Business Technology Roundtable

Around the world, market leaders in all industries have already deployed managed cloud services. Seeking to use business technology as a strategic lever to advance past their competition on multiple fronts, the senior executives at these leading companies are eager to learn about the next phase of cloud service development. Worldwide spending on public IT cloud services will reach $47.4 billion in 2013 and will reach more than $107 billion by 2017, according to the latest market study by International Data Corporation (IDC). Over the 2013–2017 forecast period, public cloud services will have a compound annual growth rate (CAGR) of 23.5 percent, that's five times the IT industry growth as a whole. As one of the key technologies enabling the industry-wide shift, cloud computing has played a crucial role in changing the way companies consume and use business technology. IDC believes that there are signs that cloud services are starting to shift into a the next phase -- where the ...

Are you one of those independent executives that uses strategic foresight to gain a decisive lead over competitors that tend to follow the crowd? Granted, it takes courage to make bold moves -- and follow the path that's less traveled. Big rewards tend to go to the confident, not the cautious. What's your business technology investment strategy for 2013, and beyond?  Does your corporate foresight anticipate success, based upon your ability to deploy quantum-leap technological advances -- like managed cloud services ? According to International Data Corporation ( IDC ), the economic slowdown in China has driven them to lower their expectations for worldwide IT spending growth this year. IDC now forecasts IT spending growth of 4.6 percent in constant currency for 2013. That's down from the previous forecast of 4.9 percent growth and a sharp deceleration from last year's growth of almost 6 percent. Despite the lower forecast, IDC expects IT spending will reach $2 tr...

We’ve certainly come a long way. Over the last couple of years, we’ve witnessed the trials and tribulations of the early-adopters of managed cloud services, and we’ve observed how the offerings have matured to attain broad-based market acceptance. Cloud computing has become pervasive within today’s forward thinking companies. It’s already a transformative force throughout the global networked economy. Every enterprise that uses Business Technology is either considering or implementing cloud solutions -- to create a strategic advantage over their late-adopter industry peer group in the marketplace. According to the latest market study by International Data Corporation ( IDC ), about 77 percent of North American companies were already using at least one public cloud service in 2012. IDC believes the companies that are spending on cloud-based capability have reached a deployment pace that’s unmatched by any previous business technology transformation. Moreover, they say that those ...

Economic uncertainty surrounding the U.S. government sequester, European debt crisis and weakening GDP in China has resulted in volatile spending patterns across most segments of the market. According to the latest market study by International Data Corporation ( IDC ), as a result of the current economic climate, business technology spending was slightly below expectations in the second half of 2012 and first quarter of 2013. IDC now projects worldwide IT spending growth of 4.9 percent this year in constant currency, down from the previous forecast of 5.5 percent growth -- and representing a slowdown from the 5.6 percent growth recorded in 2012. As a result, IT spending will reach $2.06 trillion in 2013. Including telecom services, ICT spending will increase by 4.5 percent to $3.7 trillion. So, what are the key trends that are shaping the updated global forecasts? Deteriorating PC Shipments The reduction in IDC’s overall forecast for 2013 is largely driven by rapidly deteri...

The cloud movement is about much more than the service offerings. It's a core ingredient of a larger commercial transformation movement -- where savvy leaders are using business technology to advance their operations and accelerate their key processes. According to the latest market study by International Data Corporation (IDC), worldwide spending on hosted private cloud (HPC) services will be more than $24 billion in 2016. IDC says that they define HPC as an operational model for deploying computing infrastructure services of many types via the cloud. IDC forecasts that HPC spending will experience a compound annual growth rate of more than 50 percent during the 2012-2016 period, as companies look to managed cloud services in its various forms as a means to transform the 'how' of what they provide to their customers. Evolution of Public and Private Cloud Models IDC believes that hosted private cloud offerings will become the backbone of a new set of infrastructure...

In 2013, IT buyers will be looking for increased stability and better ways to prepare for the next five years in their business cycle, according the the latest market study by Ovum. "The fact that we live in very uncertain times makes investment decision-making even more difficult. With continuing instability across the global markets and even in locations with historically robust growth -- such as China and India -- the outlook for IT services in 2013 is unpredictable," said Jens Butler, principal analyst, IT Services at Ovum . Oven believes that business leaders will be looking for greater reliability in their IT usage and -- as a consequence -- seeking stability, capability and accessibility among their external service providers . Growing Trend Towards Cloud Applications Moreover, Ovum has published three "Trends to Watch" reports on cloud computing -- which reveals that 2013 will see managed cloud services continue to grow rapidly. Their Private and...

As 2012 draws to a close, a growing number of savvy enterprise CIOs -- and perhaps even more Line of Business leaders -- are joining the momentum towards an increase in the mainstream adoption of managed cloud services. Furthermore, the near-term market outlook for 2013 is particularly bright and the long-term expectations are equally promising -- due mostly to the reported positive experience and results from the early adopters of cloud services across the globe. Peer recommendations are clearly driving this change in the marketplace. Worldwide spending on public IT cloud services will be more than $40 billion in 2012 and is expected to approach $100 billion in 2016, according to the latest market study by International Data Corporation ( IDC ). Over the 2012–2016 forecast reporting period, IDC believes that public IT cloud services will enjoy a compound annual growth rate (CAGR) of 26.4 percent, that's five times the traditional IT industry, as more business leaders ac...

