Cloud Computing to Drive $6.4 Billion in Server Hardware Spending by 2014, According to IDC
30 Jul 2010
FRAMINGHAM, Mass., July 30, 2010 – Cloud computing presents a viable option for IT organizations seeking to reduce the complexity within their IT environments, either by means of converged systems that arrive pre-integrated and ready to use (for private clouds) or systems that are offsite entirely (public cloud). In both scenarios, the pursuit of cloud computing options will drive new spending on server hardware. International Data Corporation (IDC) forecasts that server hardware revenue for public cloud computing will grow from $582 million in 2009 to $718 million in 2014. Server revenue for the larger private cloud market will grow from $2.6 billion to $5.7 billion in the same time period.
"Many IT decision makers are seriously considering cloud computing as a way to dramatically simply their sprawling virtual and physical infrastructure," said Katherine Broderick, research analyst, Enterprise Platforms and Datacenter Trends. "However, there is still some lingering apprehension over issues like integration, availability, security, and costs. These concerns, and how they are addressed by IT vendors, will continue to guide the adoption of cloud computing over the next several years."
IDC defines cloud services to be business and consumer products, services, and solutions delivered and consumed in real-time over the Internet. Public cloud computing is characterized as being open to a largely unrestricted universe of potential users; designed for a market, rather than for a single enterprise. In contrast, private cloud computing is designed for, and access restricted to, a single enterprise (or extended enterprise); an internal shared resource, not a commercial offering; IT organization as "vendor" of a shared/standard service to its users.
Additional findings from IDC's research include the following:
- Public cloud computing has lower ASVs than an average x86-based server
- Public cloud seems less likely to be broadly adopted than private
- Public clouds will be less enterprise focused than private clouds
- According to recent IDC survey results, almost half of respondents, 44%, are considering private clouds
The IDC study, Worldwide Enterprise Server Cloud Computing 2010-2014 Forecast (IDC #223118) presents market size and forecast information for server hardware infrastructure supporting public and private clouds from 2009 through 2014. This is IDC's first cloud forecast from the server hardware perspective and will be built upon in the future. This document presents the opportunity for servers in the cloud by customer revenue, units, CPU type, form factor, and workload.
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