Archive for Cloud Computing
by Bill Ives
May 18, 2011 at 3:36 am · Filed under
Cloud Computing, Enterprise 2.0
The global cloud computing market will grow from $40.7 billion in 2011 to more than $241 billion in 2020, according to new Forrester forecast data reported in Sizing The Cloud by Stefan Ried, Ph.D. and Holger Kisker, Ph.D. Based on Forrester’s cloud market taxonomy, this new report outlines the different market dynamics for the three core layers of cloud computing – the public cloud, the virtual private cloud, and the private cloud. The total size of the public cloud market will grow from $25.5 billion in 2011 to $159.3 billion in 2020. The market for virtual private cloud solutions will grow from $7.5 billion in 2011 to $66.4 billion in 2020. The market for private cloud solutions will grow from $7.8 billion in 2011 to $15.9 billion in 2020.
The cloud market will change as we move toward 2020. While the successes of early leaders have prompted many other providers to offer IaaS solutions, Forrester feels that this market will reach a peak of $5.9 billion in global revenues in 2014 and then enter a period of significant commoditization, price deterioration, and margin pressure. SaaS represents the largest and most sustainable growth opportunity, thanks to rapidly increasing demand from companies of all sizes. At the same time Forrester believes that desktop virtualization is reaching the end of its cycle of innovation, while a new set of technologies that allow virtualization of large-scale, server-based enterprise applications are starting to become more important.
The market is not one-dimensional and is maturing at different levels and serves different groups within the enterprise. As the report suggests, cloud value propositions are compelling to individual end users, corporate buyers, and tech providers such as independent software vendors (ISVs). As a result, the benefits of cloud computing range from personal productivity to operational flexibility to cost savings.
Cloud-based solutions and services will continue to be useful in a rapidly changing market as companies can more easily align their underlying operational processes and systems as their business requirements change. I covered several of these trends as I have written on how the cloud can make CIOs more strategic and on the rise of cloud based apps in a down market. I was pleased to receive a review copy of this useful report. You can find it at the Forrester site.
by Bill Ives
March 31, 2011 at 3:55 am · Filed under
CIO, Cloud Computing
Here is an interesting study by IDG that found that cloud computing is enabling a more central role for IT in shaping business strategy and driving innovation. The research polled 200 IT managers in the U.S. and Europe. The vast majority (96 percent) believes that the primary role of IT has changed over the past five years, and 71 percent feel the trend to continue over the next two years. While 54 percent of the survey participants acknowledge the current value of IT is largely defined by its role as owner and operator of IT infrastructure, they believe within two years, the primary value of IT will become managing the IT supply chain. Half feel that the cloud is contributing to this change.
Looking further into the results, IT professionals believe cloud computing can accelerate agility (63 percent), innovation (58 percent) and collaboration with the enterprise (57 percent). Respondents also anticipate cloud computing will boost IT productivity (55 percent) and decrease the resources dedicated to IT support (40 percent). These changes will likely trigger a demand for more business and management experience in senior IT professionals. Nearly 70 percent of respondents feel an increasing number of CIOs and senior IT staff will have a business (as opposed to a technology) background in the future.
The nimble nature of cloud based IT coupled with the reduction in maintenance needs, should allow CIOs to focus more on business issues. However this transition will set up challenges. At last years, MIT CIO Symposium, panelists talked about the CIO Paradox. They have to drive innovation, manage risk, and control costs and these goals can be at cross purposes. They often inherit costly legacy systems and then are told to go forth and innovate. I wonder what the talk will be at the 2011 session. I am planning to attend and will be reporting on it here.
by Bill Ives
February 3, 2011 at 3:01 am · Filed under
Cloud Computing, Enterprise 2.0, Social Media
According to a recent survey over 60 percent of respondents in the mid-size business space say they are ready to look to the cloud. Many are already using virtualization but only 4 percent are using the cloud now to back up data. In addition, 63% say they are using 10% or less of their applications on a SaaS platform. So this projects a major shift in the mid-size business IT architecture.
