cloud computing predictions The Future of Cloud AdoptionPublic cloud computing is one of the biggest factors that speed up the pace of changes that occur in enterprise software these days. Newcomers in the market are constantly launching innovations that can disrupt and attack the most price-sensitive sectors in the market. Most of these newcomers, like Salesforce.com, are scooping up customers at the low-end of the market and are slowly but surely making their way up-market, changing the customer experience, structure, and economics behind the industry along the way.

Definition of a Public Cloud

The National Institute of Standards and Technology (NIST) have defined public cloud as “the cloud infrastructure that is provisioned for use by the general public,” adding that said infrastructure may be managed, owned, and operated by an academic, business, or government organization (and in some cases a combination of two or more).

NIST defines three separate types of public cloud, namely SaaS (Software-as-a-Service), PaaS (Platform-as-a-Service), and IaaS (Infrastructure-as-a-Service). Gartner has a similar definition of Public Cloud Computing, but adds two more types of services: BPaaS (Business Process-as-a-Service) and Cloud Management & Security.

Public Cloud Adoption in the Enterprise

The adoption of public cloud computing in manufacturing depends on the company’s CIO, since there are two kinds of CIOs in the industry right now. The first one is the CIO who focuses only on risk aversion and compliance to industry standards, and the second one is the kind of CIO who believes that it is his job to scout out and implement new technologies that will address his company’s strategic needs. The latter is more welcoming of public and hybrid clouds, and will probably adopt them in order to better integrate with distributors, dealers, and suppliers.

BPaaS Statistics

  • According to Gartner, BPaaS will generate a global compound annual growth rate of 15% by 2016
  • In Gartner’s prediction, the three subsegments of BPaaS that will see the largest growth rates in 2016 is Cloud Payments, Industry Operations, and Cloud Advertising.
  • When it comes to revenue generation, Cloud Advertising is expected to generate around $95B by 2016, which is a 17.1% growth from the $43.1B revenue last 2011.
  • Cloud Payments, on the other hand, are expected to grow by 17.8% in 2016.

SaaS Statistics

  • Software-as-a-Service based applications are expected to see a growth of 17.4% globally by 2016, based on data Gartner has gathered while monitoring 10 different categories of SaaS applications.
  • The 3 fastest growing SaaS segments are Office Suites, which has a 40.7% growth, Digital Content Creation, with 32.2%, and Business Intelligence applications with 27.1%.
  • Out of all the SaaS based categories, CRM will see the largest global revenue growth in 2016, with a predicted 15.1% CAGR worldwide.

IaaS Statistics

  • IaaS is predicted to be the public cloud segment that will see the fastest growth, with Gartner’s projections putting IaaS at 41.7% CAGR by 2016.
  • The IaaS’ CAGR from 2001 to 2016 includes Compute (43.2%), Storage (36.6%), and Print (16%)
  • The Compute subsegment will also see a large revenue growth in 2016, with an estimated 43.2% CAGR.

Cloud Management and Security Services

  • Cloud Management and Security Services, which consists of IT Operations Management, Storage Management, and Security, is expected to generate a 27.2% CAGR in 2016.
  • IT Operations Management, Storage Management, and Security will each see relatively high CAGRS by 2016, estimated at 38.2%, 30.6%, and 23.7%, respectively.

At the end of the day, Gartner’s forecast shows that BPaaS and its subsegments are gravitating towards greater support for e-commerce management and enterprise-wide transactions. It is easy to see that Gartner is seeing a potentially strong interest in BPaaS with a third of the entire 2012 public forecast favoring the BPaaS segment.

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