INGATE

From The Sip Trunking Experts

TMCNet:  IaaS: Closer to the notion of

[November 16, 2012]

IaaS: Closer to the notion of "IT on tap" than ever before

(M2 PressWIRE Via Acquire Media NewsEdge) Munich -- IT infrastructure delivered as a service from the cloud (IaaS) has evolved beyond marketing hype to a serious and established means of IT provisioning. Driven by the success of the public cloud approach, and the standardization of pricing models, the private cloud concept sees huge demand. While the US market is leading in acceptance of IaaS, a number of unanswered questions today limit adoption especially in Central European countries.


According to PAC, in 2011 almost 21 billion Euros were invested in external ("public" or "hosted private") infrastructure cloud services at a worldwide level.

In 2012, this spending will reach almost 30 billion, and more than 70 billion Euros by 2016.

In a recently released report on the status quo and development of the global Infrastructure as a Service (IaaS) market, the research and consulting firm Pierre Audoin Consultants (PAC) gives insight into the adoption, barriers and future dynamics of IaaS.

PAC studies indicate a huge growth in all areas of IaaS, be it public or private, stand-alone or as part of hosting or other, more comprehensive outsourcing contracts. Other than in the Software as a Service (SaaS) space, where public cloud offerings dominate the market, private IaaS (outsourced private clouds) still account for the lion's share of the IaaS market. Outsourced private cloud services are near to conventional outsourcing/ outtasking. Often, existing outsourcing contracts have been transformed into cloud contracts, or (at least) outsourcing contracts with significant cloud elements. While storage has been predominant on the public IaaS market - and is expected to remain so in the coming years -, in the private IaaS market computing is the bigger part, not least through the "cloudification" of traditional data center services and hosting models during the last years.

"Traditional IT services have been widely based on complexity and heterogeneity, while "cloud" stands for standard and ease of use. This is why practically all suppliers are currently trying to determine their future positioning along the cloud value chain, aiming to defend existing business, and looking to tap new revenue streams. There will be a new competitive landscape as well as new cooperation models emerging from the cloud trend," explains Karsten Leclerque, Principal Consultant Outsourcing & Cloud at Pierre Audoin Consultants (PAC).

High IaaS adoption rate in the US The US market is the most advanced in the deployment and acceptance of IaaS alternatives to on-premise hardware. Within Europe, the UK is the most advanced country in accepting IaaS. "This is especially true for public cloud services. The market for public IaaS in the USA is more than twice the size of the whole EMEA market and four times the size of APAC. When it comes to outsourced private IaaS, this difference is much less significant. The US market has only less than 1.5 times the size of EMEA, and slightly more than twice the size of APAC," comments Mr. Leclerque.

Especially India has a remarkable position in the IaaS domain. Industry estimates show that digital information in India will grow from 40,000 petabytes to 2.3 million petabytes by 2020, twice as fast as the worldwide rate. With a huge surge in digital information, companies are looking for efficient as well as cost-effective infrastructure to host their data.

While in the US, already today more than 10% of IaaS solutions are used in a public cloud model, this share is no more than 5-8% in major European countries like Germany or France, but also in the APAC region; India, China, and Indonesia show the highest public cloud adoption rate there. PAC sees strong growth of the public cloud model in all regions, and expects shares of between slightly less than 20% and 30% by 2015.

Strong regional differences in cloud benefits perception Multi-national user surveys conducted by PAC show that the arguments in favor of cloud concepts are rather similar across all regions surveyed.

Financial advantages, ease of use/management, flexibility and scalability are generally considered as the most important advantages.

However, as Karsten Leclerque points out, "individual aspects are weighted differently. For instance, an increase in the reliability and availability of the infrastructure services is considered a positive aspect of the cloud concept in Anglo-Saxon countries. German or French companies, in contrast, consider criteria such as reliability or availability as areas of concern for the cloud model, or even as reasons against cloud usage, rather than a benefit." One explanation for this discrepancy in cloud adoption is, according to Mr. Leclerque, the higher maturity of the Anglo-Saxon countries in the area of IT sourcing. In this regard, US- and UK-based companies are less skeptical towards the externalization of data - one of the main fears that European companies have about the cloud concept.