What are the best practices for deploying managed cloud services? Case studies have now confirmed that cloud services can be a better, faster, less expensive and less risky way to source Information and Communications Technology (ICT) solutions, according to the latest market study by Ovum. Results from recent research conducted by Ovum details the experiences of five public sector organizations that have successfully deployed cloud services -- either with Infrastructure-as-Service (IaaS), Software-as-a-Service (SaaS) or Platform-as-a-Service (PaaS). Highlighting the known benefits and the catalysts that empower organizations to embrace the cloud service delivery model, Ovum says they have developed a framework to assist government agencies in understanding the organizational factors associated with early adoption of managed cloud services . Moving Beyond Analysis Paralysis "Cloud services have long been debated across the globe, but it is now time to stop discussing theor...

The detractors of cloud computing benefits will state that the typical adoption is still limited at most enterprises -- they're deploying cloud services to a few early-adopters. That being said, some leading markets are confidently moving ahead with mainstream deployments, regardless of the caution. While others, such as western Europe, are apparently in transition. The western European private cloud market will grow at a CAGR of 23.2 percent for the next five years to reach $7.9 billion in 2016, according to the latest market study by International Data Corporation ( IDC ). IDC has been looking in-depth at the private cloud marketplace -- from a hardware, software, services and networking points of view. "The growth of private cloud is even more impressive in the context of the current economic situation," said Mette Ahorlu, research director, IDC European Services. According to IDC's assessment, demand in the region is being driven by the need for cost sa...

While most commentary about managed cloud services tend to focus on the advances in commercial enterprise applications, government agencies are also making noteworthy progress. In particular, the advent of regional community cloud hubs is a phenomenon that's worthy of further exploration. According to their latest market study and related report, IDC Government Insights believes regional cloud hubs will significantly change the way state and local governments procure online computing services. These regional cloud hubs, defined as one government agency offering computing and storage services to other government agencies, have proven successful in the State of Michigan and State of Utah. In addition, the IDC's research provides a framework for building similar regional cloud solutions. According to Shawn McCarthy, research analyst, IDC Government Insights, "We believe that cloud hubs will see rapid growth, since the first multi-agency efforts have already shown a pos...

Here's the scenario, you're a busy executive working away from your office and you just want to quickly research something on the Web. You turn on the company-provided notebook computer and you wait the standard 3-6 minute delay, before you can actually use it. The corporate IT department has numerous mandatory processes that must load first -- such as virus protection, data backup, system and app software updates, etc. -- on a typical Windows system. That's often dozens of processes running at start-up, and some will consume 100 percent of the available processing power. That automated cycle can temporarily incapacitate a notebook PC. Don't bother attempting to load a web browser while this PC start-up sequence is in motion. What's the alternative? If you have a media tablet, simply use it instead and you're on the Web in a matter of seconds. Mobile Workers and Their Virtual Workspace Is your company prepared for the pending business tablet invasion th...

 As more multinational business executives and IT managers consider embracing managed cloud service offerings, many are wondering how the service provider landscape is evolving -- and where providers plan to differentiate their capabilities. Much of the initial market insight focused on the key emerging trends, but now we're starting to see more detailed analysis. A new market study by Infonetics Research details operator plans for managed cloud services -- including their strategies and approaches to offering services, how services will be delivered now and in the future, and top applications of each type of cloud service including: Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). Their latest worldwide study resulted in the report entitled "Cloud Service Strategies: Global Service Provider Survey," where Infonetics analysts interviewed 20 incumbent telco, competitive, data center operators, and cable operators t...

The early-adopter trials have begun, the commercial apps are being developed -- it's now a given, purpose-built tablets will be used in more mainstream business settings during 2012. Besides, executives and IT managers at multinational companies will likely witness this phenomenon first, particularly in the more advanced markets. According to the latest market study by International Data Corporation ( IDC ), media tablet shipments in EMEA reached more than 12 million units in the first three quarters of 2011 -- growing to 20 million units by the end of the year. Although business purchases currently represent less than 10 percent of the entire tablet market, the near-term opportunity for growth from business use is believed to be significant -- including online collaboration applications. Functionality such as a touch screen user-interface, portability, secure LAN connectivity and more business apps for vertical industry needs, are all factors that demonstrate the potentia...

