than merely a limited subset. Even if it costs more to achieve that goal, the demand for superior hybrid cloud services is gaining momentum across the globe. As an example, seventy-five percent of respondents to the latest worldwide market study by 451 Research indicate that enterprise IT leaders are willing to pay a premium for enhancements to their server hosting and cloud services. Cloud Services Market Development The most desired improvements are guarantees of security (48.7 percent of respondents) and service performance (43.3 percent) with less interest in paying service providers to take on the operational management burden (27.9 percent). ...

More CIOs and CTOs are choosing to architect and deploy hybrid multi-cloud computing environments in 2017. The trend is being driven by growing demand to support digital transformation projects that are led by the C-suite. Newly released results from the CloudView Survey 2017 reveal the top drivers of cloud adoption -- include improving agility and security, as well as standardizing IT infrastructure. Cloud Computing Market Development As multi-cloud environments and hybrid cloud become more prevalent, the survey revealed that 87 percent of cloud users have adopted some capabilities for a hybrid cloud strategy -- that's an increase of 17 percent compared to 2016, according to the latest market study by International Data Corporation (IDC). "Beyond adoption and maturity, a series of questions on 'why are' or 'why aren't' respondents moving more workloads to the cloud makes up a key part of the study," said Benjamin McGrath, senior research analy...

Cloud computing adoption continues to disrupt the traditional IT infrastructure marketplace, as more CIOs and CTOs execute their ongoing plans for digital business transformation. While some regional expansions have tapered off, there are still many significant upside opportunities. According to the latest worldwide market study by International Data Corporation (IDC), vendor revenue from sales of infrastructure products -- server, storage, and Ethernet switches -- for cloud IT (including public and private cloud) grew by 9.2 percent year-over-year to $32.6 billion in 2016, with vendor revenue for the fourth quarter (4Q16) growing at 7.3 percent to $9.2 billion. Cloud IT infrastructure sales as a share of overall worldwide IT spending climbed to 37.2 percent in 4Q16 -- that's up from 33.4 percent a year ago. Revenue from infrastructure sales to private cloud grew by 10.2 percent to $3.8 billion, and to public cloud by 5.3 percent to $5.4 billion. Cloud Computing Market Develo...

Cloud computing will gain significant new adoption in the large enterprise market, with growth coming from public cloud services and increased on-premises cloud IT infrastructure investment, as more CIOs execute their hybrid cloud strategies. Total spending on IT infrastructure products -- server, storage, and networking -- for deployment in cloud environments will increase by 18.2 percent in 2017 to reach $44.2 billion, according to the latest worldwide market study by International Data Corporation (IDC). Cloud Infrastructure Market Development Of this spending, 61.2 percent will be on public cloud data centers, while off-premises private cloud environments will contribute 14.6 percent. Furthermore, spending on IT infrastructure for on-premises private cloud deployments will growth by 16.6 percent. By comparison, spending on traditional -- i.e. non-cloud -- IT infrastructure will decline by 3.3 percent in 2017, but will still account for the largest share (57.1 percent) of ov...

During 2015, CIOs and business technology managers joined the Line of Business leaders by moving more enterprise IT operations to cloud services. In 2016, it’s estimated that disaster recovery, IT helpdesk services, web content management and communication applications are all running in the cloud. That said, public cloud spending will accelerate rapidly, growing from $75 billion in 2015 to $522 billion by 2026 at a compound annual growth rate (CAGR) of 19 percent. The public cloud service segment CAGR rates are: SaaS (19 percent), PaaS (33 percent), and IaaS (18 percent). By 2026, it’s now estimated that cloud computing will account for nearly 50 percent of all spending for enterprise IT hardware, software and outsourcing services, according to the findings of a recent market study that was sponsored by North Bridge, a growth equity and venture capital firm. Based on the findings from the ‘2016 Future of Cloud Computing’ survey, while ~50 percent of all companies either have a c...

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...