Open questions on data privacy and legislation limit IaaS adoption Despite the impressive growth of public IaaS services in recent years there have still been obstacles to broader adoption. Privacy and availability of data and resources are often at the heart of cloud discussions. Yet, a lot of unanswered questions remain around security issues, lacking standards and partly unclear legislation - mainly around privacy and data protection.

Especially Continental European companies still fear a loss of IT performance through public cloud computing. Further arguments against cloud usage include dependency, provider lock-in, complexity and bandwidth/ network issues.

CIOs, however, also fear an increased complexity of IT services management when including third-party cloud solutions into their IT architectures - and with this, their necessary transformation from an IT to a service contract manager.

Cloud remaining on top of the IT agendas PAC analyst Leclerque is convinced, though, that cloud models will remain on top of the IT agendas in the coming years. "Users are well aware of the various benefits and are strongly interested in exploiting them; but they should not blindly follow the cloud trend.

Cloud usage promises many advantages, such as potential cost reduction, access to resources without the need to invest in own infrastructures, scalability, usage-based pricing, etc. The concept is still emerging, though, and there are many different concepts and offerings in the market, with partly very different security and service levels, that might or might not fit your needs." Costs are only one aspect that should be considered by IT users when it comes to the decision towards cloud usage or towards a specific offering. A basic comparison of the 'costs per gigabyte' for example would be too shortsighted. Many other aspects impact the TCO of different solutions, such as necessary implementation and integration efforts, additional network or security investments, trainings, etc, but also potential decommissioning costs, such as for the data (re-) transfer.

"Companies should be sure to ask themselves: Do we need a cloud concept at all And are we able/ willing to manage this kind of sourcing Users should carefully compare security and privacy measures as well as service and availability levels," warns Mr.

Leclerque.

The report "Infrastructure as a Service (IaaS) Worldwide: Adoption, Barriers and Future Dynamics" is now available. It provides insight into the evolving global IaaS market: the trends, challenges and opportunities as well as its vendor landscape and gives recommendations for IT users and vendors for the adoption and provision of IaaS concepts. Complementary to the report, PAC provides detailed market figures by cloud segments for 25 countries. More information at: http://bit.ly/Ty5n2M http://bit.ly/Ty5n2M About Pierre Audoin Consultants (PAC): From strategy to execution, PAC delivers focused and objective responses to the growth chal-lenges of Information and Communication Technology (ICT) players.

Founded in 1976, PAC is a privately held research & consulting firm for the software and ICT services market.

PAC helps ICT vendors optimize their strategies by providing quantitative and qualitative market analysis as well as operational and strategic consulting. We advise CIOs and financial investors in evaluating ICT vendors and solutions and support their investment decisions. Public institutions and organizations also rely on our key analyses to develop and shape their ICT policies.

For more information, please visit http://www.pac-online.com www.pac-online.com PAC's top analyst views: http://blog.pac-online.com http://blog.pac-online.com For information on the article: Author: Karsten Leclerque Principal Consultant k.leclerque@pac-online.com +49 89 2323 6827 PR Contact: Caroline Hannig-Sachon c.hannig-sachon@pac-online.com Tel: +49 89 2323 6833 Pierre Audoin Consultants (PAC) Holzstrasse 26 D-80469 Munich Phone: +49 (0) 89 23 23 68-0 Fax: +49 (0) 89 719 62 65 Email: info-germany@pac-online.com Web: http://www.pac-online.de www.pac-online.de ((M2 Communications disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info@m2.com)).

(c) 2012 M2 COMMUNICATIONS

[ Back To SIP Trunking Home's Homepage ]

Loading
Subscribe here for your FREE
SIP TRUNKING enewslettter.

