Government Cloud Authors: Elizabeth White, Pat Romanski, Dana Gardner, Liz McMillan, Gopala Krishna Behara

Blog Feed Post

Let’s Talk Dollars and Cents in the Cloud

Let’s be honest for a moment, you might love what you do but you’re in business to make money. It’s as simple as that. You love that you provide a valuable service to your local, city and national community, yet you are in business to make money. There is no way around that simple fact. You’re in business to turn a profit and in this today’s economy, turning a profit means being smart with your investments. It means constantly checking operating costs to make sure you’re in the green. To get in the green you have options, one of those options is the Cloud (a.k.a Grid Computing and/or Complex Hosting Solutions).

I am not going to tell you about how Cloud Hosting and understanding what the Cloud is, will monumentally help your business succeed. Truth be told for the majority of people, maybe you included, the technical details about the process simply doesn’t matter. All you care about is the money grid computing is going to save your business and more importantly, let it succeed. So, in the spirit of capitalism and making some good money, let’s take a look at some numbers.

First, a chart:

One, annual spending on Complex Hosting Solutions will go from $17 billion worldwide in 2008 to $87.2 billion worldwide by the end of 2013. Secondly, the percent of in-house spending replaced by the private, public and hybrid Cloud in 2008 was 0.36% – by the end of 2013 that figure will reach 14.49%. Three, considered one and two, if you are a business of any size and are not making the move to  complex hosting solutions, you’re bleeding yourself dry of money.

Money. You are in business to make money – for dollars and cents. Cloud storage solutions will help you make that money to send you and your wife on a lovely vacation. While you think about Tahiti, here are some more facts:

  1. According to a study published by IDC in December 2011, “about 24% of all new business software purchases will be of service-enabled software with SaaS delivery being 13.1% of worldwide software spending. The IDC further predicts that 14.4% of applications spending will be SaaS-based in the same time period.
  2. According to a study published in Analytics Magazine on October, 27, 2011 the global corporate  mobile SaaS market, “will reach 1.2 billion in 2011 and grow to $3.7 billion by 2016, with a five year-compound growth rate (CAGR of 25.8%. The ability to integrate powerful business applications on smartphones, tables and other wireless devices will facilitate and accelerate SaaS adoption in the corporate business environment
  3. According to a study by the 451 Market Monitor, “the cloud computing marketplace will reach $16.7B in revenue by 2013…including the large and well-established software-as-a-service (SaaS) category, grid computing will grow from revenue of $8.7B 2010 to $16.7B in 2013, a compound annual growth rate (CAGR) of 24%.
  4. According to an article published by MedicalDeviceNetwork.com on January 5, 2012, the U.S. cloud computing market, “for medical imagery was at $56.5M in 2010 and is forecast to grow at a Compounded Annual Growth Rate (CAGR) of 27% during 2010-2018.
  5. According to a study conducted by the U.S. Federal Government in 2011, the complex hosting solutions market will enter into a double-digit growth phrase – “at about 16% CAGR over the period 2013-2018, with annual federal Cloud Computing market to hit the $10 billion landmark by 2018.
  6. Forrester “forecasts that the global market for Cloud Computing will grow from $40.7 billion in 2011 to more than $241 billion in 2020. The total size of the public market will grow from $25.5 billion in 2011 to $159.3 billion in 2020.
  7. According to Cisco, “global Cloud IP traffic will increase twelvefold over the next five years, accounting for more than one-third (34%) of total datacenter traffic by 2015.” (Source – Cisco Global Cloud Index: Forecast and Methodology, 2010 – 2015)

The signs are all around us and the numbers do not lie. The finances behind grid computing are rock solid. From Gartner forecasting small and medium size businesses in the insurance industry having a higher rate of Cloud adoption compared to the enterprise class counterparts – 34% vs. 27% – to Gartner further forecasting the global IaaS market to grow by 47.8% through 2015, the Cloud isn’t going anywhere.

Moreover, the minds over at Cisco have forecasted 57% of all company workload will be done via the Cloud. 57%. You might not care about the technical aspects of grid computing. You might not care how your IT company of choosing deploys your private Complex Hosting Solution but you should care about saving money to get ahead. Saving money to get ahead is what the Cloud enables small and medium size companies to do. In a market place dominated by international giants and multinational corporations, the Cloud levels the playing field by giving small to medium sized business the same IT solutions MNC’s utilize for a fraction of the overall cost.

The writing is on the wall. The Cloud is here to stay and now you have a choice: either join the warm embrace of Cloud Computing or get left behind. It’s up to you.

And now, for a better visual summary of what you just read, an infographic.

Read the original blog entry...

More Stories By DedicatedNOW Blog

DedicatedNOW is committed to providing highly reliable services that are unmatched in the industry. All its tools and resources are designed keeping the users in mind.

IoT & Smart Cities Stories
DXWorldEXPO LLC announced today that Big Data Federation to Exhibit at the 22nd International CloudEXPO, colocated with DevOpsSUMMIT and DXWorldEXPO, November 12-13, 2018 in New York City. Big Data Federation, Inc. develops and applies artificial intelligence to predict financial and economic events that matter. The company uncovers patterns and precise drivers of performance and outcomes with the aid of machine-learning algorithms, big data, and fundamental analysis. Their products are deployed...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...
The challenges of aggregating data from consumer-oriented devices, such as wearable technologies and smart thermostats, are fairly well-understood. However, there are a new set of challenges for IoT devices that generate megabytes or gigabytes of data per second. Certainly, the infrastructure will have to change, as those volumes of data will likely overwhelm the available bandwidth for aggregating the data into a central repository. Ochandarena discusses a whole new way to think about your next...
CloudEXPO | DevOpsSUMMIT | DXWorldEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
All in Mobile is a place where we continually maximize their impact by fostering understanding, empathy, insights, creativity and joy. They believe that a truly useful and desirable mobile app doesn't need the brightest idea or the most advanced technology. A great product begins with understanding people. It's easy to think that customers will love your app, but can you justify it? They make sure your final app is something that users truly want and need. The only way to do this is by ...
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Cell networks have the advantage of long-range communications, reaching an estimated 90% of the world. But cell networks such as 2G, 3G and LTE consume lots of power and were designed for connecting people. They are not optimized for low- or battery-powered devices or for IoT applications with infrequently transmitted data. Cell IoT modules that support narrow-band IoT and 4G cell networks will enable cell connectivity, device management, and app enablement for low-power wide-area network IoT. B...
The hierarchical architecture that distributes "compute" within the network specially at the edge can enable new services by harnessing emerging technologies. But Edge-Compute comes at increased cost that needs to be managed and potentially augmented by creative architecture solutions as there will always a catching-up with the capacity demands. Processing power in smartphones has enhanced YoY and there is increasingly spare compute capacity that can be potentially pooled. Uber has successfully ...
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...