Cloud adoption continues to expand. In a report published by Forrester (April 2011), the total size of the public cloud market is estimated at $25B and is projected to grow to $160B by 2020. In addition, a recent Morgan Stanley survey (May 2011) conducted by Morgan Stanley establishes that public cloud usage is expected to show a 23% CAGR through 2014.
SMBs are leveraging the cloud to significantly reduce their hardware costs, while larger enterprises are using public clouds more for rapidly extending the functionality of internally developed applications, with extensions to facilitate mobility as one of the most common applications.
Furthermore, larger organizations are accessing the cloud for executing compute-intensive workloads like analytics. As 37% of companies surveyed indicated they would solely use public cloud deployments, the remainder are gravitating toward the three types of cloud deployment: public, private and hybrid.
Research shows that companies view cloud computing as a way to:
- Lower IT costs,
- Increase corporate agility, and
- Provide the foundation for leading edge, flexible architectures that will result in higher quality systems.
However, the top barriers to cloud adoption continue to be:
- Regulatory and compliance issues,
- Data privacy
- Vendor lock-in and
Interestingly customers don’t always feel that public clouds are less secure than their own data centers.
GigaOm ranks Amazon as the largest public cloud provider with 2010 revenue of $500MM and they continue to expand their AWS through investment. Rackspace, Salesforce, Microsoft, Google, IBM, and other global entities also are targeting to be providers of public cloud infrastructure and services, making multi-million dollar investments to remain competitive in offerings and price.