Cloud CIO Strategy - Industry updates
According to new statistics from Gartner the global IT spending forecast for 2012 is US$ 3.6 trillion, up from US$ 3.5 trillion last year. This represents an approximately ~2.5% year-over-year increase.
Spending on Public Cloud Services is expected to increase by 20% from $91 billion in 2011 to $109 billion in 2012. Gartner anticipates that this number could increase by 90% in 2016.
At $1.6 trillion, telecommunications services are expected to be the biggest chunk of IT spending this year. Although services costs are dropping, demand from developing economies and an increase in connected devices such as tables, gaming devices and mobile applications are driving this increased spend.
Businesses and brands that keep it real are the ones that are going to be able to sustain strong customer relationships. But what does it take to get there? A look at some of the top social ad trends of 2012 shows that much of what is going on in the ad space is interlinked, and affect a business ability to market in new ways that are fast becoming critical to survival.
For example, brands that are not integrating a strategy to address the mobile market are going to find themselves behind the curve, and needs here are getting incredibly diverse as well - ranging from apps to accessibility, content, connectivity and consistency across devices.
Video is another example - it's not only getting more social but in turn - data from social performance influences content and ad buys across mediums. Facebook’s Edgerank algorithm is a great example of how they're all coming together. News feeds function dynamically based on affinity, weight and time decay associated with the user's social network activities.
Such trends will quickly force organizations to get a solid grip on their own abilities to understand and harness such feedback loops using Big Data. Indeed, the creative use of Big Data will drive "Socially Aware" business innovation, and influence technology strategy and implementation within businesses.
As businesses line up competencies, tools and resources, we believe that much of the existing in-house architecture and applications will fall significantly short of being able to support the kind of performance required.
Companies will come to view the scalability, adaptability and other vertical integration advantages that Cloud architectures offer as the "de-facto" approach, with not much wiggle room given the economics of change and operation.
We also believe that as business n
eeds evolve towards increased globalization, and businesses themselves take a commodity approach to technology implementation, there will be an increase in localized architectures and solutions that are unique to each other, but convergent as a whole.
This will happen not just at the infrastructure level, but also with business applications and operating models.
The portion of the Healthcare industry using the Cloud will jump from 4% in 2011 to over 20% a year, according to a July 2 report by MarketsandMarkets.
One portion of this market consist of Clinical applications (EHRs, physician order entry and software for imaging and pharmacy use), while the other portion is nonclinical applications such as revenue cycle management, patient billing and claims management.
According to the report, no cloud provider holds more than a 5% share in this market. Such vendors include Agfa Healthcare, CareCloud, Dell, GE Healthcare and Merge Healthcare.
For more info and also related references to material by KLAS research and CDW, check out the entire article on E-week,
Outside Wimbledon fortnight the website wimbledon.com gets fewer than 500,000 page views on average per day. During last year's championships, daily page views peaked at 50 million. The BBC reports on how the All England Tennis Club copes with the load.
Funded by CSC and carried out by TNS, a survey of more than 3,500 cloud computing users in eight countries around the world found that although requirements for business agility and cost savings factor in, they alone are not the most important drivers for cloud adoption.
A third of respondents cited their need to better connect employees through a multitude of computing devices as the number one reason they adopt cloud. 17% cited accelerating the speed of business, while 10% mentioned cost savings as the driver.
82% of respondents said they saved money on their most recent cloud project, but these savings have not always been significant. 93% say the cloud improved data centre efficiency / utilization or another measure and 80% saw improvements within 6 months.
Click on the Infographic to the right to see the actual survey results.
"Joyn" is the new consumer facing brand for the GSM Association's RCS-e (Enhanced Rich Communications Suite), to help end-users recognize the new services on offer as operators and handset vendors take new offerings into the market. Think of it as a common interface for some of the most used mobile Cloud services.
Mobile network operators all over the world are already working together to establish interoperability. Deutsche Telecom, Orange, Telecom Italia, Telefonica, and Vodafone have all endorsed Joyn and other operators such as Bharti, SK Telecom, Orascom, Telenor and Wataniya are expected to "Joyn" in soon.
