Cloud sever revenue to hit $9.4B in 2015

Cloud sever revenue to hit $9.4B in 2015

Market news |
Worldwide revenue for cloud computing servers is projected to grow to $9.4 billion in 2015, according to market research firm International Data Corp., (IDC).
By eeNews Europe

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IDC (Framingham, Mass.) projected that revenue for private cloud servers—those that arrive pre-integrated and ready for use—will grow to $5.8 billion by 2015. Revenue from public cloud servers—those that are maintained off site entirely—will reach $3.6 billion by 2015, according to the firm’s projections.

"These evolutionary—and revolutionary—changes in IT deployment and business attitudes are having a profound impact on traditional IT environments," said Katie Broderick, IDC senior research analyst for enterprise platforms and datacenter trends and strategies, in a statement.

"Cloud computing can dramatically simplify administrating and managing many companies’ datacenters and position IT as a service organization for the rest of the company," Broderick said. "Off-loading some of the more mundane tasks to the cloud (public or private) and freeing up manpower to focus on adding value to the business is critical to driving cloud adoption. But, up-front costs are real, and choosing the right vendor to manage or deploy an environment is equally important."

According to IDC’s research, public clouds are generally being built on simpler server hardware with a focus on energy efficiency, density, and cost control. The reliability, availability, and serviceability for public clouds tends to be built into the software layer through failover and virtualization, according to the first. The result is that public cloud servers typically have lower average selling prices (ASPs) than average x86 servers, IDC said.

IDC projects taht the number of servers shipped for deployment in public clouds will reach more than 1.2 million in 2015, representing a 21.1 percent compound annual growth rate (CAGR) for the period 2011 through 2015.

Private cloud systems, meanwhile, are being built on higher-end hardware with more memory, I/O bandwidth, and advanced CPU capabilities, according to IDC. Private clouds are also more reliant on the hardware for their reliability, availability, and serviceability capabilities, the firm said, giving them higher ASPs compared to typical x86 servers. IDC expects more than 570,000 servers will be shipped for deployment into private clouds in 2015, representing a five-year CAGR of 22.4 percent.

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