Cloud

Report: Cloud's long shadow darkens prospects for on-prem systems

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Cloud adoption in government may still be in the "slow and steady" phase, but the private sector is another matter.  Revenues from cloud services will reach $236 billion by 2020, predicts a new study by Forrester Research, pushing aside, or replacing outright, existing servers and storage systems at enterprises.

That total, Forrester said, exceeds its 2014 forecast by 23 percent.

According to the study, public cloud is set to become the dominant technology model by 2020. The growth, it said, won't necessarily come from a huge influx of new customers, but from portfolio expansion and new application scenarios.

Cloud technology, according to Forrester, is currently in a "hypergrowth phase" that will continue and accelerate for the next four years for cloud platforms, cloud applications, and cloud business services.

Increasingly strong market for software-as-as-a-service (SaaS) and a big dramatic increase in infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) will continue, said the study. By 2020, Forrester predicted SaaS will make up more than two-thirds of spending on customer relationship management, human resource management, eCommerce, and ePurchasing.

According to Forrester, the impact of cloud service providers like Amazon Web Services, Microsoft Azure, IBM, Google and Salesforce have already had on sales of on-premises servers and storage devices has been astonishing. Their research suggests that by 2017, North American and European companies will run 18 percent of their custom-built application software on public cloud platforms.

About the Author

Mark Rockwell is a senior staff writer at FCW, whose beat focuses on acquisition, the Department of Homeland Security and the Department of Energy.

Before joining FCW, Rockwell was Washington correspondent for Government Security News, where he covered all aspects of homeland security from IT to detection dogs and border security. Over the last 25 years in Washington as a reporter, editor and correspondent, he has covered an increasingly wide array of high-tech issues for publications like Communications Week, Internet Week, Fiber Optics News, tele.com magazine and Wireless Week.

Rockwell received a Jesse H. Neal Award for his work covering telecommunications issues, and is a graduate of James Madison University.

Click here for previous articles by Rockwell. Contact him at mrockwell@fcw.com or follow him on Twitter at @MRockwell4.


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