Hybrid cloud will make up the largest and most used segment of the cloud computing market in coming years, according to the report.
TechNavio says the hybrid cloud market was valued at a moderate $US21.18 billion in 2013, with North America contributing the majority of the revenue, followed by Europe and Asia Pacific. The report found that there is currently higher adoption of hybrid cloud in the government, BFSI (banking, financial services, and insurance), retail, telecom, healthcare, and media and entertainment sectors.
However, the report expects that nearly half of large organisations will have hybrid cloud deployments by 2017 as enterprises look to boost productivity by hosting critical applications on private clouds and applications with less security concerns on the public cloud.
The report also highlights increasing adoption of hybrid cloud by SMEs, suggesting that many SMEs have limited access to internet bandwidth and are likely to preference hybrid because it lets them “use applications and store data wherever required."
TechNavio notes that while the market has several drivers, there will be some key challenges for the hybrid cloud model that could stunt the rapid adoption rate expected over the next five years - namely the need to ensure business continuity and latency in data transfer.
The report, which also surveyed 100 cloud companies from around the globe, says enterprises and SMEs can resolve data segmentation hurdles by employing analytics software and building on current IT policies to include data allocation between public and private clouds. The majority of respondents said that although many companies are planning to implement such protocols, “there are still a lot of businesses that have little to no protocols in place."