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Thursday
Aug222013

Growth Factors: IaaS Numbers and Expectations.

Lots of new IaaS reporting going on this week.  Gartner has a new Cloud Magic Quadrant, and Synergy Research Group has a new report on cloud market size and growth.  

The problem I have with the IaaS revenue numbers comes down to this: AWS hides them. IBM has been called on the carpet for being 'over-inclusive' in its reporting. The combination of IaaS/PaaS numbers into one figure for Microsoft and Google disguises the fact that MSFT and GOOG both started in Platform Services first, and have only recently offered up 'pure' infrastructure services. 

The important factors of IaaS/PaaS accelerated growth are these:

[1] Infrastructure Service adoption -- new customers and the expanded use by existing customers -- in all market segments and among all the enterpise size classes is explosive.  The opinion that "enterprise won't put their [data | processing] in the Cloud" is bogus.  We're all -- ALL -- using cloud infrastructures, and will continue to add new data and processing to the cloud as comfort levels increase.

[2] The growth in IaaS and PaaS will continue on this path, and probably see acceleration, as enterprise and government customers become 'comfortable' with the upcoming offerings for cloud data management (e.g., security, privacy, distribution, meta-data generation, …) and for 'cloud automation' that includes APPLICATIONs, not just infrastructure configuration management. (We really need the cloud punditry to get straight on what it refers to when using the term 'orchestration.')

[3] Finally, just as Infrastructure Services understand the value of giving development and operational IT communities self-service and the ability to 'have it their way', they will recognize the need for fine-grained, customized alternatives for consumption and economic terms.  That is, more choice in the packaging and economic terms on which Infrastructure Services are procured.

On this last point: I expect considerable push back from enterprise customers on the measly number of choices they have to procure on-demand IaaS at either (a) rack rates using a credit card or (b) 'reserved' use in one-year or three year packages.  That is  far too little operational and economic choice.  The same kind of late-binding, fine-grained control the characterizes cloud development, deployment and functionality needs to be available to the businsess functions of IaaS/PaaS procurement, metering and billing.

More proof that Amazon still leads the IaaS pack, but watch out for those other dogs — Tech News and Analysis:

Amazon leads Google, IBM, and Microsoft in cloud. So what else is new? The fact that the other guys are growing like weeds.

 

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