Predictions for the Cloud Industry Growth in 2015
The end of the year typically brings about a frenzy of news, reviews and forecasts about the next year, and rightfully so one of the top industry predictions for 2015 relate to the Cloud.
According to IDC, “the global cloud market, including private, public and hybrid clouds, will hit $118 billion in 2015 and crest at $200 billion by 2018. If the market shows that much growth next year, it will mean a 23.2% rise over the $95.8 billion market it reached in 2014”.
Industry Analysts and pundits have speculated about the major growth areas of the Cloud in 2015 and a majority of the predictions relate to Hybrid Cloud and Security. These no doubt are key areas in the Cloud, but are not the only factors that will lead the growth. The Cloud is a complex framework and an industry that is driven by multiple drivers and has multiple complex pieces of framework that make it work. To understand the overall growth of the industry it is important to look at all the factors that affect the Cloud overall.
Here are some of the key areas in Cloud computing that will fuel the growth of the Cloud overall in 2015.
1. Billing Models will Change on the Cloud
SaaS (Software as a Service) model of operation powers the entire Cloud framework. With services delivered On Demand through the Cloud, providers have so far been able to transform their deliver model successfully and move to a more agile and robust way of service and product provisioning. Some providers however have completely transformed the way services are not only delivered, but also billed. One of these disruptors being Adobe, who moved its entire Creative Suite to the Cloud. Cloud deliver mechanisms although are likely to follow the path of the “as a service” models, billing these services is going to take a fundamental turn. As vendors enable a consumption based model for billing, this will translate into 100% Real-time Consumption, Hybrid and Prepaid versions, which will potentially get offered based on the type of platform and service being utilized. 2015 is likely to be a big year for the Consumption model purely because the industry has now started adopting to the model and also a number of key players in the industry are launching new platforms and services that embrace the new mechanism.
2. Mobility will Drive Development on the Cloud
Mobility is a key driver for the Cloud. As a means and an endpoint to utilize Cloud solutions and because of the sheer technological evolution of mobile devices, Mobility will be one of the top focus of the Cloud industry overall. A number of major vendors have invested heavily in Mobile in 2014 and the trend is expected to grow at a much faster rate than in previous years. 2015 will see a larger adoption of mobile platforms, higher usage and more development of the technology that powers mobile devices. According to a leading industry analyst, “Sales of smartphones and tablets will reach $484 billion, accounting for 40% of all IT spending growth (excluding telecom services)” and while mobile app downloads will start to slow in 2015, enterprise mobile app development will double. Mobility will also grow as a result of the growth in advertising programs run by industry leaders such as Google, Microsoft and others.
3. Analytics on the Cloud will (Em)Power Organizations
Business Intelligence is a key driver to the success and agility of every organization. A key component of being able to provide a snapshot of data at any given moment of time and the ability to segment, slice and dice information to make key business decisions is purely a life changing capability. 2015 will see a huge surge in technology for Business Intelligence platforms. This will primarily be driven by the need created by smaller, more agile industries to leverage key insights into their data. Partially driven by the growth in mobility, business intelligence platforms on the Cloud are likely to become more dominant and wide spread than the larger large enterprise BI platforms. This growth will also translate into the growth of platforms that are able to work with Big Data. Industry analytics have predicted that the Big Data industry will be worth approximately $10 Billion in 2020.
The Cloud industry overall is expected to grow steadily over 2015 with some key areas of interest, IoT, Analytics, Mobility all relate closely to the development of the Cloud and while more organizations adopt to the idea of Cloud, changes in the global economies and the state of businesses overall will fuel localized Cloud growth in Asia, Europe and the Americas. 2015 is definitely a year to look forward to for the Cloud!