GoCloud’s Weekly Hosted Desktop News Roundup: #8

Gartner predicts cloud market to exceed $109bn in 2012, Amazon’s Cloud Player launches in UK, OpenStack poised for cloud leadership, EU to urge investment into cloud

Technology analysts at Gartner have predicted that the worldwide cloud market is expected to exceed $109bn in 2012, with the highest growth rate being seen in emerging economies such as India and China. This represents growth of 19.6% this year and it’s thought that the majority of the market will be taken up by business process services (or BpaaS), accounting for 77% of the overall market.

"The key to taking advantage of this growth will be understanding the nuances of the opportunity within service segments and geographic regions, and then prioritizing investments in line with the opportunities," Gartner research director Ed Anderson said.

He also expressed the opinion that cloud services are “clearly a high-growth sector” in the technology sector.

It’s thought that SaaS models, such as GoCloud’s virtual hosted desktops, will grow to $14.4bn by the end of this year and IaaS will catch up by around 2016. Cloud management and security services are also forecasted to grow to around $3.3bn.

Whilst the majority of the growth will be seen in emerging economies, Western Europe is expected to suffer the slowest growth due to the ongoing Eurozone crisis, with the area accounting for just 17% of overall growth between 2010 and 2016.

"The total public cloud services market size in 2011 was $91.4 billion, and it will grow to $206.6 billion in 2016,"Anderson added.

"As the market grows, IaaS will become a larger part of the overall market, while the market share of cloud management and security services will grow as well."

Amazon cloud player launches in UK

Following the launch of Amazon Cloud Player in the US 18 months ago, the service has finally reached this side of the water and is now available in the UK, France and Germany. This means that Amazon’s European customers will now be able to listen to music stored in company’s cloud music service.

The service allows users to store up to 250 songs from their existing music collection, alongside any purchases they make in the Amazon Store. However, there is a fee should anyone wish to store more of their music and customers will have to upgrade to premium services.

The Cloud Player app has been updated in the Store to incorporate support for European customers. This gels nicely with the recent UK launch of the Kindle Fire, which it’s thought will present something of a challenge to the iPad, Nexus and Surface in the tablet market.

However, according to some reports, the service remains buggy despite its official launch and is not yet showing up purchases that customers have made previously in their account.

OpenStack poised for cloud leadership

OpenStack is poised for cloud leadership, with the Foundation “taking shape as a potentially potent force in cloud computing,” according to Information Week.

Not only has the organisation elected its governing body, but it also has around $10m in its coffers in order to help OpenStack “pursue its goals". This means that the organisation is showing its intention to present serious competition to VMware, a market leader in cloud services and one company who have applied for membership of OpenStack.

The OpenStack Foundation has not only accepted VMware membership, but made it a ‘Gold Member’, which means that VMware have committed to supporting contributions from developers.

"There are a lot of members who compete with each other, yet contribute to the OpenStack code base," said Lew Tucker, CTO of cloud computing at Cisco and vice chairman of the board of directors of the foundation, in an interview with InformationWeek.

OpenStack’s Alan Clark went on to say that VMware’s inclusion was “a very positive move” and it’s thought that collaboration will enhance interoperability between “on-premises virtualized environments and public cloud services”.

EU to urge cloud investment

The EU is set to urge member state governments to invest more heavily in cloud computing over the next ten years, in order to help the struggling economy and promote growth. In a draft version of the European Commission’s cloud computing strategy it sets out how an investment of €45bn by 2020 could boost the economy by €900bn and provide 3.8m jobs in Europe.

It would seem given that the growth rate as mentioned above is just 17% at the moment, this investment could have a significant effect on the Eurozone crisis and help to stabilise the economy and provide a model for growth.

The draft is due to be published in full next week and it’s thought that it will call for greater cooperation between governments in order to create a “trusted cloud environment in Europe”.

Cloud adoption has been slow to take off in Europe as many companies continue to express concerns surrounding security and compliance issues. However, this is something that is being allayed somewhat and many businesses, especially SMBs, are beginning to realise the advantages of the technology.