Gartner Puts Numbers To Their Forecast For Cloud Computing

Richard Barrett

According to Gartner’s recently published Gartner Hype Cycle for Cloud Computing, 2012, companies are starting to subscribe to cloud based solutions because of the speed of deployment, lower costs and easier customization,  – but still caution that enterprises are far from abandoning their on-premise solutions  entirely.  Didn’t I write something like this just last month?

They suggest that many buyers are confused by all the hype which slows down the sales cycle and urge the vendors to adopt more straightforward selling that would lead to more pilots, sales and a potentially larger market pointing out that vendors that have already helped customers deliver cloud solutions on time and under budget for customer who have gain quantifiable benefits are starting to overtake those that using ‘cloudwashing’ as part of their selling strategies.

Gartner estimates that:

  • The Cloud business performance management (bpmPaaS) market will grow 25% year over year – and point out that 40% of companies doing BPM are already using BPM in the cloud. They have identified more than 30 bpmPaaS applications and platforms – so quite a range to choose from and more to come in the month or so.
  • Big Data will deliver transformational benefits to enterprises within 2 to 5 years, and boldly suggest that by 2015, enterprises adopting this technology will outperform competitors by 20% in every available financial metric.
  • Over 75% of respondents surveyed saying they plan to pursue Private Cloud Computing  and Gartner note that there are many pilot and production deployments out there today that are giving considerable cost savings through virtualization – so hardware vendors watch out!.
  • Software as a service, SaaS is rapidly gaining adoption, leading Gartner to forecast more than 50% of enterprises will have some form of SaaS-based application strategy by 2015, much of this impetus coming from companies wanting to get around limitations on IT and capital spending.

In conclusion, Gartner say that when cloud-based platforms are aligned with well-defined strategic initiatives and line-of-business objectives, they deliver value for the enterprise, but suggests that rather than isolated SaaS offerings, the larger Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) are the catalysts of long-term market growth as the chart below shows.

Summary: Still the way to go.

Gartner chart, High Growth Expected in Cloud Infrastructure Services

Click here for more free to download charts from Gartner about the cloud market.

Richard Barrett

About Richard Barrett

Richard Barrett is a writer and commentator on finance, technology and business. A sales and marketing professional by training, Richard’s business life has been mainly spent helping entrepreneurs build their companies and realize their value.