Analysts claim cloud on the rise

Analysts at Ovum have released a report claiming IT service providers are increasing their cloud investment, despite the hype and confusion

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Analysts claim cloud on the rise Despite the confusion amongst customers, IT service providers are spending big on cloud services says Ovum.
By  Nathan Statz Published  August 5, 2009

Analyst firm Ovum has released a report which claims IT service providers are continuing to invest heavily in cloud services despite the confusion surrounding the technology.

John Madden, principal analyst at Ovum, believes that service vendors are attempting to differentiate their cloud computing services for customers through virtualisation and IT service delivery, and by demonstrating the positives of leveraging a cloud service during a recession.

“Cloud computing continues to dominate discussions among enterprise IT customers as they look for better and more cost-effective ways to operate and deliver IT services,” claimed Madden.

The technology associated with cloud computing has previously drawn fire from Larry Ellison, CEO of Oracle, and Richard Stallman, founder of the Free Software Foundation. Controversy also surrounded the launch of the Open Cloud Manifesto in May.

“Although cloud-based services hold great promise for customers and the vendors that offer them, for the vast majority of enterprise customers there is still far too much hype surrounding what constitutes a cloud, the kind of services that can be delivered and how those will ultimately evolve,” added Madden.

“However one views the cloud market, service providers want to remain active participants in the evolution of cloud services”, Madden continues. “Even if the hype level in cloud computing remains high, providers fear that not talking about cloud as part of their services portfolio could lead to customers viewing them as also-rans in this evolving market.”

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