30% cloud vendors to go out of business by 2015: IDC

Asia Cloud Forum Editors
24 Sep 2012

By 2015, about 30% of the existing cloud service providers will be out of business, as there will be many players entering and leaving the cloud play field, research firm IDC said.

CIOs should therefore ensure due diligence when selecting a cloud service provider.

IDC added that over the last five years, cloud computing is starting to present business benefits, as cloud service and technologies are no longer simply used to replace ageing or costly on-premises infrastructure, but is gradually used as a marketplace for sourcing enterprise IT and business services.

"If we compare the cloud services market in 2012 with that of 2011, it's clear that the last 12 months have seen an important change in the way which cloud services are being adopted," said Chris Morris, associate vice president for Asia Pacific cloud services and computing.

"In 2011, 'The Cloud' was seen as a very useful way to cost-effectively replace aging or augment existing IT infrastructure. But in 2012, 'The Cloud' has taken on an additional function as a marketplace for the sourcing of enterprise IT and business services by both IT and LOB managers," he added.

New 'cloud' skills

"Today, cloud services adoption is being driven as much by business managers as it is by the CIOs. To successfully adopt cloud services, involvement with the entire cloud ecosystem is necessary," Morris said.

"On top of core technology management skills, enterprise cloud sourcing will require extended sourcing management skills, scarce service management skills and provider management skills, all of which are not often found in the average IT organization."

A year ago, IDC predicted that by 2015, cloud-based services will be available to meet every business requirement. For small and medium businesses, that scenario is the case now. To maximize business agility, CIOs are starting to use these services, driven by the line of business managers. "The Cloud" is no longer a marketing label as the evolution of cloud services will mean that it permeates the sourcing strategies of the CIO and business unit manager alike.


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