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Hybrid IT Demand Fuels Multi-Cloud Computing Trend

Guided by senior executive goals for digital transformation, more organizations are increasing their use of cloud computing technologies. The typical multi-cloud mix includes a blend of public cloud, private cloud and traditional IT services. Finding the best-fit service mix starts with the business requirements. The latest Global Cloud Index (GCI) 2016-2021 from Cisco focuses on the worldwide market outlook for enterprise data center virtualization and cloud computing services. Today's digital business is enabled by a Hybrid IT infrastructure that supports the deployment of cloud-based solutions. Driven by the surging enthusiasm for digital reinvention projects, data center traffic is growing fast. The market study authors forecast global cloud data center traffic will reach 19.5 zettabytes (ZB) per year by 2021 -- that's up from 6.0 ZB per year in 2016. Globally, cloud data center traffic will represent 95 percent of total data center traffic by 2021, compared to 88 per...

Coexistence: Adopting an Optimal IT Infrastructure Model

Some mainstream IT buyers might think that most cloud infrastructure vendors and service providers are essentially alike. But there are key differences. Besides, given the body of market research to the contrary, there’s clearly no such thing as a "one-size-fits-all" cloud solution. Furthermore, if you believe that a hybrid cloud should support an IT agenda to transform a business, then a viable solution must consider the preexisting systems of record within the enterprise. That’s why forward-thinking CIOs often seek information and guidance on two fronts. First, they want to know how to extract costs from their legacy IT investments. Second, they desire to use that assessment exercise to free-up budget and fund innovation via a DevOps model that would streamline new cloud-native technology deployments. That’s why pragmatic CIOs understand the reality of a coexistence environment, where current on-premises IT systems must be an integral part of the total digital transf...

Growing Hybrid Cloud Usage will Double in Two Years

Cloud enables IT agility, empowers DevOps teams and helps to transform legacy business models. The fifth annual Future of Cloud Computing survey investigates key trends in corporate cloud usage. This year's insightful survey findings offer perspective from cloud service practitioners across all industry sectors. "Cloud has been gaining momentum year­-over-­year since the Future of Cloud Computing survey was launched five years ago. Looking at the adoption rates and trends at such a detailed level, it's undeniable that the most successful technology leaders of today and tomorrow are scaling in the cloud," said Jim Moran, General Partner at North Bridge . "Last year, we discussed the second cloud front and the rise of cloud­-native companies. This year, we're seeing the pervasiveness of cloud disrupt industries across the board as companies look to maximize and implement cloud as a strategic and integral technology," Moran added. "We're also...

Ready or Not, the Mobile Cloud Era Awaits You

We’re nearing the end of 2014 and most smart CEOs already know their IT transformation game plan for 2015 – more digital differentiation woven into the fabric of their essential operations. Every enterprise is now a digital business, regardless of the industry. That’s why digital service innovators are in such high demand. Meanwhile, many of the more traditional IT process-oriented jobs will diminish in importance. Are you evolving your IT support team’s roles and responsibilities, as a result these key trends? Forward-thinking CIOs and IT managers have already embraced business technology that will do some of the more tedious routine system administration tasks via automation, so that they can redirect their focus to higher-priority activities. What’s considered a pressing requirement? Many believe that it’s attaining parity in the enterprise with the freemium consumer cloud offerings that have helped to fuel the so-called Shadow IT phenomenon. Public Cloud Gains More Converts ...

How Cloud Computing Empowers the Agile Enterprise

Public cloud service adoption is already a mainstream phenomenon in most organizations. Meanwhile, many large enterprises see a private cloud in their future. But choosing whether to invest in building an internal cloud infrastructure or buy from a cloud service provider will become more challenging – in anticipation, savvy IT leaders are becoming brokers of dynamic business technology solutions. Hybrid cloud resource management and progressive operational process adoption are the key focal points in preparation for this transition. Moreover, Line of Business demand for emerging use cases and just-in-time IT workload creation requires speedy access to a managed self-serve DevOps deployment model . That’s why comprehensive management and provisioning tools -- such as Red Hat CloudForms -- have become essential platforms. Besides, given the pervasive trends in the marketplace, every business will eventually need an actionable hybrid cloud adoption plan. It’s a requirement of the for...

