Abstract
Cloud computing services - the use of Internet to access computing resources
- are poised to rapidly penetrate enterprise and consumer markets. These
services, which encompass a wide range of computing applications, are
initially being deployed in situations where call centers are running out of
capacity and are unable to support peak loads. Notwithstanding concerns about
the reliability of these services, cloud computing is finding acceptance for
non-critical tasks because of low service pricing. The report, “Cloud
Computing: The Wave of the Future,” examines emerging developments in
cloud computing and forecasts future growth. It examines the market from the
points of view of market segments, infrastructure, and applications, and
develops seven-year revenue forecasts.
Methodology
The information presented in this report stems from extensive primary and
secondary research, including numerous in-depth interviews, discussions at
industry forums, and detailed analysis of market trends and developments. In
addition, the report authors performed analysis and modeling using up-to-date
data supplemented by information collected by TELECOM TRENDS INTERNATIONAL for
other similar studies. In particular, the research tools used in this report
include the following:
- Primary research, including interviews
- Secondary research
- Trend tracking
- Forecasting
Interviews
TELECOM TRENDS INTERNATIONAL conducted a series of interviews with key players
across the cloud computing value chain.
Additional Primary and Secondary Research
TELECOM TRENDS INTERNATIONAL reviewed numerous technical white papers,
industry financial statements, trade publications, company websites, and
literature produced by trade associations as well as companies offering
products or services in this space. These sources supplemented information
collected via interviews, providing additional background information and
benchmarks for cross-checking the data gathered during primary research.
Trend Tracking
Since TELECOM TRENDS INTERNATIONAL continuously tracks trends in cloud
computing markets, the report is able to put in context the uptake of cloud
computing sub-segments, taking into consideration the status of data center
technology and other industry developments.
Revenue Forecasts
Based on current pricing information, historical and projected revenue, and
other economic indicators, as well as assessments of deployments, TELECOM TRENDS INTERNATIONAL developed revenue forecasts for various segments of the
cloud computing market.
Table of Contents
1.0 Executive Summary
2.0 Scope and Methodology
- 2.1 Scope
- 2.2 Additional Related Information
- 2.3 Target Audience
- 2.4 Methodology
- 2.4.1 Interviews
- 2.4.2 Additional Primary and Secondary Research
- 2.4.3 Trend Tracking
- 2.4.4 Revenue Forecasts
3.0 The Shifting Computing Environment
- 3.1 Computer Networking
- 3.1.1 Client Devices
- 3.1.2 Servers
- 3.2 Computing Processes
- 3.2.1 Parallel Computing
- 3.2.2 Distributed Computing
- 3.3 Clusters and Grids
- 3.3.1 Cluster Computing
- 3.3.2 Grid Computing
- 3.4 Data Center
- 3.4.1 Technology Trends
- 3.4.2 Market Trends
- 3.5 Virtualization
- 3.5.1 Technology Trends
- 3.5.2 Market Trends
- 3.6 Market Direction
4.0 The Promise of Cloud Computing
- 4.1 Cloud Computing Basics
- 4.1.1 Definitional Overview
- 4.1.2 Industry Groups
- 4.1.3 Role as a Disruptive Technology
- 4.1.4 Cloud Computing and Web 2.0
- 4.1.5 Standardization Activity
- 4.2 Cloud Computing Attributes
- 4.2.1 Technical Attributes
- 4.2.2 Market Attributes
- 4.3 Cloud Computing Enablers
- 4.3.1 Role of the Internet
- 4.3.2 Role of Virtualization
- 4.3.3 Role of Autonomic Computing
- 4.3.4 Role of Open Source
- 4.4 Cloud Computing Drivers and Inhibitors
- 4.4.1 Demand Drivers
- 4.4.2 Demand Inhibitors
- 4.5 Cloud Computing Timeline
- 4.5.1 Phase 1
- 4.5.2 Phase 2
- 4.5.3 Phase 3
- 4.6 Market Direction
5.0 The Issues of Security
- 5.1 Security Parameters
- 5.1.1 Confidentiality and Identity Management
- 5.1.2 Data Integrity
- 5.1.3 Availability
- 5.2 Cloud Provider and Customer Roles
- 5.2.1 Role of the Cloud Provider
- 5.2.2 Role of the Cloud Customer
- 5.3 Security of Data Transport
- 5.3.1 Transmission Integrity
- 5.3.2 IP Transport
- 5.4 Cloud Security Advantages and Disadvantages
- 5.4.1 Cloud Security Advantages
- 5.4.2 Cloud Security Disadvantages
- 5.5 Cloud Computing and Start-Ups
- 5.6 Ensuring Cloud Security
- 5.6.1 Accreditation Process
- 5.6.2 Corporate Clouds
- 5.7 Market Direction
6.0 Cloud Computing Classifications
- 6.1 Market Segments
- 6.1.1 Public Cloud
- 6.1.2 Private Cloud
- 6.1.3 Hybrid Cloud
- 6.2 Application Segments
- 6.2.1 Computing
- 6.2.2 Storage
- 6.2.3 Content Delivery
- 6.2.4 Database
- 6.3 Service Delivery Models
- 6.3.1 Infrastructure as a Service
- 6.3.2 Software as a Service
- 6.3.3 Platform as a Service
- 6.4 Market Direction
7.0 Cloud Computing Cost Analysis
- 7.1 Cost Comparisons
- 7.1.1 Basic Assumptions
- 7.1.2 Assumptions on Quantity and Capacity of Equipment
- 7.2 Data Center Costs
- 7.3 Cloud Computing Costs
- 7.3.1 Scenario 1
- 7.3.2 Scenario 2
- 7.4 Cost Analysis
8.0 Vendor Analysis
- 8.1 Vendor Strategies
- 8.2 Vendor Profiles
- 8.2.1 3Tera
- 8.2.2 Amazon.com, Inc.
