Selling kit in the traditional way? Days might be numbered

Public cloud spend to hit $127bn by 2018, predicts IDC

Tea-leaf readers at IDC have slurped their latest cuppa and determined from the waste at the bottom that spending on the public cloud will run six times faster than traditional tech over a five-year period.

The industry soothsayer is forecasting customer investment in the fluffy white stuff to reach $56bn this year, and grow 22.8 per cent until the end of 2018, when the money exchanging hands via public clouds is touted to reach $127bn.

“Over the next five years, IDC expects the community of developers to triple and to create a ten fold increase in the number of new cloud-based solutions,” said Frank Gens, senior veep and chief tea-leaf reader analyst.

“Many of these cloud-based solutions will become more strategic than traditional IT ever has been,” the IDC man added.

He said certain vendors - notably Adobe and IBM - are selling services via the cloud first, which is also driving adoption. As the number of applications and use cases “explode”, cloud services will permeate “almost every B2B and consumer services marketplace”.

If IDC is correct, then within three and a bit years, public IT cloud services will account for more than half of worldwide software, server and storage spending growth.

Software-as-a-service is expected to remain the dominant segment, representing 70 per cent of spend on public clouds expenditure this year. Most of the customer demand is at the application level, said IDC.

Coming next in the public cloud stakes is infrastructure-as-a-service, which the market beanie expects to benefit from a 31 per cent uptick in cloud storage over the five-year forecast timeframe.

In fact, platform-as-a-service and cloud storage are expected to be the fastest growing categories, fuelled by developer cloud services and big data respectively.

There is a race to the bottom among the major public cloud players, with AWS, Google and Microsoft using price as the major competitive weapon to win new customers. In the case of AWS, it is suspected that the firm may eventually run into trouble.

Gens at IDC reckons there will “unprecedented competition and consolidation among the leading cloud providers”. ®

Broader topics

Other stories you might like

  • DigitalOcean tries to take sting out of price hike with $4 VM
    Cloud biz says it is reacting to customer mix largely shifting from lone devs to SMEs

    DigitalOcean attempted to lessen the sting of higher prices this week by announcing a cut-rate instance aimed at developers and hobbyists.

    The $4-a-month droplet — what the infrastructure-as-a-service outfit calls its virtual machines — pairs a single virtual CPU with 512 MB of memory, 10 GB of SSD storage, and 500 GB a month in network bandwidth.

    The launch comes as DigitalOcean plans a sweeping price hike across much of its product portfolio, effective July 1. On the low-end, most instances will see pricing increase between $1 and $16 a month, but on the high-end, some products will see increases of as much as $120 in the case of DigitalOceans’ top-tier storage-optimized virtual machines.

    Continue reading
  • GPL legal battle: Vizio told by judge it will have to answer breach-of-contract claims
    Fine-print crucially deemed contractual agreement as well as copyright license in smartTV source-code case

    The Software Freedom Conservancy (SFC) has won a significant legal victory in its ongoing effort to force Vizio to publish the source code of its SmartCast TV software, which is said to contain GPLv2 and LGPLv2.1 copyleft-licensed components.

    SFC sued Vizio, claiming it was in breach of contract by failing to obey the terms of the GPLv2 and LGPLv2.1 licenses that require source code to be made public when certain conditions are met, and sought declaratory relief on behalf of Vizio TV owners. SFC wanted its breach-of-contract arguments to be heard by the Orange County Superior Court in California, though Vizio kicked the matter up to the district court level in central California where it hoped to avoid the contract issue and defend its corner using just federal copyright law.

    On Friday, Federal District Judge Josephine Staton sided with SFC and granted its motion to send its lawsuit back to superior court. To do so, Judge Staton had to decide whether or not the federal Copyright Act preempted the SFC's breach-of-contract allegations; in the end, she decided it didn't.

    Continue reading
  • US brings first-of-its-kind criminal charges of Bitcoin-based sanctions-busting
    Citizen allegedly moved $10m-plus in BTC into banned nation

    US prosecutors have accused an American citizen of illegally funneling more than $10 million in Bitcoin into an economically sanctioned country.

    It's said the resulting criminal charges of sanctions busting through the use of cryptocurrency are the first of their kind to be brought in the US.

    Under the United States' International Emergency Economic Powers Act (IEEA), it is illegal for a citizen or institution within the US to transfer funds, directly or indirectly, to a sanctioned country, such as Iran, Cuba, North Korea, or Russia. If there is evidence the IEEA was willfully violated, a criminal case should follow. If an individual or financial exchange was unwittingly involved in evading sanctions, they may be subject to civil action. 

    Continue reading

Biting the hand that feeds IT © 1998–2022