cloud infrastructure as a service market update
TRANSCRIPT
U.S. Cloud Infrastructure as a Service (IaaS) Market Update, 2013
Steady Growth Across all Segments
Roopa HonnachariProgram Manager – Business
Communication ServicesJune 19, 2013
© 2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
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Today’s Presenter
• Industry Expertise includes –
• Evolving Network Services ( MPLS and Carrier Ethernet), Data Center Services and Cloud Computing.
• Specialization in analyzing Cloud implications on communication service provider business – emergence of
“everything as a service” model.
• Functional expertise includes –
• Providing strategic advice to companies on new market entry, new product/service development market share
expansion and partnership development
• Building market revenue forecasts, pricing forecasts, market share analysis and competitive analysis reports
• 11 years of market research, growth consulting, and technical marketing in the Telecom industry.
Roopa Honnachari, Program ManagerFrost & Sullivan
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Agenda
• Defining Cloud IaaS
• Why Should You Care About Cloud IaaS?
• Market Drivers & Restraints
• Market Revenue Evolution
• Competitive Landscape
• Key Takeaways
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Defining Cloud IaaS - What’s Included?
Hosted, scalable data center infrastructure resources, available on-demand, without term or usage commitments, and charged via a pay-per-use model. IaaS comprises “raw” infrastructure, onto which users can build and deploy
applications or workloads.
Cloud Services Market
IaaS
Hosted Private Cloud
Storage as a Service
Computing as a
Service
Public Cloud
PaaS SaaS
Included in sizing
Excluded from sizing
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Why Should you care about the Cloud IaaS market?
MEASUREMENT NAME MEASUREMENT TREND
Market Stage (Nascent, Growth, Mature) Growth —
Market Revenue (2012) $3.02 B ▲
Base Year Market Growth Rate (2011 to 2012) 78.4% ▲
Compound Annual Growth Rate (CAGR), 2012-2016 60.0% —
Customer Price Sensitivity (scale of 1 to 10, Low to High) 8 ▼
Number of Competitors 20+ ▲
Market Concentration (% of base year market controlled by top four
competitors)
85% ▼
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Market Drivers
• Decrease IT infrastructure costs
• Cited by 55 percent of IT decision makers as a key driver for IaaS adoption
• Support for business continuity and disaster recovery plans
• Cited by 35 percent of IT decision makers as a key driver for IaaS adoption
• Improve security and compliance profile
• Cited by 25 percent of IT decision makers as a key driver for IaaS adoption
• Reduce IT staff
• Cited by 35 percent of IT decision makers as a key driver for IaaS adoption
Source: 2012 Frost & Sullivan Cloud End User Survey. N=108
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Market Restraints
• Concerns about application performance and reliability
• Cited by 71 percent of respondents as a top restraint to cloud IaaS adoption
• Unwillingness to recede control
• Cited by 65 percent of respondents as a top restraint to cloud IaaS adoption
• Concerns about security risks
• Cited by 58 percent of respondents as a top restraint to cloud IaaS adoption
• Concerns about regulatory compliance
• Cited by 55 percent of respondents as a top restraint to cloud IaaS adoption
Source: 2012 Frost & Sullivan Cloud End User Survey. N=108
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Market Revenue Trends - $ 3 Billion in 2012 Revenues
Source: Frost & Sullivan
73%
27%
2012 Revenue breakdown by Compute vs. Storage
Compute Storage
88%12%
2012 Revenue breakdown by Public vs Hosted Private IaaS
Public Hosted Private
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Competitive Landscape
Amazon Web Services
Rackspace
Verizon/Terremark
SAVVIS/CenturyLink
Others
Infrastructure as a Service Market: Market Share Analysis (U.S.), 2012
“Others” category includes Microsoft, GoGrid, AT&T, SoftLayer, Windstream, NewServers,
EMC, HP, IBM, Virtustream and several other small providers.
Source: Frost & Sullivan
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Key Takeaways
•IaaS adoption is growing, as enterprises increasingly turn to cloud-based IT model
to reduce their capital expenditure.
•The 2012 initiatives from leading cloud IaaS providers—to launch public cloud
offerings and object-based storage offerings—are a testament to the fact that
market demand for bare-metal IaaS continues to grow.
•As enterprise-class IaaS services evolve, providers will take greater responsibility
for security, compliance, backup and recovery, and application delivery—with the
additional functionality either “baked in” to their services or available as an option.
•The future IT landscape will be a hybrid one, combining multiple cloud and
traditional environments under the management of a single enterprise.
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Questions?
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Detailed TOC
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For Additional Information
Mireya EspinozaCorporate CommunicationsInformation & Communication Technologies(210) [email protected]
Roopashree (Roopa) HonnachariProgram Manager, Business Communication Services - ICT Stratecast | Frost & [email protected] www.twitter.com/roopa_shree
Lynda Stadtmueller Program Director | Cloud Computing Stratecast | Frost & Sullivan [email protected]
Perry Somers,Director of Business Development, Stratecast | Frost & [email protected] P: 360.416.4982