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Cloud Computing: Technology Market Penetration and Roadmapping

Frost & Sullivan, June 2010, Pages: 66


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The Frost & Sullivan research service titled Cloud Computing: Technology Market Penetration and Roadmapping analyzes and assesses the diverse factors influencing the development and adoption of cloud computing. In this research, Frost & Sullivan’s expert analysts examine the following market segments: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS).

This research service offers insights on the cloud computing domain by elaborating on the technology penetration trends and also on the roadmap by evaluation of cloud models

Technology Overview

Cloud Computing Provides an Exciting IT Delivery Paradigm

Regarded as a breakthrough technology within the IT landscape, cloud computing promises to alleviate IT administrators’ constant strain to fulfill the ever-evolving demand for IT services. In this regard, cloud IT can represent a significant cost and agility opportunity as this novel technology can empower IT capacity without the need to invest in additional infrastructure. Moreover, these cloud services can be acquired within a short time frame and conform with the stringent requirements of business operations. The ubiquitous presence of the Internet and wireless networks are driving wider adoption of cloud IT among network administrators. “Cloud IT provides a dynamic platform to ensure companies can efficiently deal with their ever-demanding business needs,” notes the analyst of this research service. “Additionally, via cloud IT, companies and users are only required to the pay for the cloud services they utilize; this could prove to be a big advantage as they no longer need to acquire novel IT infrastructure and can avoid the long process of installing them.” Companies adopting the pay-as-you use model can optimally enhance business operations. Thus, cloud computing not only helps companies ratchet down their IT budgets by eliminating the need for additional infrastructure, it allows them to solely focus on business activities. Additionally, management of cloud infrastructure can be delegated to cloud providers. Considering the volatile market conditions, this will prove to be a major advantage to remain competitive.

Prospects for the market look upbeat; however, security issues are slowing the pace of growth. Both companies and individual users are concerned about the security implications of storing critical data in the cloud. When users store their data with programs hosted on a cloud vendor’s hardware, they lose a certain degree of control over their data. The escalation in the number of cyber attacks has given rise to a great deal of angst, and companies are shying away from the cloud IT option. Potential users prefer to keep their data within their infrastructure to prevent data outage incidents. Nevertheless, with the emergence of a new cloud model, -hybrid cloud – companies are likely to reconsider the prospect of adopting cloud computing. Through this model, companies can store less critical data in the clouds, while highly sensitive data remain continuously within the company’s firewall. In the future, alongside technological evolution, solutions that support a more secure and trusted cloud environment are bound to emerge.

Going forward, participants must simplify cloud pricing models to rev up the attraction quotient for consumers. Cloud computing is billed in a complex manner and consumers have perceived this as a hurdle. Similar to broadband service offerings, the introduction of an “unlimited” usage model will attract the attention of those still unconvinced of the full potential of cloud-based solutions. As cloud-based solutions gain broader acceptance, solution providers must consider leveraging complimentary capabilities to add value to their offerings. Collaborations will serve to create greater awareness of available applications, and pave the way for maximum product visibility.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

- Infrastructure as a Service (IaaS)
- Platform as a Service (PaaS)
- Software as a Service (SaaS)


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