Featured Partner


Featured Whitepapers

SIP Security for the Enterprise
Voice over IP (VoIP) is incorporated into a variety of computer networks, both public and private, and used for everyday transactions and communications among carriers, businesses, government agencies...

Making A Broadband Purchase Decision
Businesses today have many options for broadband connectivity. Clarifying your particular business needs prior to selecting a broadband provider will ensure an optimal match of broadband service to your requirements.

Voice-Optimized Network Delivers Premier Call Experience
Customers equate call quality with business quality. Real-time communication, interpersonal interaction, and the cordial tone of a call center representative can create a positive impression of your business that no email can match.

Featured Case Studies

Business Telecom Expenses Reduced 50%
A small to medium sized company in the midwest was interested in migrating to IP Communications, but in today's economy, they were hesitant to upgrade their communication system due to their perception that the cost would outweigh the benefits.

Multi-State Company Cuts Telecom Costs 50%
A multi-site, multi-state company with extensive monthly long distance fees and toll-free charges did not have adequate broadband for Broadvox SIP Trunking requirements, nor did they have a SIP enabled telephone system.

Discover Leisure Connects Remote Users to its IP-PBX
Discover Leisure is one of the largest resellers of caravans and motor homes in the UK. With 15 branch of?ces all over the country, the company spent a great deal of money every month just on internal phone calls.

Featured eBOOKS

Internet+: The Way Toward Global Unified Communication
Connecting the telephony of the enterprise PBX or Unified Communications (UC) system using SIP trunks instead of conventional telephone lines has been very successful in recent years.

What is SIP Trunking? Edition 2
SIP trunking is becoming more of a focus for service providers. One key issue many service providers face when deploying SIP trunks is NAT, or Network Address Translation, traversal.

What is SIP Trunking? Edition 1
A vast resource for information about all things SIP - including SIP, security, VoIP, SIP trunking and Unified Communications.

Featured Videos

Broadvox VAR Testimonial VAR 1:
Part 1 of the VAR (Value Added Reseller) Partner Program Testimonials for Broadvox...

E-SBCs AS The Demarcation Point:
Ingate's Steve Johnson talks to Erik Linask about the role session border controller plays as the demarcation point at...

Demystifying DPI
How can deep packet inspection protect your SIP traffic as well as your entire network?

Featured Resources

Partner Program Overview:
Over 4,000 VARs, Master Agents, Solution Providers, and Independent IT Professionals trust Broadvox. We offer customized services and solutions to fit seamlessly into any company's business model. And when you partner with Broadvox, every member of our team stands behind you and your customers 100%...

SIP Trunk UC Summit

What's New

Presenting the New Ingate/Intertex Website:
Internet+ is an extended Internet access allowing high quality SIP (Session Initiation Protocol) based real-time person-to-person communication, everywhere and for any application. It applies to both fixed and mobile networks ...

Featured Blogs

Featured Webinars

Secure SIP Trunking:
What You Need to Know

Successfully Deploying Enterprise SIP Trunking:
Tools and Techniques for Overcoming Common Roadblocks

Featured Podcasts

Getting the Most Out of Your SIP Trunks:
Ingate's Steve Johnson and TMC's Erik Linask discuss how best practices forgetting the most out of SIP Trunking services and common pitfalls to avoid.

Featured Datasheets

Ingate SIParator E-SBCs
Adopting SIP is a simple process with the Ingate SIParator, the secure enterprise session border controller (E-SBC). The SIParator makes secure SIP communications - including VoIP,SIP trunking and more - possible while working seamlessly with your existing network firewall.

Ingate Firewalls
Everyone is talking about enterprise usage of VoIP, instant messaging and other types of realtime communications including presence and conferencing.

SIP Trunk Solutions for Service Providers
The award-winning Ingate Firewall and Ingate SIParator deliver a high quality, reliable SIP trunk connection between the customer's IP-PBX and the service provider network, and solve interoperability issues to simplify deployments and support for remote diagnosis of reported issues.