Are these companies prepared? It seems that there is work to be done as 79% do not have a plan for their move into the cloud. Many see the advantages as 63% feel that the cloud offers cost savings and 29% feel that the cloud offers more flexibility. At the same time, only 8% believe there is no advantage to the cloud.
Many of the vendors are now offering SaaS platforms or at least options so there is challenge here for them to further penetrate the mid-size market. The good news is that the desire for the cloud is there, the caution is the lack of strategic planning in place.
Social media is generally operates on a cloud platform. In the large company space I have seen at least one study that indicate over 80% of companies plan to use social media in 2011 but another study found less than half have a strategy for social media use. This parallel between social media and the cloud is not surprising. In both cases vendors need to avoid prompting tools and services because they are the latest thing and help clients address planning and strategy requirements to make sure their applications are kept for the long run.
by Bill Ives
October 12, 2010 at 3:03 am · Filed under
Cloud Computing
While cloud computing continues to increase I found it interesting, and not surprising, that more firms are choosing private clouds than public ones. As reported in ComputerWorldUK, Gartner surveyed 1,587 CIOs and other senior IT decision makers about general IT spending trends, with 484 respondents providing answers relating to questions on cloud computing. The survey wnet across 40 countries, from April to July 2010, and found that 39 percent of respondents allocated some IT budget to the cloud.
ComputerWorld quoted Bob Igou, research director at Gartner, “One-third of the spending on cloud computing is a continuation from the previous budget year, a further third is incremental spending that is new to the budget, and 14 percent is spending that was diverted from a different budget category in the previous year,”
The Gartner analysts said that this investment trend shows a “shift towards the ‘utility’ approach for non-core services, and increased investment in core functionality, often closely aligned with competitive differentiation.” In addition some 43 percent of respondents expected an increase in spending for private cloud implementations designed for internal or restricted use of the enterprise compared to 32 percent looking at public cloud implementations. This later trends shows the flexibility of the cloud and a desire to combine utility with security.
The benefits and risks of using the cloud are well known: flexibility, agility, and cost savings versus security and control concerns. Building private clouds seems a logical approach.
by Joe McKendrick
November 25, 2009 at 1:12 pm · Filed under
Cloud Computing, Enterprise 2.0, Enterprise Software, SOA, Web 2.0
I recently was talking with David Linthicum, author of a recently published work entitled Cloud Computing and SOA Convergence in Your Enterprise: A Step-by-Step Guide, which discusses the business case for considering cloud. In talking about cloud computing, our chat moved to Web 2.0, to which Dave made the observation that many in Web 2.0 circles do not see cloud computing as part of that paradigm. Why not? Dave says to some degree there are political/turf reasons, as some Web 2.0 proponents see cloud as a threat to their established order.
Add to that the fact that cloud and Enterprise2.0/Web 2.0 (I’ll address them as one in the same for this post) address problems at different levels. Namely, cloud addresses access to IT-centric services, such as storage capacity on demand, processing capacity on demand, and infrastructure on demand. For example, one of the key business values seen with cloud is the ability to scale up applications by adding off-site processors. The “private clouds” that are now being discussed arise out of virtualization solutions deployed on top of IT systems.
In the Enterprise/Web 2.0 view of the world, this is all behind-the-scenes stuff that the IT guys worry about. Enterprise/Web 2.0 proponents talk about building communities, collaboration, and moving information more openly and efficiently across networks.
What is happening, unfortunately, is that Enterprise/Web 2.0 and cloud are becoming two separate initiatives within enterprises, when they should be very closely linked. Because the essential value that Enterprise/Web 2.0 is bringing into organizations is the ability to conduct business, connect all essential parties in transactions, and open up formerly clogged information channels is through technology services that may be once, twice, or three times removed. In other words, delivered from the cloud. Facebook and Twitter are clouds, clear and simple.
As companies move to increase social networking and collaboration across their enterprises with internal and external tools and applications, the success of Enterprise 2.0 rests on their simplicity, accessibility and usability. In other words, complexity and technology issues are abstracted away from end-users. This is also the goal of cloud computing. Perhaps, on some level, cloud computing is actually “Enterprise 2.0″ for IT managers?
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