By 2015, 30% Of CSPs Will Be Out Of Business

After five years of cloud hype, real examples of its business benefits are starting to present themselves. Cloud services and technologies are no longer simply used to replace ageing or costly on-premises infrastructure and the scene will continue to evolve in the next few years.

However, in terms of the number of vendors in the market, IDC is of the view that about 30 percent of suppliers currently in the cloud market will be out of business by 2015 as it is a relatively new market with many players entering and leaving the playing field. Therefore, it is imperative for CIOs to ensure due diligence when selecting a cloud service provider.

Chris Morris, Associate Vice President for Asia/Pacific Cloud Services and Computing, said, “Today, cloud services adoption is being driven as much by business managers as it is by the CIOs. To successfully adopt cloud services, involvement with the entire cloud ecosystem is necessary. On top of core technology management skills, enterprise cloud sourcing will require extended sourcing management skills, scarce service management skills and provider management skills, all of which are not often found in the average IT organisation.”

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“If we compare the cloud services market in 2012 with that of 2011, it’s clear that the last 12 months have seen an important change in the way which cloud services are being adopted. In 2011, ‘The Cloud’ was seen as a very useful way to cost-effectively replace aging or augment existing IT infrastructure. But in 2012, ‘The Cloud’ has taken on an additional function as a marketplace for the sourcing of enterprise IT and business services by both IT and LOB managers.”

A year ago, IDC predicted that by 2015, cloud-based services will be available to meet every business requirement. For SME, that scenario is the case now. To maximise business agility, CIOs are starting to use these services, driven by the LOB managers. “The Cloud” is no longer a marketing label as the evolution of cloud services will mean that it permeates the sourcing strategies of the CIO and business unit manager alike.