So what's in it for everyone? For consumers, Joyn will deliver an experience beyond voice, SMS and MMS by providing them with instant messaging, chat, live video sharing and file transfer across any device, on any network, with anyone in their mobile address book. For operators, it's a compelling business proposition, offering new ways to use existing assets and capabilities to deliver innovative communications services and harness new revenue opportunities.
But as we all know, the ball eventually lands in the customer's court. Will Joyn make it as a suitable alternative to some of the Over-the-top (OTT) alternatives out there - or will the Facebooks and Googles of the world use their critical mass to dominate with similar solutions?
It's going to take more than just a brand name for even the best Operators to make this work, but Joyn's common, simple interface could be a good thing in a world that's fast going wireless. Let's wait and see...
Any good IaaS cloud designer knows that when designing scalable clouds - dense form factors and highly elastic storage linked by high performance connectivity is key. In a few articles to come, we're going to be looking at how IaaS and PaaS clouds are designed and implemented.
Let's start by looking at Cheap storage - a fundamental problem almost every service provider needs to address.
Backblaze provides unlimited storage to customers for less than $5 per month. How did they figure out how to store hundreds of petabytes of customer data in a reliable, scalable way—and at the same time keep costs low?
After looking at several overpriced commercial solutions, Backblaze actually decided to build their own custom Storage Pods to support their Cloud Service. This amazing post includes the complete plans and bill of materials for building these storage pods and is a must read for service providers and architects alike.
Northbridge Venture Partners - 2012 Future of Cloud Computing Survey reveals new "Formations" and shifting trends
In a new survey, Northbridge Venture Partners paints a bright picture for the Cloud industry with a full 50 percent of respondents (up from 13% last year) reporting confidence in the Cloud for mission-critical applications.
Michael Skok, a partner at NVP also suggests that besides deployment types (public, private, hybrid) and deployment layers (IaaS, PaaS, SaaS), a third dimension "Formations" is emerging when it comes to classifying the Cloud landscape. The five primary formations that have surfaced are Social / Collaboration Cloud, Mobile / Location Cloud, Media & Entertainment Cloud, E-commerce & Payments cloud and the Big Data / Analytics Cloud.
Google's Cloud Compute Engine now lets users run Linux virtual machines. Supported by RightScale, Puppet Labs, OpsCode, Numerate, Cliqr and MapR out of the gate, it looks like the push to get that Enterprise business is picking up steam. Pricing starts from less than ¢15 an hour and the options are set to increase as Google builds out it's cloud stack beyond the current limited preview.
Yet another great building block and IaaS alternative for all those keen Hybrid Cloud Architects out there. But with Amazon, Microsoft and Google now firmly in this space, it looks like Rackspace and some of the other competition are going to have to differentiate on a lot more than price and scalability to stay in the game.
Can we expect some of the smaller, more exposed players to morph into leaner, meaner focused relationships with operators, verticals and the like? That could make sense - we live in exciting times - so let's wait and see...
Market research firm Analysys Mason now predicts that machine-to-machine (M2M) device connections worldwide will grow by a factor of 20 in the next ten years. Increasing from 100.4 million in 2011 to 2.1 billion in 2021, the industry is set to grow at a CAGR of up to 50 percent in some sectors.
Worldwide connections attributed to developed markets will decline from 69 percent in 2011 to 59 percent in 2021. Similarly, developed markets’ share of worldwide revenue will also decline from its current level of 76 percent to 64 percent in 2021.The penetration of M2M connections as a percentage of overall population is predicted to grow from 5% to 86% by 2021.
Quite predictably, the utility sector solutions will account for 61 percent of worldwide M2M device connections by 2021, growing at a CAGR of 50 percent. Fixed line M2M connections are on the decline vs. the rising use of mobile M2M in the Enterprise. The highest share of connectivity-related revenue by 2021 (43%) is predicted to be in the Automotive sector, driven by the increasing adoption of consumer connected car solutions.
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