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Cloud Computing: IT Vendors Need to Adopt the Cloud to Remain Relevant
Cloud computing is expected to grow to be a $9.4 billion market by 2015. IDC and IDG Enterprise issued a report last month that provided that estimate, with about a third of the revenues going to the public cloud, and the other two thirds going towards enterprise private clouds.
In terms of actual physical server boxes, IDC forecasts that the number of new public cloud servers to roll out in 2015 will reach 1.2 million. For the private cloud, IDC is forecasting 570,000 new servers to be deployed into private clouds. Those numbers though seem flipped, considering that the private cloud is expected to generate nearly twice as many revenues as the public one.
IDC offers the explanation that the higher cost for private cloud servers comes about because public cloud servers tend to be simpler, off-the-shelf units that emphasize energy efficiency, density, and cost control. In contrast, private cloud servers typically have significantly more memory, are optimized for higher I/O bandwidth and come with more advanced CPU capabilities.
The IDC report predicts that cloud computing will dramatically transform data centers. IDC suggests that to remain relevant IT vendors will need to adopt the cloud or become irrelevant. As early as 2014, 30 percent of IT organizations will also provide cloud services. SaaS deployments will increasingly become the norm rather than the exception, and that this shift will cause IT vendors of all types to provide cloud-based software and service options.
