Cloud market to hit $83 billion by 2016: will it still be measurable by then?

Summary:The cloud market is set to boom -- but will cloud services be as common as CDs?

Visiongain just issued a report that projects that the cloud services market will be worth some $82.9 billion by the year 2016.

That's a big number.  Plus, the consultancy says that more than 30% of enterprises worldwide are already deploying at least one cloud solution, which suggests that adoption is already widespread. There are a number of variables shaping the market:

"SaaS services, which represent the largest share of the cloud services market, at 69% of all services in 2011. The popularity of SaaS services is also driving increased interest in Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) services as businesses become more comfortable with the cloud. Awareness of data protection legislation, terms and conditions of SLA (Service Level Agreements) and a better understanding of the nature of cloud services is shaping the cloud ecosystem and paving the way for market consolidation."

The problem in trying to size such a market is deciding where traditional software ends and cloud begins. Or, where traditional outsourcing ends and cloud begins. It's likely that cloud will simply be another inter and intra-enterprise service delivery channel in the years to come, especially from third-party software vendors. More telling numbers will be the savings -- or additional costs -- enterprises will be incurring by moving to on-demand services offered by someone else.

Private cloud complicates any measurements even further -- how many enterprise back office applications will be virtualized and delivered as services?

Topics: Emerging Tech, Apps, Cloud, CXO, Data Centers, Software Development

About

Joe McKendrick is an author and independent analyst who tracks the impact of information technology on management and markets. Joe is co-author, along with 16 leading industry leaders and thinkers, of the SOA Manifesto, which outlines the values and guiding principles of service orientation. He speaks frequently on cloud, SOA, data, and... Full Bio

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