Cloud Communications

Cloud Communications Feature

June 30, 2011

Global Cloud Server Revenue to Touch $9.4 Billion by 2015: IDC Report

By Rajani Baburajan, TMCnet Contributor

Worldwide revenue for servers deployed to public clouds will reach $3.6 billion in 2015 while private cloud server revenue will reach $5.8 billion, according to IDC (News - Alert).

The growth in cloud servers will be fueled by IT managers’ eagerness to simplify their current IT infrastructure and launch new initiatives to improve overall business value of the company. IT leaders are leveraging server cloud computing as a viable option for decreasing complexity by adopting converged systems.

“These evolutionary, and revolutionary, changes in IT deployment and business attitudes are having a profound impact on traditional IT environments,” said Katie Broderick, senior research analyst, Enterprise Platforms and Datacenter Trends and Strategies, IDC, in a statement.

According to Broderick, cloud computing can dramatically simplify the administration and management of datacenters and position IT as a service organization for the rest of the company.

“Off-loading some of the more mundane tasks to the cloud and freeing up manpower to focus on adding value to the business is critical to driving cloud adoption,” Broderick added.

According to IDC’s report, “Worldwide Enterprise Server Cloud Computing 2011-2015 Forecast,” public clouds are generally being built on simpler server hardware with a focus on energy efficiency, density, and cost control. The reliability, availability, and serviceability (RAS) for public clouds tend to be built into the software layer.

Public cloud computing is a unit story with lower average selling values (ASVs) than an average x86-based server. The number of servers shipped for deployment in public clouds will cross more than 1.2 million in 2015, representing a 2011-2015 compound annual growth rate (CAGR) of 21.1 percent, IDC said.

Recently, analyst firm 451 Market Monitor predicted that the cloud computing marketplace will reach $16.7 billion in revenue by 2013. The large software-as-a-service (SaaS (News - Alert)) category, cloud computing will grow from revenue of $8.7 billion in 2010 to $16.7 billion in 2013, registering a compound annual growth rate (CAGR) of 24 percent.

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Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.

Edited by Carrie Schmelkin
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