Public cloud providers risk losing enterprise market warns IDC

Concerns over security, availability and integration pushing CIOs overwhelmingly towards private cloud rollouts

Tags: Cloud computingGoogle IncorporatedIDC Middle East and Africa
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Public cloud providers risk losing enterprise market warns IDC IDC warns that public cloud providers are risking losing the cloud unless they can deal with CIO concerns.
By  Ben Furfie Published  August 5, 2010

Revenues from public cloud services will continue to lag behind those of private providers as enterprises continue to voice concerns over security, integration, availability and costs dog adoption, warns IDC.

The research firm warned that public cloud providers risk falling behind unless they move to address the concerns from enterprise CIOs. Google, in particular, has been singled out in the past for its approach to cloud services, and their incompatibility with many CIOs desire to keep some sensitive data and services on site.

"There is still some lingering apprehension about over issues like integration, availability, security and costs," said Katherine Broderick, research analyst, Enterprise Platforms and Datacenter Trends. "These concerns, and how they are addressed by IT vendors, will continue to guide the adoption of cloud computing over the next several years."

However, despite these concerns, the company is still predicting a large increase in the amount of money spent on IT deployments by CIOs.

"Many IT decision makers are seriously considering cloud computing as a way to dramatically simplify their sprawling virtual and physical infrastructure," continued Broderick.

IDC predicts that the push by CIOs and IT decision makers to cut costs will see spending on cloud services double over the next four years, with investment in private clouds accounting for 96% of the increase. By 2014, the analyst firm predicts the market will be worth $6.4bn, up from $3.18bn in 2009.

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