Datacenters often found it difficult in having multiple systems to manage the offerings to its customers. Dependency over a decentralized chargeback or multiple silos of billing deployments will also make datacenters fail in terms of having a centralized view of its customers, offerings and revenue. This also constraints in offering cross selling services and bundled offers in terms of SaaS with IaaS services etc.
Cloud computing is a model where the services/solutions are delivered On demand and in a pay – per – use business model. Today Cloud computing technology has gained lot of reputation and attracting many CXO’s, as it is helping them with low cost IT outsourcing
Service providers in the cloud arena target the customers across globe and also to increase revenue and no. of customers, they reach different tiers. In such a business model, customers come in “All shapes and sizes”. Every customer has his specific requirement, affordability.
Every service provider has a real challenge in addressing the requirements of the customers but are they addressing the revenue leakages? Organizations move towards Cloud-based services which dramatically reduce their software and other computing costs.
Businesses looking for a colocation provider in the United States stand to have plenty of options. A recent study from the Synergy Research Group found that the U.S. retail colocation sector experienced considerable revenue expansion during the third quarter of 2013, with profits reaching $1.6 billion.
John Dinsdale, a chief analyst and research director at Synergy Research Group, said the U.S. data center colocation market is among the most mature in the world.
"Looking ahead, the adoption of cloud infrastructure services will act as a damper on some aspects of the colocation market, while stimulating others," said Dinsdale. "We forecast that U.S. colocation revenues will grow by a CAGR of 7 percent over the next five years."
Many experts agree that cloud computing could play a key role in stimulating the colocation sector. Moving to the cloud can prove a major challenge for organizations, and colocation offers a stable and cost-efficient bridge to cloud success.
According to the new report by Allied Market Research the global cloud services market is expected to grow at a CAGR of 17.6% from 2014 to 2020, reaching a market size of $555 billion in 2020. In 2014, the overall cloud services market revenue will reach $209.9 billion, led by public cloud services. The community cloud services segment is gaining momentum and is expected to garner revenue of $1 billion this year, thanks to its adoption in healthcare segment.
Strong growth is anticipated within the varied segments of cloud services market such as infrastructure as a service (IaaS), software as a service (SaaS), platform as a service (PaaS), business process as a service (BPaaS), cloud advertisement services, and cloud management & security services. Cloud advertising services will be the largest segment followed BPaaS with about 47% and 28% market share respectively in 2013. The cloud management & security services will be the fastest growing segment at a CAGR of 28.4% during the forecast period.
On the basis of cloud type the market is categorized as public cloud, private cloud, hybrid cloud and community cloud. Public cloud hold prominent share of the market through 2020 and is expected grow at a CAGR of 16.4% during the forecast period. The reduction of the total cost of ownership on deployment of cloud services acts as the major driver for the adoption of public clouds. The market attracts numerous new entrants due to liberal government regulations. Private cloud will have fastest growth during the analysis period whereas hybrid and community cloud services will gain gradual momentum with steady adoption within specialized end use segments.
Varied market dynamics has been observed within the geographic market segments for cloud services. North America region being the early adopter of these services holds the highest market share throughout the analysis period. The fastest growing market is the Asia Pacific which is growing with a CAGR of 23.5% during the forecast period while representing a smaller market. Economic benefits from cloud services acts as the key driving factors in developing countries of Asia Pacific.