ESDS Knowledge Base


Public Cloud Market Is Expected To Grow Nearly 7 Times By 2014

According to studies conducted by research team, India is the country that has more interest in cloud computing when compared with other countries. Currently, 18% of medium and large companies already use some applications on cloud computing.

By the end of 2013, this share should jump 30% to 35%, that number is about 60% larger than the current base. Elsewhere in foreign countires, 14.5% of companies have or plan to have some kind of application.

“Cloud is no longer a hype” said Mr. Piyush Somani, MD and CEO of ESDS Software Solution Pvt. Ltd. “About 98% of companies consulted believe that this technology is here to stay, although there are many concerns about security and pricing”, he said. In India, between 45% and 55% of medium and large companies already use some cloud service.

In some foreign countries, the number is between 35% and 40%.

Analyzing the global market, the research team estimates that companies are spending $ 10 billion in Private Cloud applications such as servers, storage and networking, for example.

The global spending on servers, networks and storage systems dedicated to Cloud market should reach $ 15 billion, a figure that represents 5% of total spending on technologies, which proves that this percentage will represent 25% of spending on technology by 2015 – ie a 5% increase per year over the next 4 years.

In India, 80% of investments will be directed to the implementation of environments that will be blend with the Public and Private Cloud Solutions.

The research also talks about cost reduction, the ability to pay for use and elasticity systems are among the attributes most valued by IT areas in India when asked about the expected benefits of a Cloud environment.

The lack of governance practices and metrics that reveal the actual costs of IT environments is the main point to be evaluated in the Cloud market.

Few companies have, in fact, the tools and indicators needed to know in depth cost and criticality of each application or IT service.

In a scenario where the hardware is increasingly inexpensive and licensing models changing rapidly, it is imperative that new components are added to the equations of IT value, to take into account more components linked to business (such as service levels, capacity response and opportunity cost) and not only those related to IT assets (such as the cost of hardware and software) and the old practice of calculating income versus expenses.

The research analyzes the evolution of cloud computing and cloud hosting market since the beginning of business and follows the main challenges faced by CEOs. Currently 85% are investing in the operation of resources and only 15% on innovation. The ideal would be to have at least 30% to the area of innovation.

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