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Report: cloud computing to double server-hardware revenue over five years

 
Server hardware market for public and private clouds will grow to $6.4bn in 2014
(7/30/2010)
As cloud computing settles in, getting more acceptance as one of the ways to deliver IT services, trends begin to emerge that shed light on dynamics within and among the various cloud markets. Among some of the biggest beneficiaries of cloud computing are server vendors, whose revenues are projected to grow substantially along with wider adoption of cloud computing.

According to the latest projections by the IT market research firm IDC, server hardware revenues driven by public cloud computing will grow from $582m in 2009 to $718m in 2014. Within the same timeframe, server revenues driven by the private-cloud market will grow from $2.6bn to $5.7bn.

While IDC’s new projections for public-cloud server sales stayed consistent with growth figures it reported in May, revenues driven by private-cloud deployments have been revised down substantially. In May, IDC said server revenues from private-cloud deployments would grow from $7.3bn in 2009 to $11.8bn in 2014.

“Many IT decision makers are seriously considering cloud computing as a way to dramatically simply their sprawling virtual and physical infrastructure,” IDC’s analyst Katherine Broderick said in a statement. “However, there is still some lingering apprehension over issues like integration, availability, security, and costs. These concerns, and how they are addressed by IT vendors, will continue to guide the adoption of cloud computing over the next several years.”

In line with server-revenue figures, IDC has observed private clouds to be much more broadly deployed than public-cloud services. Public cloud services have also been much less enterprise-focused than private clouds. Almost half of respondents to a recent IDC survey said they were considering private-cloud deployments.

Related news: Facilities managers skeptical about cloud’s ability to solve their problems
Related news: Companies keep public cloud revenue figures to themselves
Related news: IBM’s Telford: expression ‘cloud computing’ on its way to obsolescence

Keywords: cloud computing, IDC, server revenue, server sales, private cloud, public cloud

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