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

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?

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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, CXO, Cloud, Data Centers, Software Development

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  • It will be "boom and bust".

    No doubt that cloud services will grow, and many companies will jump in with their attempts to save and make their operations simpler by "outsourcing" some of their work to others. It would be foolish for any company to put all their eggs into the cloud, because, the cloud will be the next service to become a "bubble", and like all bubbles, they "burst", and suddenly. All it takes is a major outage or an accident or some sort of attack on the infrastructure. With that, some companies that depended on the cloud will have to shut down because they won't have a Plan-B ready to take over.
    adornoe
  • RE: Cloud market to hit $83 billion by 2016: will it still be measurable by then?

    Hi Joe - a more incisive question would be in future where will cloud end and business begin. All businesses will effectively be cloud services. Ian
    iansthomas
  • RE: Cloud market to hit $83 billion by 2016: will it still be measurable by then?

    Not sure how far the consumer sector will go with this.
    When we see the first major "blow up" over ownership of cloud material I suspect that market will change significantly. Into what I really don't know.

    For now I use the cloud sparingly and keep my data close.
    Have yet to find a good TOS for any of them :O
    rhonin
  • RE: Cloud market to hit $83 billion by 2016: will it still be measurable by then?

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