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Posts from the ‘Cisco’ Category

Jan 17

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Roundup of Cloud Computing Forecasts and Market Estimates, 2012

The latest round of cloud computing forecasts released by Cisco, Deloitte, IDC, Forrester, Gartner, The 451 Group and others show how rapidly cloud computing’s adoption in enterprises is happening.  The better forecasts quantify just how and where adoption is and isn’t occurring and why.

Overall, this year’s forecasts have taken into account enterprise constraints more realistically  than prior years, yielding a more reasonable set of market estimates.  There still is much hype surrounding cloud computing forecasts as can be seen from some of the huge growth rates and market size estimates.  With the direction of forecasting by vertical market and process area however, constraints are making the market estimates more realistic.

I’ve summarized the links below for your reference:

  • According to IDC, by 2015, about 24% of all new business software purchases will be of service-enabled software with SaaS delivery being 13.1% of worldwide software spending.  IDC further predicts that 14.4% of applications spending will be SaaS-based in the same time period. Source: http://www.idc.com/getdoc.jsp?containerId=232239
  • The cloud computing marketplace will reach $16.7B in revenue by 2013, according to a new report from the 451 Market Monitor, a market-sizing and forecasting service from The 451 Group. Including the large and well-established software-as-a-service (SaaS) category, cloud computing will grow from revenue of $8.7B 2010 to $16.7B in 2013, a compound annual growth rate (CAGR) of 24%. https://451research.com/
  • Forrester forecasts that the global market for cloud computing will grow from $40.7 billion in 2011 to more than $241 billion in 2020. The total size of the public cloud market will grow from $25.5 billion in 2011 to $159.3 billion in 2020. Link to report excerpt is here.
  • Deloitte is predicting cloud-based applications will replace 2.34% of enterprise IT spending in 2014 rising 14.49% in 2020.  The  slide below  is from an excellent presentation by Deloitte titled Cloud Computing Forecast Change downloadable from this link.

  • Gartner predicts Small & Medium Business (SMB) in the insurance industry will have a higher rate of cloud adoption (34%) compared to their enterprise counterparts (27%).  Gartner cites that insurance industry’s opportunity to significant improve core process areas through the use of technology.  The following figure from the report, 2011 SMB Versus Enterprise Software Budget Allocation to Annual Subscriptions indicates the differences in software budget allocation for annual subscriptions by vertical market from the report:

2011 SMB Versus Enterprise Software Budget Allocation to Annual Subscriptions

  • Gartner is predicting that the cloud system infrastructure (cloud IaaS) market to grow by 47.8% through 2015. The research firm advises outsourcers not moving in that direction that consolidation and cannibalization will occur in the 2013 – 2014 timeframe  The providers named most often by respondents were Amazon (34%), SunGard (30%) and Verizon Business (30%). Of the global top 10 IT outsourcing market leaders, only CSC appears on the list. Source: User Survey Analysis: Infrastructure as a Service, the 2011 Uptake  Claudio Da Rold,  Allie Young.

External Service Providers Being Considered for IaaS (or Cloud IaaS)

Mar 7

Evolving the Data Center to the Private Cloud

According to what Cisco is seeing in the market, the transition to private clouds starts with consolidation of systems and applications to reduce costs, followed by a targeted virtualization strategy.

Cisco sees this as a step to making their customers’ businesses more aligned to line-of-business strategies and goals.  The final step is automation, which is the transformation of IT into a foundation for business strategies and future growth.

The following Cisco presentation has several interesting insights into how they are working with their clients to transition from data centers to private clouds.  Results customers are achieving are provided throughout the slide deck, which provide a glimpse into the cost, time, and strategy savings from moving to private cloud architecture.

Cisco treads a fine line between showing a private cloud architecture that is entirely proprietary (like Oracle) and educating the market on how they see private clouds evolving.  They do this by showing how commitment their product strategies are to open integration standards and how critical they see aligning to business strategies first.  The net result is a useful 38-page presentation that is worth checking out, to see how they view the progression of data centers to private clouds occurring in the years to come.

Note: I’m not working for Cisco and they did not pay me to write this.

Flickr attribution: http://www.flickr.com/photos/zengame/265839487/

Oct 16

Network Service Providers as Cloud Providers – New Report From Cisco on Cloud Computing Landscape

In August, 2010 Cisco completed a study that included interviews with 80 enterprise IT decision makers (CIOs, CTOs, and infrastructure VPs) from 43 enterprises and public-sector organizations across industries throughout the US, Europe and India.  In addition, Cisco completed one-one-one interviews with 20 subject-matter experts.

The primary focus of the study was on the adoption of the public cloud for enterprise applications.  The report  Network Service Providers as Cloud Providers Survey Shows Cloud Provision Is a Bright Option can be downloaded here.

Key Take-Aways:

Cisco forecasts that the global market for Cloud Computing Service Revenue will be $43.8B by 2013, with SaaS contributing $29.5B, or 6 7%. Workload migration will also be the greatest in that segment as well.  The study provides additional insight into the IaaS and PaaS key success factors and the implications network service providers. (Click on image to expand it for ease of reading).

The study found that in the Business Processing segment, the greatest near-term opportunity is in SaaS-based ERP, which according to this study is predicted to reach a 13% adoption rate by 2013. This is consistent with International Data Corporation estimates of SaaS-based ERP adoption in comparable time periods.  ERP’s growth on the SaaS platform continues to be constrained by lack of Master Data Management (MDM) functionality, lack of a pervasive mobile APIs on the several SaaS ERP systems launched, and concerns over security of costing. ordering, production, and quality management data. (Click on image to expand it for ease of reading).

Mar 24

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Ada Lovelace Day and a short video from Padmasree Warrior of Cisco on Cloud Services

Celebrating women’s accomplishments and thought leadership in science and technology, Ada Lovelace Day needs to permeate the cultures of the world. Only when that happens will the coming generations of women have a chance to make the most of their potential in these areas.

Padmasree Warrior of Cisco is a case in point of why this day and the thought behind it are important, especially for young women who are gifted in math and science, seeking role models.

Hidden Brilliance That Needs To See the Light of Day

In the graduate courses I’ve taught the most surprising aspect of any class are the women of exceptional brilliance that tend to hide their intelligence in science and math, only to show exceptional command of complex concepts on tests. These women, many from Asian, Middle Eastern and Eastern European cultures, would never engage in a fiery debate over the ethics of the Internet censorship in China or the best approach to defining an ERP system for a given case study. Yet when they put pen to paper as part of our case studies their work is perfect. Flawless. Excellent. The ones who attended British schools in Hong Kong analyze and write at a level that is well beyond their peers. They have so much talent yet such a reluctance to make the most of it. These are the women who need to hear about Ada Lovelace.

Padmasree Warrior, Senior VP and CTO of Cisco Systems Speaking on Cloud Services

In the following video clip Padmasree Warrior explains the fundamentals of Cisco’s Unified Service Delivery, a key component of their foundation for Cloud Services. At 5 minutes it’s worth watching and listening to.

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Feb 25

Understanding the Differences between Private and Public Cloud Computing

Included is an assessment of the integration requirements by Cloud type. At just over 3 minutes it’s an excellent summary of the differences between Cloud Computing platforms and provides a useful context to understand these two concepts.

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