March 7, 2017
Often, other countries are a bit ahead of the curve than we are here in the states. For example, the United Kingdom has just told three of the biggest cloud services providers there, Apple, Microsoft and Amazon, to straighten up and fly right when it comes to consumer cloud service offering. It seems the contracts were a bit tipped to the provider’s favor. It had done the same with Google, Dropbox and five other cloud storage providers last year.
All in all, these cloud service providers have had to get a bit more user friendly of late. But with a little history, one could say it is a work in progress. Similar situations exist in other European Union nations as well as in the United States.
One issue deals with any changes to, or ending of, the provision of the cloud service. Up to now, there were no provisions to advise the consumer if things were about to go south with the cloud provider. Kind of like showing up at your cleaners to find a IRS notice on the door and all the equipment and clothes confiscated. With the cloud, there were no provisions to notify the customer of any change in terms, suspension of service or eliminating services. Data was at risk.
On the brighter side, there is a lot of optimism in cloud services. According to IDC, as enterprises across the world increased investment, overall public spending is expected to surge 21.5 percent by 2020, to $203.4 billion worldwide, which is nearly seven times the rate of overall IT spending growth.
Much of this investment will be in software as a service (SaaS), which is expected to remain the dominant cloud computing type, capturing nearly two-thirds of all public cloud spending in 2017 and roughly 60 percent in 2020.
Last year proved to be a bit of a surprise in the growth of the cloud, now that some of the yearly numbers are available. As it turns out, the final number for the cloud market in 2016 topped $148 billon on an annualized basis. And the trends shows no signs of slowing.
The major players such as Amazon Web Services, Microsoft, IBM, Rackspace and Salesforce all showed significant growth in six key markets: infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), hosted private cloud, enterprise software-as-a-service (SaaS), unified communications-as-a-service (UCaaS), public cloud and private cloud. The table below presents the data in a more detail.
What is interesting is that, in 2016, the spending on cloud services has overtaken the spending on cloud infrastructure hardware and software, according to Synergy Research Group. In aggregate, the cloud service markets are now growing three times more quickly than the cloud infrastructure hardware and software market.
According to new research data from Synergy Research, some of the XaaS segments are showing phenominal growth. The IaaS and PaaS segment experienced the highest growth rate at 53 percent. This was followed by hosted private cloud infrastructure services at 35 percent and enterprise software-as-a-service at 34 percent.
It appears that 2016 was the year that the cloud started to dominate many IT market segments. The coming year looks like it will put the cloud out there as a mainstream platform with most of the barriers to implementation becoming a thing of the past.