The proof-positive business impact from managed cloud services deployment, including the numerous associated productivity benefits and anticipated cost-savings, have pushed cloud computing well into the mainstream during 2011. As we move into 2012, International Data Corporation ( IDC ) predicts that this evolution will continue as more users test the growing capabilities of the public cloud services that are already available. However, by 2015, IDC envisions a very different scenario -- one where cloud services will become commonplace, thereby forcing significant changes in the ongoing adoption of progressive business technology practices throughout legacy IT organizations. "In the next 24 months, the 'cloud' as a marketing label will cease to exist, as the success of cloud services will mean that it will permeate the sourcing strategies of the CIO and business unit manager alike," says Chris Morris, Lead Analyst for Cloud Services at IDC Asia/Pacific. He ad...

Multinational company CEOs are one of the most vocal advocates of the managed cloud services phenomenon. Many have been through the painful process of watching helplessly as their CIO championed the deployment of monolithic ERP and CRM systems -- only to discover that these huge enterprise software projects failed to live up to their promise. Meanwhile, purposeful line-of-business executives have successfully utilized software-as-a-service (SaaS), with their CEO's support, to break free from the legacy IT platforms and thereby give their employees the business technology (BT) productivity tools that they had hoped for -- or that the power-users demanded. Forward-looking vendors and prescient BT service providers are now leading the transition to the next wave of productivity-enhancing and cost-reducing platforms. Next year, we'll likely witness increased market activity, as the next chapter of this story unfolds. In anticipation, Cisco has pro-actively presented its cloud...

As 2011 comes to a close, many busy executives and IT managers will be pondering the continued adoption of cloud applications within their organizations. How can a business be adequately prepared for the anticipated increase in demand for managed cloud services ? Moreover, what are the key related market indicators that are shaping the future of emerging business technology deployments? The Cisco Global Cloud Index is an ongoing effort to forecast the growth of global data center and cloud-based IP traffic. The forecast includes trends associated with data center virtualization and cloud computing . From 2000 to 2008, peer-to-peer file sharing dominated Internet traffic. As a result, the majority of Internet traffic did not touch a data center, but was communicated directly between Internet users. Since 2008, most Internet traffic has originated or terminated in a data center. Data center traffic will continue to dominate Internet traffic for the foreseeable future, but the nat...

Cloud computing demand will drive new IT spending over the next five years, as public cloud service providers and the adopters of private cloud solutions invest in the supporting infrastructure, according to a recent market study by International Data Corporation (IDC). Therefore, the leading managed cloud service providers have been busy expanding their service delivery platforms. Overall spending by public cloud service providers on storage hardware, software, and professional services will grow at a compound annual growth rate (CAGR) of 23.6 percent from 2010 to 2015, while enterprise spending on storage for the private cloud will experience a CAGR of 28.9 percent. By 2015, combined spending for public and private cloud storage will be $22.6 billion worldwide. "Despite current economic uncertainties, IDC expects cloud service providers -- both public and private -- to be among the most expansive spenders on IT products and services as they continue to build out their f...

The healthcare and social services vertical marketplace is extensive. It includes companies that provide medical care and social assistance for individuals -- which includes ambulatory healthcare services, hospitals, nursing and residential care facilities, and social assistance services. Healthcare has been a growth vertical in U.S. business markets. According to the latest market study by In-Stat , research supports a forecast of continued growth, with healthcare spending $518 million on Infrastructure as a Service (IaaS) in 2015. Overall telecom spending by the healthcare and social services vertical was just under $16 billion in 2010. Wireless communications is the largest of the product categories, comprising about 40 percent of telecom spending in the healthcare and social services vertical. Cloud computing and managed services is the fasting growing component. Wireline data and wireline voice comprise the remainder of the telecom spend. Increased Demand for Man...

The cloud computing phenomenon now includes a set of services and technologies that enable the delivery of on-demand computing services over the Internet in real-time, allowing end-users instant access to data and applications from any device with online access. Although still in its infancy, gaining traction has not been a problem. According to the latest market study by In-Stat, Infrastructure as a Service (IaaS) is set to grow to roughly $4 billion by 2015. "Growth is expected in all public cloud service segments," says Greg Potter, Analyst at In-Stat . Many Software-as-a-Service (SaaS) applications have been around for a long time, but now with the advent of entire platforms for these applications they're gaining the necessary visibility among businesses to reach renewed momentum in the marketplace. Infrastructure-as-a-Service (SaaS) is also gaining increased traction, especially in the small business market. In-Stat's latest market study includes ...

Broadband service providers gained a 5 percent share of nearly $20 billion annual cloud services market, with 25 percent compound annual growth rate (CAGR) forecast to 2013 -- according to the latest aggregated market research assessment by STL Partners . Based upon their observations, most market forecasts estimate that the total cloud services market will reach $45-50 billion revenue by 2013 or 2014 -- including the Bain forecast that was previewed at the "Americas Telco 2.0 Brainstorm" event, which was hosted by STL Partners in April 2011. At their EMEA brainstorm event, the attendees were given an overview of the component cloud markets and examples of different cloud service approaches . They were then asked for their views on the potential share that service providers might garner from the addressable cloud revenue opportunities within each category. In total, the attendee consensus view amounted to service providers gaining 18 percent of the revenue for cloud ser...