Technology Business Research Inc.’s (TBR) Private Cloud Customer Research report estimates the $41 billion private cloud market in 2014 will grow at a 14% CAGR to $69 billion vendor opportunity by 2018. TBR surveyed 331 private cloud end users across the United States, the United Kingdom, Germany, France, India and China to understand customer adoption drivers and barriers and current and expected buying behaviors and budgets over the next 12 months. The report details the competitive vendor landscape; helps clients understand how enterprises are shortlisting, selecting and engaging with private cloud vendors; highlights future budgeting and purchase scenarios; and enables cloud providers to align their offerings to market demand.
TBR Cloud Practice Manager and Principal Analyst Allan Krans believes market opportunity will continue to grow as users and solutions develop and mature. Krans said, "As private cloud matures, growth is entering a different phase that is driven more by the flexibility and ease of management than by just security or cost savings. 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."
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. We expect 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.
Vendors are struggling to adapt to the new cloud paradigm, as pointed out by Cassandra Mooshian, a TBR cloud analyst, who said, "Though they top the leaderboards, IBM, Microsoft and HP — vendors with broad cloud portfolios — have lower satisfaction scores than those with more focused portfolios like Cisco. Trying to be all things to all people deters customers that want those tailored and specialized solutions; think of Walmart versus a grocery store."
One thing that has not changed for cloud is that security remains top of mind for private cloud adopters. Mooshian 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 helps vendors build strategic go-to-market plans by offering 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, or to purchase the report, please contact Alison Crawford at 603.758.1838 or firstname.lastname@example.org
Technology Business Research, Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, professional services, telecom and enterprise network vendors, and operators. Serving a global clientele, TBR provides timely and accurate market research and business intelligence in a format that is uniquely tailored to clients’ needs. TBR analysts are available to further address client-specific issues or information needs on an inquiry or proprietary consulting basis.
TBR has been empowering corporate decision makers since 1996. For more information please visit www.tbri.com.