Can Cloud Computing Help Enterprises Weather the Economic Storm? (Market Focus)

Can Cloud Computing Help Enterprises Weather the Economic Storm? (Market Focus) published by Datamonitor in May, 2009. This report consists of 38 pages and the price starts from US $ 3395.

Introduction

Abstract

Introduction

The rapid pace of proliferation of the term "cloud computing" is nothing short of astonishing. However, many doubts remain regarding the exact scope and definition of the term or the long-term impact of the business model it denotes.

Scope of this research

• Defines cloud computing, describes its model of operation and provides a classification of cloud computing services.
• Considers drivers and inhibitors of cloud computing adoption in the context of the current global recession.
• Outlines the emerging competitive landscape for cloud computing services and related technologies.
• Recommends the stance that enterprises, technology vendors and service providers should adopt regarding cloud computing.

Research and analysis highlights

In merely 18 months the neologism "cloud computing" has gone from obscurity to pervasiveness. Although elusive to define, the emerging paradigm is clearly capturing the imagination of the IT market. Datamonitor believes that the level of interest in the alternative models of IT consumption is driven by the ongoing commoditization of IT technology.

Datamonitor defines cloud computing as an IT consumption pattern that relies on abstracted resources delivered as utility services. Such approach to IT generation, delivery and deployment allows for a more efficient way to carry out IT tasks due to the inherent benefits of services over products.

While the current global recession will accelerate take-up of cloud computing, the nature of computing resources and a slew of migration challenges mean that the adoption will not be universal. Nevertheless, it remains clear to Datamonitor that the cloud computing model will play an increasingly important role in the future.

Key reasons to purchase this research

• Gain a clear, detailed and comprehensive understanding of the emerging cloud computing paradigm.
• Identify dominant market trends in order to evaluate opportunities created by the shift to cloud computing.
• Optimise your cloud computing strategy to capitalize on the short, medium and long-term opportunities cloud computing will create.

Table of Contents

OVERVIEW

• Catalyst
• Summary

INTRODUCTION TO CLOUD COMPUTING

• The term cloud computing is quickly becoming ubiquitous
• Cloud computing is a new pattern of IT consumption but it is proving elusive to define
• (Untitled sub-section)
• Cloud computing: an IT consumption pattern based on the delivery of commoditized resources as a service
• IT commoditization has occurred through the history of computing
• Cloud computing may resemble the mainframe era, but it is a fundamentally different phenomenon
• Electricity provides the most powerful analogy with cloud computing
• The cloud computing taxonomy
• Software-Platform-Infrastructure (SPI) model offers the basic cloud computing classification
• Further refinement of the SPI model should not rely on the proliferation of ' as a Service' neologisms
• Detailed taxonomy schemas focus on segmenting the infrastructure layer
• The fabric/instance spectrum captures variations in the granularity of computing services provision
• Do private clouds exist?

BENEFITS OF CLOUD COMPUTING

• The benefits of cloud computing are the benefits of services over products
• Cloud computing allows enterprises to focus on their core business processes
• Cloud computing closes the gap between IT capacity and IT demand
• Variable costs and usage-based models are the principal benefits of cloud computing pricing

INHIBITORS TO CLOUD COMPUTING ADOPTION

• Trust and migration to an unfamiliar model are the primary inhibitors to cloud computing
• The substitution of products with external services renders the issue of trust extremely acute
• Cloud service adoption and management challenges are currently potent inhibitors
• (Untitled sub-section)
• Conclusion: benefits and inhibitors of the cloud computing model

COMPETITIVE LANDSCAPE

• The roll-out of cloud infrastructures is an opportunity for commodity hardware vendors
• Migration into the cloud will boost thin clients, netbooks and handhelds
• Cloud infrastructure services
• Online retailer Amazon.com has emerged as the early leader in infrastructure provision
• GoGrid leads the wave of hosting providers offering instance-based cloud computing infrastructure
• Others could offer cloud infrastructure services, but may prefer to compete in software or platform layers
• Infrastructure management platforms have emerged as the critical part of the cloud infrastructure stack
• Cloud platform competitive landscape is particularly vibrant
• Proprietary development platforms backed by SaaS vendors are proving popular with ISVs and users
• Platforms supporting generic development frameworks may lend more control to developers
• A long tail of standalone platforms relies on intuitive proprietary development and execution environments
• SaaS vendors now feature in virtually every segment of the enterprise application market

DATAMONITOR OPINION

• Those that manage to harness the cloud computing model stand to benefit
• Cloud computing is here to stay, albeit not as the sole model of IT consumption
• The Global Recession will accelerate the adoption of cloud computing
• Unchecked proliferation and inadequate management of cloud computing services can fuel the backlash
• Successful vendors will capitalize on short-term opportunities and prepare for long-term implications

RECOMMENDATIONS

• Action points for enterprise technology vendors
• Action points for enterprise IT decision makers

APPENDIX

• Definitions
• Methodology
• Further reading
• Ask the analyst
• Datamonitor consulting
• Disclaimer

TABLES

• Table: A selection of SaaS vendors by solution area, presented in alphabetical order

FIGURES

• Figure: Only one in three CIOs are comfortable with their department' s maintenance workload
• Figure: Cloud computing appeared in the market in 2007 and has risen quickly to universal prominence
• Figure: Cloud computing overlaps with a range of related terms
• Figure: Cloud computing as an IT consumption model
• Figure: Cloud computing can be contextualized as the ongoing service-based commoditization of IT
• Figure: Software-Platform-Infrastructure (SPI): the basic cloud computing taxonomy model
• Figure: A reference cloud computing taxonomy combining the SPI and Youseff-Butrico-DaSilva models
• Figure: Cloud computing services are floating along the fabric/instance provision spectrum
• Figure: A private cloud is analogous to an intranet; public clouds are approximate the scale of the internet
• Figure: Adopting a service-based IT consumption strategy allows greater focus on strategic issues
• Figure: Gap between IT capacity and demand creates inefficiencies
• Figure: Non-concurrent peaks in demand increase the utilization rate of cloud infrastructures
• Figure: The balance of the principal elements of service provider trust shifts with the mode of provision
• Figure: Outline of the cloud computing competitive landscape segmented by the SPI model
• Figure: Enterprises are likely to blend locally managed resources with public clouds

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