How New Services will Drive the Next Phase of Cloud

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 ...

Exploring Demand for Hosted Private Cloud Services

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...

Public Cloud Services will Gain New Momentum in 2013

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...

Business Objectives Drive the Shift to Cloud Services

Adoption of cloud computing services continues to accelerate as organizations move from limited deployments to comprehensive solutions, according to the latest market study by CompTIA, the non-profit trade association for the information technology (IT) industry. More than half (56 percent) of the organizations surveyed for the CompTIA study said their investment in cloud computing will increase by 10 percent or more over the next 12 months. “This additional investment will likely be accompanied by greater complexity in the overall cloud strategy, such as moving to a hybrid cloud model or adopting more advanced services beyond Software as a Service (SaaS),” said Seth Robinson, director, technology analysis, CompTIA. ”Organizations may begin exploring options such as Infrastructure as a Service (IaaS) and Platform as a Service (PaaS), which will allow them to experiment with custom application development.” IT departments are often a key driver behind the transition to ...

The Top Five Vertical Markets for IaaS Offerings

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 ...

How Healthcare IT will Migrate to Cloud Services

According to the findings from a global market study, the healthcare sector has a highly complex IT environment that's supporting a very diversified professional user population (i.e., clinicians) -- along with their patients in life-critical situations. The industry is currently facing growing economic and regulatory pressures that make its IT infrastructure primed for change. Therefore, all organizations will likely consider the potential benefits of migrating to cloud computing. Improvement in the quality of healthcare services is a key driver for managed cloud service adoption. Billions of dollars of federal incentives are provided for the delivery of quality healthcare services, and expanding the use of electronic health record (EHRs) systems -- as well as providing the basis for the exchange of information and data across and between the providers. These EHR systems are expected to be used extensively by 2014. Another significant opportunity is the consumer-oriented c...

Cloud Services are Instrumental to IT Transformation

According to the latest market study by International Data Corporation ( IDC ), cloud computing will continue to reshape the business technology landscape over the next five years -- as spending on public cloud services expands at a CAGR of 27.6 percent, from $21.5 billion in 2010 to $72.9 billion in 2015. That said, apparently the trend and resulting impact of cloud services will extend well beyond information technology (IT) spending. Managed cloud services are a critical component in a much larger transformation that IDC expects will be instrumental in driving IT industry growth for the next 25 years. "Cloud services are interconnected with and accelerated by other disruptive technologies, including mobile devices, wireless networks, big data analytics, and social networking," said Frank Gens, senior vice president and chief analyst at IDC. This collective group of technologies are merging into the industry's third major platform for long-term growth. Similar to...

Managed Cloud Services: an Aggregated Market Forecast

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...

City Services Delivered Over Mobile Cloud Infrastructure

Busan Metropolitan City launched a center to host a variety of services for its citizens. Operating like an app store for developers, the Busan Mobile Application Development Center (BMAC), marks the first phase of their deployment of Smart+Connected Community (S+CC) services -- in collaboration with Cisco and a local service provider, Korea Telecom (KT). The plan is part of the Busan Green u-City (ubiquitous city) blueprint, which is in line with the national agenda to support environmentally sustainable economic growth in the country. Busan, a bustling city of approximately 3.6 million residents, is located on the southeastern tip of the Korean peninsula. The second-largest city in South Korea, Busan occupies about 300 square miles (766 square kilometers), 8 percent of the entire Korean peninsula. Busan also has the country's largest container-handling port (fifth largest in the world) -- thanks to its accessibility from the Pacific Ocean, deep harbor and gentle tides. Ci...

IT Cloud Services Primary Sectors of Adoption

Theoretically, all types of organizations should be predisposed to consider the transition to managed cloud services -- due to the numerous anticipated benefits. However, based upon the results of recent market research in the United States, it now appears that some sectors are much more likely to be part of the growing early-adopter movement. International Data Corporation ( IDC ) announced the findings of a new market study, which forecasts that from 2009 to 2014 the U.S. public IT cloud services revenue will grow 21.6 percent -- rising from $11.1 billion to $29.5 billion. According to IDC's market assessment and forecast, the professional services, communications & media, and discrete & process manufacturing sectors will drive the greatest market adoption -- generating the most public cloud services revenue. Broad Appeal of SaaS Offerings Will Continue IDC believes that the professional services market, in particular, will be the primary beneficiary of increased ...

