Storage as a Service Presents Immediate Cloud Opportunity

U.S. public IT cloud services revenue will grow at a compound annual growth rate (CAGR) of 18.5% --from $18.5 billion in 2011 to $43.2 billion in 2016, according to a new report from IDC. LINK: Shared among "unrelated enterprises and consumers" and "open to a largely unrestricted universe of potential users," IDC, in its "U.S. Public IT Cloud Service by Industry Sector" report, segments public cloud IT services into five functional categories and six vertical sectors.

Discrete manufacturing, professional services, and process manufacturing are the three largest verticals in the public IT cloud services market, accounting for more than 50% of spending in 2011, IDC found. "This is not surprising as these industries are typically less risk averse and compliance focused," commented Eileen Smith, program manager in IDC's Global Technology and Industry Research Organization.

The fastest growing verticals for public IT cloud spending were communications and media, education, and construction. IDC reports that the media portion of the communications and media vertical will require 'storage on demand' thanks to "content-heavy customer offerings."

Also among the findings in IDC's new report are:

  • Services and distribution, the largest sector, accounted for 30.3% of total revenue in 2011. Professional services alone accounted for nearly 40% of the entire category in 2011.
  • Manufacturing and resources, the second-largest vertical sector, accounted for 24.0% of total public IT cloud services in 2011. Discrete manufacturing alone accounted for 46.7% of the entire category in 2011.
  • Infrastructure, the fastest-growing sector with a 19.6% five-year CAGR, accounted for 12.3% of spending in 2011 and will account for 12.9% of spending by 2016.

 In their report, IDC analysts divide the public IT cloud services market into five functional segments: applications as a service; software as a service (SaaS); platform as a service (PaaS); server as a service; and basic storage as a service.

Storage as a service may present one of the more immediate cloud opportunities for CHR clients. Both consumer and business segments have significant digital storage needs, providing a cross segment entry point for cloud services. Contact us to determine your specific market opportunity.

Written by Kevin Kutcher at 09:00
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