Lower Cost Drives Cloud Services Growth
Business technology has gone through several major changes over the
decades. Each transformation brought new ways to perform work -- it
also allowed some organizations to leapfrog over their less-agile
competition.
"Today's CEO concerns provide an advanced look at
what will become CIO priorities in six to 18 months," said Jorge Lopez,
vice president at Gartner, Inc. The focus for the IT agenda in the face
of economic uncertainty and risk is flexibility, and renewed business
agility.
According to Gartner's assessment, CIOs need to ensure
that their IT operations are ready for the ongoing challenges and
shifts that are sure to emerge.
Defined as the ability to achieve financial and strategic plans,
effectiveness
gives enterprises the flexibility to meet challenge with change. So,
how will CIOs improve effectiveness to meet new economic and
operational challenges?
Business Imperative for Cloud-based ServicesIT
leaders are increasingly being asked to move all non-strategic IT
functions to the cloud; to develop IT core competencies and skills to
manage virtual resources; and to embrace new applications that
capitalize on cloud computing, collaboration, mobility and social media.
Worldwide
cloud services revenue will reach $56.3 billion in 2009, a 21.3 percent
increase from 2008, according to the latest study by Gartner. The
market is expected to reach $150.1 billion in 2013.
Much of the cloud computing news centers on systems infrastructure as a
service (IaaS). In 2008, these services accounted for only 5.5 percent
of the overall cloud services market and are forecast to reach 6
percent in 2009.
"Cloud-based infrastructure services are
expected to see significant adoption through 2013," said Ben Pring,
vice president at Gartner. "This segment probably has the largest range
of possible outcomes, depending on how aggressively cloud computing is
embraced."
Cloud application services, evolving from
software as a service (SaaS) offerings, were almost twice as large as the market for systems infrastructure and will continue to show strong growth.
Lower Cost Drives Cloud Services GrowthOver
the next five years an increasing array of application functionality
will become available as IT managed cloud services -- to supplement
those current cloud applications.
"The IT market trends for the
next couple of years remain highly uncertain. While short-term growth
is expected to be inhibited, the potentially lower cost of cloud
services is attractive to customers and will drive growth for these
offerings," said Mr. Pring.
Given that backdrop, what new demand are you experiencing for cloud-based services? Are you reaching out to
service providers, to learn more about their evolving on-demand service offerings?
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