Cloud and Managed Services Spending Forecast

Gartner recently shared their top technology predictions. They said that increased transparency -- and the need to drive business value -- are bringing disruptive change to IT organizations in 2011 and beyond. One of their key findings: cloud computing will enable many organizations to exploit internal capabilities to establish new business service revenue streams. Other informed industry analysts share a similar point of view. Businesses are increasingly moving their computing and collaboration applications to the cloud, and their shift in IT spending reflects that change in behavior. A recent market study by In-Stat forecasts cloud computing and managed hosting spending by U.S. businesses will surpass $13 billion in 2014, up from less than 3 billion today. “Although spending across all sectors and size of business is projected to grow, there are some segments where growth will be staggering,” says Greg Potter, Research Analyst at In-Stat. Apparently, based on In-Stat’s ass...

Global Alliance Paves Way for Enterprise Cloud Services

Orange Business Services together with Cisco, EMC and VMware have formed a business alliance, called Flexible 4 Business -- to offer end-to-end cloud computing services for enterprises. This business alliance will help customers easily transition to cloud computing and gain the infrastructure flexibility, cost reduction and business performance optimization cloud computing enables. Orange Business Services will be the service provider for the business alliance and will deliver the four types of pay-per-use managed cloud solutions based on the industry-leading technologies from the four partners. Through Orange Business Services cloud portfolio supported by the Flexible 4 Business alliance, enterprises can realize the benefits of having IT as a service without the concern of building their own cloud computing infrastructure. Through a single service provider, customers will be able to accelerate the deployment of highly secure cloud services across their enterprise while reducing man...

Managed Security Services Gaining Adoption

Enterprise leaders say that it's becoming difficult to find the highly qualified IT and network security talent they need that's affordable, and so they look to service providers for a solution. According to the latest market study by Forrester Research , demand has been growing. That said, Forrester believes that using a managed security services provider (MSSP) is more than just a lower-cost alternative to doing the same work in-house. MSSPs are not just managing devices, they also provide insightful analysis that can help with business decisions. CIOs and other business technology leaders used to resist out-tasking their IT and network security requirements. The talent scarcity issue has helped to change that mindset. Now, one in four out-task their email filtering, and another 12 percent are very interested in doing so in the next 12 months. Another 13 percent already out-task their vulnerability management and an additional 19 percent say they are very interested in doing ...

Public, Hosted, and Internal Clouds Defined

Like any new business technology, the early development of cloud services can be a little confusing -- as some descriptions are still open to interpretation. However, the dialog is helpful, because it enables us to focus on the true business value of data center resources. According to Forrester Research , cloud computing platforms are more than shared multi-tenant infrastructures on the public Internet. There are three infrastructure-as-a-service (IaaS) cloud deployment options available; each has unique characteristics and economics. Forrester’s three cloud service scenarios follow: Which cloud service scenario is a best-fit for your business needs? Well, that depends upon a number of related factors -- such as your organizational bias for direct control, sensitivity to risk, and overall usage requirements for a cloud computing platform. Public Cloud Scenario Public clouds are easily accessible, multi-tenant virtualized infrastructures that are managed via a self-service portal. The...

Discover the Pathway to Cloud Services

Do you have your head in the clouds? Well, if so, then you're surely not alone. In breaking news, eWeek reports that Cisco Systems is pulling together key pieces of its data center and networking portfolios to create a blueprint for building a cloud computing infrastructure for service providers. Is this yet another business technology hype-cycle, or is there something truly remarkable occurring that builds upon the escalating widespread adoption of IT managed service and hosting service offerings? Cisco's Simon Aspinall provides the context for the launch of the Unified Service Delivery solution , as he shares an analogy that explains why innovation sometimes requires starting the design process from a totally different point of view. The cloud computing phenomenon is generating a lot of interest worldwide because of its potential to offer services on-demand -- at lower cost than current options, and with significantly less complexity, greater scalability, and wider reach. Mo...