Going Up: Cloud-based Data Center and Private Cloud Spending Is On The Rise

If you read Forbes magazine, you might recall a study published by Goldman Sachs earlier this year that projected spending on cloud computing and related platforms + infrastructure to rise at a staggering 30% compound annual growth rate (CAGR) through to the end of 2018.

In the study, entitled “Battle Of Cloud Titans Has Just Begun, Goldman Says” Goldman Sachs predicts a rise in cloud and infrastructure spending growing to $43B USD in 2018 – a number that’s up substantially from $16B in 2014. (Read Full Article)

In fact, Ovum, a leading business intelligence and research company in Europe, has hinted that, by the end of 2016, the number of enterprises using IaaS will reach 80% globally with the greatest portion of that growth in the private cloud computing sector. (PDF, free, no opt-in)

Goldman Predictions Get a Nod from Cisco’s Global Cloud Index

Even Cisco appears to be in agreement with the Goldman report – Cisco’s Global Cloud Index is predicting that 78% of enterprise data workloads will be processed by a cloud-based data center, while traditional data centers will process the remaining 22%.

Cisco’s predictions for Data Center growth rates is in-line with the Goldman predictions at 32% CAGR, leading us to agree with the numbers as well. Also, according to Cisco Global Cloud Index: Forecast and Methodology, 2013–2018 (free PDF, no opt-in) — 69% of workloads will be processed by Private cloud data centers with 33% CAGR; while 31% will be processed by Public cloud data centers with 21% CAGR.

Other important forecasts from the Cisco Cloud Index include:

  • Traffic across global data centers will reach a monthly rate of 8.6 zettabytes (ZB) by the end of 2018. This prediction is up from 3.1ZB per year in 2013.
  • Global IP traffic through data centers will multiply by 2.8 over the next five years, growing at a CAGR of 23 percent up to 2018.
  • Annual cloud IP traffic will reach 6.5 ZB globally by 2019 – and global cloud IP traffic will nearly quadruple over the next five years.

And the Leaders in the Enterprise Cloud Computing Market Are…

If you’re wondering who’s ahead of the game in the enterprise data center automation market – the top vendors in 2013-2014 based on worldwide market share and momentum, according to IDC study & other private research firms, includes VMware, Cisco, Puppet, Chef and others.

Also in the enterprise cloud computing market, Amazon.com is one of the clear leaders, with its popular Amazon Web Services (AWS) taking in $4 billion in 2014 alone. However, Goldman noted in their report that other cloud computing solutions, including Microsoft Azure, Google’s Cloud Platform, and Salesforce.com’s Salesforce1 offering are being considered more and more in cloud computing deals.

If you follow the enterprise IT market, you’ll see that it’s in the 6th or 7th year of a long (experts put it at 20 years) cycle that will see traditional suppliers of IT hardware and software disrupted unless they can adapt quickly to this shift into the cloud. Server virtualization and SaaS have been the first two major phases of this cycle, and Goldman is certain the next phase will be cloud platforms for enterprise computing.

Smart IT companies are paying attention to these trends, and they’re taking the necessary steps to stay competitive during this shift.

When Change Happens in the World of Cloud Computing, CAS is There to Help You Adapt.

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