Category Archives: Gartner

Cloud computing will impact $1 trillion of IT spending decisions – Gartner

Growing Money - Chart In RiseAnalyst firm Gartner has predicted more than $1 trillion in IT spending will be directly or indirectly impacted by the transition to cloud computing by 2020.

As IT spend steadily shifts from traditional IT offerings through to the cloud, a process which the Gartner team has coined the ‘cloud shift’, the rate in which enterprise organizations transition through to cloud is expected to gradually increase year-on-year. The aggregate amount of cloud shift in 2016 is estimated to reach $111 billion, though this will increase to $216 billion in 2020. The Gartner team believe cloud computing will be one of the most disruptive forces of IT spending since the early days of the digital age.

“Cloud-first strategies are the foundation for staying relevant in a fast-paced world,” said Ed Anderson, Research VP at Gartner. “The market for cloud services has grown to such an extent that it is now a notable percentage of total IT spending, helping to create a new generation of start-ups and “born in the cloud” providers.”

In terms of the specific segments, IaaS is the largest market accounting for $294 billion, though demonstrates one of the lowest levels of cloud shift through 2016, only representing a cloud shift rate of 17%. Business Process Outsourcing, or BPaaS, will represent the biggest cloud shift rate at 43%, though the expected market value through 2016 will be $119 billion.

Gartner Cloud Shift 1

Cloud Shift Summary by Market Segment

While the potential of cloud computing has been exhaustively discussed over recent years, one of the growing debates in the industry has been centred on the skills gap. Cloud requires not only new skills within the organization, but also a different approach in problem solving as well as a new business culture, should be benefits be realized. This challenge is currently being addressed by numerous organizations throughout the world.

“There is no doubt that cloud delivers unmatched business benefits in terms of usability, choice and agility,” said Angelo Di Ventura, Director at Trustmarque. “At the same time it requires wholly new skills and capabilities, and a complete IT transformation to maximise the value that businesses can gain from it – cloud can cause considerable disruption if left unchecked.

“The transition from an internet-enabled business to a digital business running in the cloud represents a huge jump for the majority of IT departments, whose existing infrastructure is designed for ‘business as usual’ operations. Ultimately, there is no one-size-fits-all model when it comes to making cloud work for a business.”


Connected home will be operated by Apple and Google

Research from Gartner has claimed 25% households in developed economies will utilise the services of digital assistants, such as Apple’s Siri or Google Assistant, on smartphones as the primary means to interact with the connected home.

The user experience is an area which has been prioritized by numerous tech giants, including those in the consumer world, as the process of normalizing the connected world moves forward. Although IoT as a concept has been generally accepted by industry, efforts to take the technology into the wider consumer ecosystem are underway.

Connecting all IoT applications under a digital assistant could be a means to remove the complexity of managing the connected home, playing on the consumer drive for simplicity and efficiency. The digital assistant also presents an entry point for artificial intelligence, as appliances and systems in the home can be optimized alongside information available over the internet. Energy consumption, for example, could potentially be reduced as the digital assistant optimizes a thermostats levels dependent on current weather conditions.

“In the not-too-distant future, users will no longer have to contend with multiple apps; instead, they will literally talk to digital personal assistants such as Apple’s Siri, Amazon’s Alexa or Google Assistant,” said Mark O’Neill, Research Director at Gartner. “Some of these personal assistants are cloud-based and already beginning to leverage smart machine technology.”

The process of normalizing IoT in the consumer world will ultimately create a number of new opportunities for the tech giants, as the technology could offer a gateway into the home for a number of other verticals. Banks and insurance companies for example, could offer advice to customers on how they could save money on bills, should they have access to the data which is generated in the connected home.

“APIs are the key to interoperating with new digital interfaces and a well-managed API program is a key success factor for organizations that are interested in reaching consumers in their connected homes,” said O’Neill. “In the emerging programmable home, it is no longer best to spend time and money on developing individual apps. Instead, divert resources to APIs, which are the way to embrace the postapp world.”

Public cloud service revenue forecast to top $200 billion in 2016

GrowthThis year the global public cloud services market will grow by 16.5 per cent on last year’s total of $175 billion in sales, according to market analyst Gartner. Total sales of the various cloud services will be worth $204 billion, it forecast.

The most exciting market to be in will be infrastructure services, with its 38.5% rate of expansion making it the fastest growing cloud market. Sales of infrastructure as a service [IaaS] will create $22.4billion in revenue in 2016, according to Gartner’s forecast.

Cloud advertising is the largest segment of the global cloud services market. Though it is growing at around a third of the rate of IaaS (at 13.6%) its sales in 2016 will reach $90.3 billion. The next biggest segment is predicted to be sales of business processes (BPaaS) which will be worth $42 billion, while cloud application services (SaaS) will create $37.75 billion of revenue in 2016. Surprisingly, cloud management and security will be worth a relatively lowly figure of $6.248 billion, a figure that is possibly due to expand as the cloud industry matures.

IaaS is booming because enterprises are abandoning the idea of building their own data centres and moving their infrastructure to the public cloud, according to report author Sid Nag, research director at Gartner. However, Nag had words of warning for vendors in this area. “Certain market leaders have built a significant lead in this segment, so providers should focus on creating differentiation for success,” said Nag.

This year it will be impossible to go wrong in the public cloud as high rates of growth will be enjoyed across all markets. Gartner expects this to continue through 2017, said Nag. “This strong growth reflects a shift away from legacy IT services to cloud-based services, due to increased trend of organisations pursuing a digital business strategy,” said Nag.

AWS to expand to India in 2016

AWS said India is the next big market for public cloud expansion

AWS said India is the next big market for public cloud expansion

Amazon unveiled plans this week to bring its Amazon Web Services (AWS) infrastructure to India by 2016 in a bid to expand into the quickly growing public cloud services market there.

AWS is already available in India and the company claims to have over 10,000 local customers using the platform, but the recently announced move would see the company set up its own infrastructure in-country rather than relying on delivering the services from nearby availability zones like Singapore.

The company says the move will likely improve the performance of the cloud services on offer to local organisations.

“Tens of thousands of customers in India are using AWS from one of AWS’s eleven global infrastructure regions outside of India. Several of these customers, along with many prospective new customers, have asked us to locate infrastructure in India so they can enjoy even lower latency to their end users in India and satisfy any data sovereignty requirements they may have,”said Andy Jassy, senior vice president, AWS.

“We’re excited to share that Indian customers will be able to use the world’s leading cloud computing platform in India in 2016 – and we believe India will be one of AWS’s largest regions over the long term.”

The India expansion comes at a time when the local market is maturing rapidly.

According to analyst and consulting house Gartner public cloud services revenue in India will reach $838m by the end of 2015, an increase of almost 33 per cent – making it one of the fastest growing markets for public cloud services in the world (global average growth rates sit in the mid-twenties range, depending on the analyst house). The firm believe many local organisations in India are shifting away from more traditional IT outsourcing and using public cloud services instead.

Garter: IoT requires new architecture strategy

The IoT will require a new architectural approach, Gartner claims

The IoT will require a new architectural approach, Gartner claims

Enterprise IT professionals and architects will need to develop new architectures in order to help mitigate the technological, legal and reputational risks associated with delivering Internet of Things services, Gartner claims.

It has been suggested by some industry specialists that the Internet of Things has the potential to cripple existing datacentre infrastructure from a technical perspective, and could also create new or heightened risks around data security and regulatory compliance.

That said, Gartner believes developing the right architecture to handle the wealth of data generated by IoT sensors will be key to ensuring infrastructure can keep pace with new services being rolled out, and help deal mitigate other non-technical risks.

Mike Walker, research director at Gartner said enterprises need to understand not just the opportunities this wealth of information can generate but the risks as well. He said the anticipated data growth may require organisations to develop new competencies around regulatory compliance, and reassess the impact of security breaches on corporate reputation.

“Enterprise architects need to determine the potential impact, both positive and negative, of IoT technologies and then create actionable deliverables that can define which business opportunities should be pursued as result,” Walker said.

“The first step is bringing together various business unit and IT leaders to explore how the IoT can impact their respective business domains, and agree on actionable business scenarios that will require deep collaboration between them.”

Walker suggested that organisations create internal competency centres to help coordinate activities across internal stakeholders.

“Organisations must understand the profound impact new sources of information will have. Enterprise architects are best positioned to discuss and enable the most lucrative opportunities in partnership with business unit and IT leaders. At the same time, they must work with chief data officers and security officers to structure this data in a way that mitigates the worst risks of pursuing these opportunities,” Walker added.

4 Reasons to Improve Your Infrastructure Management On-The-Cloud

Infrastructure-as-a-service or IaaS is slowly yet steadily improving as the longest solutions towards successful integration of services and its management. Enterprise Resource Planning (ERP) and Customer Relationship Management systems are perhaps the quickest systems to adapt to legacy systems particularly on the cloud. Companies have not left any stone unturned when it came to adopting to the cloud, particularly towards adopting legacy systems. Not only have companies upgraded their spending potential for adapting to the cloud but it has also seen the adoption of cloud-based platforms as the leading trend with towards profit maximization and corporate sustainability.

Are companies inclined to spend more in IaaS?

According to a recent Gartner study, public cloud services are likely improve over the years which indirectly means that the global spending in infrastructure management is likely to grow. The growth rate or the CAGR will sustain at 17.7% over the years till the year 2016. Here’s what they predict about the investments in IaaS or infrastructure-as-a-service.


At a sustained CAGR of 41.3% till 2016, the investments in IaaS is likely to be the fastest growing segments in the world. As companies want to reach to a wider audience, there is no doubt that companies want to achieve a competitive advantage before their competitors. 

Geographically too, companies across the world are increasing their IT spending towards cloud computing to enhance their company’s performance.


Essentially, companies in Northern America, and Western Europe are the most eager or have already captured the benefits of cloud computing with an integrated infrastructure management. 

So, what is the direct advantage of having a cloud computing for integrated infrastructure management? Let’s take a look at the 4 critical advantages of having an integrated infrastructure management on the cloud:

  1. The lower your TCO, the better: When it comes to facilitating lower total cost of operations or achieving the best of cost savings, one of the critical ways of achieving either of these objectives is by going on the cloud. Not only have companies reduced their costs towards IT management services but they have avoided costs involved in severe challenges for managing various IT environments, while adapting to the cloud.
  2. Ability to concentrate on core businesses: Freeing up your time for core businesses is another critical way to facilitate enhanced business strategies. By implementing infrastructure management on the cloud, your strategic IT resources can concentrate on core IT strategies that facilitate business growth.
  3. Respond better to business needs: Enhance your flexibility and further your responsiveness to indulge into what your customers and niche clients want. Enhance your IT infrastructure with the availability of reliable and easily available services on the cloud.
  4. Improve the standards of service levels: Increase the level of security, stability, and IT infrastructure availability. With greater synergy between existing and newer technologies for infrastructure management, there are chances that one can make the entire IT infrastructure more accountable.

In other words, by implementing the best of IT integrated infrastructure strategies, one is virtually capable of indulging in cost savings, heightened competitive advantage, and greater accountability.

To know more about infrastructure management please visit HCL Technologies

Cloud Research — Recent Reports

IDC Health Insights Releases MarketScape Report on Top U.S. Care Management Vendors for Healthcare Payers

IDC Health Insights released a new MarketScape report that evaluates the top nine U.S. Care Management vendors for healthcare payers. The comprehensive study, IDC MarketScape: U.S. Care Management 2012 Vendor Assessment for Healthcare Payers (Doc #HI235803), evaluates the post-reform era market landscape and profiles the following vendors: Casenet, Inc., Click4care, Inc., DST Health Solutions, Landacorp, IkaSystems, Medecision, McKesson, TriZetto, and ZeOmega.

The IDC Health Insights report found the care management market will be a highly volatile and evolving market through at least 2015. As vendors position for new opportunities in the post-reform era, there will be an unprecedented expansion of functionality and services. Key solution investments include embedded and integrated analytics, provider and consumer engagement strategies and technologies, real time triggers and alerts, integration of clinical data, and multi-platform channel delivery including cloud and iPad initiatives.

Digital River’s New White Paper Helps Consumer Electronics Manufacturers Address Complex Global Recycling and Copyright Regulations

Digital River released its latest white paper, Regulatory Fee Management: Navigating the Complex World of Global Compliance. The white paper offers consumer electronics (CE) manufacturers insights into the complicated recycling and copyright regulations that govern the manufacture, use and end-of-life handling of electronics and electric devices. The paper also helps manufacturers weigh some of the important considerations that go into building and maintaining a successful compliance management solution. A complimentary copy of the white paper is available for free download.

Gartner on SAP Implementation: Accenture in Leaders Quadrant

Accenture has been positioned in the “Leaders” quadrant in Gartner Inc.’s recently published “Magic Quadrant for SAP Implementation Service Providers, North America.”

Gartner assessed 20 of the leading service providers for the Magic Quadrant, which focused on the implementation services of SAP solutions for each company across consulting, system integration and implementation in North America.

Research and Markets: Mobile Content Market – Size, Share, Trends And Forecasts 2011 – 2017

Mobile Content Market – Global And U.S. Industry Analysis, Size, Share, Trends And Forecasts 2011 – 2017

The mobile content industry comprises of mobile games, mobile music and mobile video. In the overall mobile content industry, mobile games were the largest market segment with a revenue share of 53.3% in 2011. The segment will further consolidate its position with 61.7% market share in 2017. The global mobile games market was worth USD 3.5 billion in 2011 and is expected to reach USD 11.4 billion in 2017 with a CAGR of 21.9% from 2011 to 2017.

Research and Markets: Cloud Messaging Market Trends, 2011-2014

This report presents the results of a detailed research program into preferences and plans for cloud-based messaging and related capabilities among North American organizations over the period 2011-2014. It focuses on various types of cloud messaging-related capabilities, including complete messaging services, messaging security services and archiving services, among others.

Cloud Messaging Market Trends, 2011-2014

Storage Gets Smarter with Release of IBM Tivoli Storage Productivity Center 5.1

Delivering on its vision of integrating hardware and software product lines to improve efficiencies wherever possible across its solutions portfolio, IBM announced several new features and capabilities for its already industry-leading Tivoli Storage Productivity Center (TPC) product line. A new GUI interface, additional NAS and cloud support, enhanced reporting, tiering optimization along with simplified packaging and pricing are welcome additions. With the release and general availability of TPC 5.1, EMA believes IBM has made significant strides in fulfilling its promise to simplify storage resource management and lower the total cost of storage.

Latency Will Make or Break the Cloud Economy

The holy grail of having anywhere, anytime access to services in the cloud is becoming a reality. Ubiquitous broadband, both fixed and mobile, will be the enabler of this transformation in the way we use computing resources. This report examines why latency rather than bandwidth dominates the user experience, and what opportunities this presents for operators to differentiate themselves.

Parallels Named a “Cool Vendor” in Cloud Services by Industry Research Firm



RENTON, WA and TORONTO – July 10, 2012 – Parallels® (, the hosting and cloud services enablement leader, today announced technology research firm Gartner has recognized Parallels as a Cool Vendor for 2012 in the recent report, “Cool Vendors in Cloud Services Brokerage Enablers, 2012.” The report recognizes those firms with new and innovative technologies for delivering cloud brokerage services. This announcement was made during the 2012 Microsoft Worldwide Partner Conference, taking place this week in Toronto through July 12.


Recognized for its Parallels Automation software, including Parallels Automation for Cloud Marketplace, Parallels is helping service providers profit from the growing demand in Small and Medium Business (SMB) cloud services. Parallels Automation is a complete operational and business support system that automates all aspects of delivering, managing and billing for service providers, enabling them to offer services ranging from Infrastructure as a Service (IaaS) to Platform and Software as a Service (PaaS and SaaS).  Parallels also pre-negotiates wholesale contracts with ISVs and SaaS providers, and arranges relationships with customer support companies, enabling providers to create a Cloud Services Brokerage quickly and efficiently.  Additionally, Parallels Automation for Cloud Marketplace has a flexible architecture that makes it easy for providers to add additional applications enabled by the open Application Packaging Standard (APS). 


“We are honored to be recognized by Gartner as a Cool Vendor in Cloud Services Brokerage Enablement,” said Jack Zubarev, President of Parallels. “With Parallels Automation, including our Cloud Marketplace and our growing list of APS packaged applications, we are making it easy for service providers to quickly and efficiently deliver the full suite of Microsoft hosted applications that meet the diverse needs of SMBs.”


Parallels recently announced the general availability of Parallels Automation 5.4, the latest version of the most comprehensive hosting and cloud services delivery system used by hundreds of service providers worldwide — from the world’s largest telecom operators to top hosters and providers of vertical solutions (see the Gartner report for a list of reference partners). Parallels Automation 5.4 now includes support for delivering Microsoft® Lync and other Microsoft® hosted applications, and its built-in Parallels Windows Server® Provisioning Engine helps service providers manage the migration of Microsoft Hosted Exchange® and other applications from Microsoft’s former Hosted Messaging and Collaboration (HMC) solution.  


The full Gartner report is available courtesy of Parallels here.


About Parallels
Parallels is a worldwide leader in hosting and cloud service enablement and desktop virtualization. Founded in 1999, Parallels is a fast-growing company with more than 900 employees in North America, Europe, and Asia.


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