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Posts from the ‘Federal Cloud Computing’ Category

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)

Federal Cloud Computing Strategy Update

The following short slide deck provides insights into the challenges facing the US government in streamlining its use of IT and the promising results achieved to date.  Vivek Kundra, U.S. Chief Technology Officer authored these slides, which taken together underscore the urgency of managing government IT to performance benchmarks.  Highlights from this short deck include the following points:

  • The typical U.S. Government Server has a 27% Manufacturing Capacity Utilization Rate, while the industry standard Manufacturing Capacity Average Utilization is 79%.
  • From 1998 to 2010, the U.S. Government grew its total data centers from 432 to 2,094.  IBM had 235 data centers in 1997 and 12 by 2009.
  • Vivek Kundra estimates $20B of the total $80B US Federal Budget on IT will be for Cloud-based spending in 2012.
  • Department of Homeland Security (DHS), U.S. Treasury and Department of Defense are the three largest potential consumers of cloud computing IT systems and services according to Mr. Kundra’s analysis. His slides show that an estimates $2.5B spending each for DHS and Treasury departments alone.
  • The benefits of having a more coordinated IT plan government-wide are also shared briefly.  Health and Human Services (HHS) for example has been able to significantly reduce go-live dates of systems from over a year to 3 months and have made electronic medical records available to approximately 100,000 practitioners. Cloud e-mail migration at the General Service Administration (GSA) and two projects at the Department of Defense are also profiled in this short deck.

flickr attribution: http://www.flickr.com/photos/missycaulk/4143925422/

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