- 8.2.3 Cisco Systems
- 8.2.4 Dell Inc.
- 8.2.5 EMC Corporation
- 8.2.6 Google Inc.
- 8.2.7 IBM Corporation
- 8.2.8 Joyent
- 8.2.9 Microsoft Corporation
- 8.2.10 Oracle Corporation
- 8.2.11 Rackspace Hosting, Inc.
- 8.2.12 salesforce.com, Inc.
- 8.2.13 Sun Microsystems, Inc.
- 8.2.14 Terremark Worldwide, Inc.
- 8.2.15 VMware, Inc.
- 8.2.16 Yahoo! Inc.
9.0 Growth Trends and Market Forecasts
- 9.1 Customer Segments
- 9.1.1 Small Businesses
- 9.1.2 Medium-Sized Businesses
- 9.1.3 Large Enterprises
- 9.2 Government Sector
- 9.2.1 U.S. Cloud Computing Initiative
- 9.2.2 U.S. Online Storefront
- 9.2.3 U.S. Regulatory Barriers
- 9.3 Developing Countries
- 9.3.1 Traditional Data Centers
- 9.3.2 Obstacles to Cloud Computing
- 9.3.3 Governments' Role in Cloud Computing
- 9.3.4 Implications of Clouds for Developers
- 9.3.5 The Role of World Bank
- 9.3.6 Strategies for Moving to the Cloud
- 9.4 Cloud Computing Services Revenue Forecast
- 9.5 Cloud Computing Services Revenue by Market Segments
- 9.5.1 Growth Rate by Market Segments
- 9.5.2 Forecast by Market Segments
- 9.6 Cloud Computing Services Revenue by Applications
- 9.6.1 Growth Rate by Applications
- 9.6.2 Forecast by Applications
- 9.7 Cloud Computing Services Revenue by Service Delivery Models
- 9.7.1 Growth Rate by Service Delivery Model
- 9.7.2 Forecast by Service Delivery Model
- 9.8 Market Direction
10.0 Report Conclusions
Appendix 1: Companies to Watch
Appendix 2: Acronyms Used in the Report
List of Figures
- Figure 1: Open Cloud Consortium' s Test Bed
- Figure 2: Renting Cloud Resources Based on Rates set by Vendor vs.
Setting-Up and Running Data Center
- Figure 3: Renting Cloud Resources Based on Proposed Rates vs. Setting-Up
and Running Data Center
- Figure 4: Cloud Computing Annual Services Revenue, 2008-2015 (in billions)
- Figure 5: Cloud Computing Services Revenue by Market Segments, 2008-2015
(in billions)
- Figure 6: Cloud Computing Services Revenue Growth by Market Segments,
2008-2015 (in percentages)
- Figure 7: Cloud Computing Services Revenue by Applications, 2008-2015 (in
billions)
- Figure 8: Cloud Computing Services Revenue Growth by Applications,
2008-2015 (in percentages)
- Figure 9: Cloud Computing Services Revenue by Service Delivery Model,
2008-2015 (in billions)
- Figure 10: Cloud Computing Services Revenue Growth by Service Delivery
Model, 2008-2015 (in percentages)
List of Tables
- Table 1: Advantages of Using a Cloud
- Table 2: Disadvantages of Using a Cloud
- Table 3: Equipment by business type: Assumptions for equipment quantity
and capacity
- Table 4: Equipment and Human Resources Costs over the Data Center Lifecycle
- Table 5: Both Scenarios: Assumptions Regarding Computing Time, Storage,
and Data Transfer Rate
- Table 6: Vendor Rates at the Time of the Service Launch
- Table 7: Assumed Charges for Storage, Computing Time, and Data Transfer
- Table 8: Proposed Per Unit Rates for Cloud Computing
- Table 9: Assumed Total Charges for Cloud Computing
- Table 10: Cloud Computing Services Revenue by Market Segments, 2008-2015
(in billions)
- Table 11: Cloud Computing Services Revenue by Applications, 2008-2015 (in
billions)
- Table 12: Cloud Computing Services Revenue by Service Delivery Model,
2008-2015 (in billions)
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