The $41 billion private cloud market in 2014 will grow at a 14% CAGR to $69 billion vendor opportunity by 2018, according to Technology Business Research Inc.’s (TBR) ‘Private Cloud Customer Research’ report. TBR expects the preference for third-party-delivered, or managed, private cloud will increase over the next two years.
The split between adoption of self-built and third-party-delivered private cloud has held steady at 30% and 70%, respectively, in 2013 and 2014. TBR expects the preference for third-party-delivered, or managed, private cloud will increase over the next two years as hybrid integration, increased complexity of clouds and security concerns challenge enterprise IT skills and capabilities, resulting in customers using a systems integrator or private cloud vendor to save time and reduce costs.
TBR surveyed 331 private cloud end-users across the US, the UK, Germany, France, India and China to understand customer adoption drivers, barriers, buying behaviors and planned budgets.
“As private cloud matures, growth is entering a different phase that is driven more by the flexibility and ease of management than by just cost savings,” said Allan Krans, Cloud Practice Manager and Principal Analyst, TBR. “The skills gap in implementing, migrating and managing private cloud is driving customers to seek vendors that deliver clear and end-to-end migration road maps.”
One thing that has not changed for cloud is that security remains top of mind for private cloud adopters. Cassandra Mooshian, a TBR cloud analyst, insists that vendors with continually advancing security offerings and expertise will find ongoing success in the private cloud space, as 59% of respondents pegged security as a top concern and/or pain point around adopting cloud, and 19% indicated they will hire a third party to help mitigate their security concerns.
TBR’s ‘Private Cloud Customer Research’ report would offer a critical view of the opportunities in private cloud, both self-built and third-party-delivered, examining the landscape through a business-centric lens and highlighting customer buying behavior. The report also identifies leaders and laggards and opportunities for buyers and providers in the private cloud market.
For more information about the Private Cloud Customer Research report, visit: http://www.tbri.com.