Market research firm Technology Business Research recently released a report on the private cloud market, suggesting that the preference for third-party delivered cloud platforms will continue to grow over the next two years. TBR surveyed more than 300 private cloud users in six different countries in an attempt to understand what drives or prevents customer adoption, current and expected buying behaviors and IT budgets for the coming year. The report suggested that hosted private cloud adoption is on the rise due to a growth in hybrid cloud integration, increasingly complex cloud platforms and security concerns all posing challenges to enterprise IT departments, as reported by eWEEK.
According to information reported in a 2013 mobile consumer document, there are currently an estimated 600 million cloud subscribers worldwide. The large number of cloud users helps to explain the growth in the private cloud market predicted by TBR. The market currently sits at $41 billion and is expected to increase to $69 billion by 2018. Adopting a private cloud solution helps to reduce costs, save time and improve enterprise security, making it increasingly popular with businesses.
Security still top of mind
The report found that worries regarding security remain the top factor in choosing to adopt a cloud solution. Security was a major concern for 59 percent of respondents and another 19 percent mentioned they would use a third-party service provider to help ease fears over security. Gartner recently released a study that found the top three private cloud services in use this year all deal with security issues. Just as they did last year, companies are most frequently employing email security, Web security services and identity and access management. Gartner also found that the cloud-based security services market will be worth $3.1 billion next year.
The Technology Business Research report also discovered that third-party delivered clouds remain the most popular, with 70 percent of companies using a managed cloud platform. Organizations adopting a self-built cloud solution make up the other 30 percent of users.
"As private cloud matures, growth is entering a different phase that is driven more by the flexibility and ease of management than by just security or cost savings," said Allan Krans, TBR cloud practice manager and principal analyst, in a statement. "The skills gap in implementing, migrating and managing private cloud is driving customers to seek vendors that deliver clear and end-to-end migration road maps."