{"id":2105,"date":"2011-05-13T07:00:53","date_gmt":"2011-05-13T15:00:53","guid":{"rendered":"http:\/\/www.formtek.com\/blog\/?p=2105"},"modified":"2011-05-13T07:00:53","modified_gmt":"2011-05-13T15:00:53","slug":"cloud-computing-despite-obstacles-rapid-growth","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/cloud-computing-despite-obstacles-rapid-growth\/","title":{"rendered":"Cloud Computing: Despite Obstacles, Rapid Growth"},"content":{"rendered":"<p>It may be tinged with a bit of <a title=\"Irrational Exuberance\" href=\"http:\/\/en.wikipedia.org\/wiki\/Irrational_exuberance\" target=\"_blank\">irrational exuberance<\/a>, but cloud computing seems to be on an unstoppable upward projectile. \u00a0<a title=\"Forrester Research on Cloud Computing\" href=\"http:\/\/www.forrester.com\/rb\/Research\/sizing_cloud\/q\/id\/58161\/t\/2\" target=\"_blank\">Forrester Research<\/a> is predicting that the market size of Cloud Computing is expected to grow by a factor of six, from roughly a $41 billion market today, to one that will be $241 billion in 2020.<\/p>\n<p>The report breaks down Cloud computing into four components:<\/p>\n<ul>\n<li><a title=\"Business Processes as a Serice\" href=\"http:\/\/www.equaterra.com\/Library\/By-Topic\/Current-Trends-and-News\/Enterprises-show-signs-of-adopting-Business-Process-as-a-Service-(BPaaS)-as-modular-components-1923C1160.html\" target=\"_blank\"><strong>BPaaS<\/strong> <\/a>(Business Processes as a Service)<\/li>\n<li><a title=\"Platform as a Service\" href=\"http:\/\/en.wikipedia.org\/wiki\/Platform_as_a_service\" target=\"_blank\"><strong>PaaS<\/strong> <\/a>(Platform as a Service)<\/li>\n<li><a title=\"Infrastructure as a Service\" href=\"http:\/\/en.wikipedia.org\/wiki\/Infrastructure_as_a_service#Infrastructure\" target=\"_blank\"><strong>IaaS<\/strong> <\/a>(Infrastructure as a Service)<\/li>\n<li><strong><a title=\"Software as a Service\" href=\"http:\/\/en.wikipedia.org\/wiki\/Software_as_a_service\" target=\"_blank\">SaaS <\/a><\/strong>(Software as a Service)<\/li>\n<\/ul>\n<p>The report finds that:<\/p>\n<ul>\n<li>BPaaS will begin to build traction but will not play a leading role in cloud computing services<\/li>\n<li>SaaS will be the biggest component of the Cloud Computing market. \u00a0The report sees the existing $21.2 billion SaaS market to grow to $92.6 billion in 2016 and then begin to plateau.<\/li>\n<li>IaaS similarly is expected to grow to about $5.9 billion by 2014, but then commoditization and vendor competition is expected to erode pricing, causing growth to plateau and even begin to decline.<\/li>\n<li>PaaS is expected to growing quickly but also plateau<\/li>\n<li>Forrester also predicts that virtualization which is hot today will be superceded by newer technologies.<\/li>\n<\/ul>\n<p>The report notes tha &#8220;vendor strategists should not get carried away by lofty market expectations. Some cloud markets will face significant commoditisation; other markets are still very young, with low market adoption,&#8221; the analysts warned.<\/p>\n<div id=\"_mcePaste\">&#8220;As several cloud markets are growing by cannibalising existing markets, vendors also need to consider the relationship of their new cloud activities with their current business model.<\/div>\n<div id=\"_mcePaste\">Vendor strategists should not get carried away by lofty market expectations. \u00a0Some cloud markets will face significant commoditization; \u00a0other markets are still very young, with low market adoption. \u00a0As several cloud markets are growing by cannibalizing existing markets, vendors also need to consider the relationship of their new cloud activities with their current business model.&#8221;<\/div>\n<div class=\"lightsocial_container\"><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" 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