by Tobin Smith
From time to time industries go through disruptive paradigm shifts. The rise of automobiles changed transportation and significantly impacted the railroad industry. Aviation changed human and time-sensitive product and material transportation. Mobile phones accelerated the reduction of fixed landline communications. And most recently, the Internet has changed communications (Webex, IM, Skype), search and access to information (Google, Wikipedia), online retail and commerce (Amazon, eBay) and social interaction (Facebook, LinkedIn and Twitter). Another shift is occurring that will forever change how consumers and businesses use networks, services, software and applications – Cloud Computing.
Spending on “cloud computing” ie datacenter based/usage priced IT is about 5% of the $1.5 trillion annual spend on cororate IT. All research and analysts firms agree a CAGR of at LEAST 30-90% a year for the next decade is at hand depending on which segment of the “cloud” we are talking about.
AMI Partners predicts that the worldwide cloud computing market for SMBs will reach $94 billion by 2014. Suppliers are already experiencing rapid growth in cloud computing offerings driven by its ease, speed and economic benefits for the users. It is interesting to note that the worldwide recession has actually placed a spotlight on cloud computing due to the low cost nature of these service offerings.
Clearly there has NOT been this type of “Cambrian explosion” in corporate technology since the dawn of the World Wide Web.
Our mission at CloudInvestor.com is to help investors make enough sense of the transformational opportunities to place their bets on the winners in the immense Darwinian battle of survival that has taken the IT world by storm.
What’s Different About Cloud Computing?
The Cloud is changing the way that applications and infrastructure are distributed, delivered and consumed. Enterprises around the world suddenly have access to applications and functions that promise to transform the way they do business. Application vendors can now reach markets around the globe that previously were too expensive or too dispersed to capture.
A cloud service has four primary characteristics that differentiate it from traditional hosting:
This explosion in cloud computing investment is also driving tremendous growth in the types of applications and services that are available. This broad range of applications and services is now commonly referred to as X-as-a-Service (XaaS).
Today, the most common forms of XaaS offerings include: