There's a large-scale movement underway across the entire business world – increasingly, global enterprises are turning their backs on the tech infrastructures they used to embrace, and they're now looking at a new way of managing their data. They're saying goodbye to their legacy systems and instead welcoming cloud solutions as a new way of running the show.
More specifically, numerous businesses are turning to Infrastructure as a Service (IaaS) as a new model for coordinating their tech operations. IaaS offers companies everywhere a new backbone – they can outsource everything from servers and storage to hardware and networking components. While their outside providers own and operate the equipment, businesses merely pay for a scalable amount of service and reap the benefits from afar.
As the cloud at large, and the IaaS market more specifically, continue to grow, it's worthwhile to examine some current trends and figure out the direction of the business. As 2014 nears an end and 2015 approaches, where does the IaaS sector stand?
The cloud is booming
First of all, it's important to note that cloud computing overall is doing enormously well. According to the International Data Corporation, there are numerous factors in play here – there's a staggering volume of developers on the tech side and corporations willing to pay for their services, and together these two factions have combined to build a market that reach $56.6 billion in total spending in 2014 and is expected to grow to more than $127 billion in 2018. Frank Gens, senior vice president and chief analyst at IDC, says this growth is for real.
"It's worthwhile to examine some current trends and figure out the direction of the IaaS business."
"Over the next four to five years, IDC expects the community of developers to triple and to create a ten-fold increase in the number of new cloud-based solutions," Gens said. "Many of these solutions will become more strategic than traditional IT has ever been. At the same time, there will be unprecedented competition and consolidation among the leading cloud providers."
IaaS a particularly strong subset
Of course, within "the cloud," there are numerous subsets of the market. Interestingly, Gartner estimates show that IaaS is the fastest growing category within cloud computing right now – the organization projected that businesses worldwide spent a total of $13 billion on cloud system infrastructure services in 2014, and that figure is expected to balloon to $18 billion in 2015. IaaS may not be the largest sector within cloud computing, but it's certainly growing the fastest.
Optimism for future growth
There's also plenty of reasons to expect more growth from the IaaS market in the years to come. According to Insurance Networking News, IaaS has a lot going for it – business and technology expert Lenny Liebmann expects that more and more enterprises will adopt IaaS solutions as they ditch legacy systems and reshape their tech skeletons in future years.
"The economics of IaaS can be fairly compelling," Liebmann noted. "IaaS providers can achieve economies of scale unavailable to individual companies. As relatively young companies, they can also build more uniform environments than their potential customers, which typically must maintain multiple generations of information technology, further reducing their operating costs."
As the technical and fiscal benefits of a cloud infrastructure continue to gain recognition, the market will only get stronger. This movement is just getting started.