How Big is The Opportunity for Cloud Computing?

More cloud stats, this time from here:

By 2011 Merrill Lynch says the cloud computing market will reach $160 billion.

The number of physical servers in the World today: 50 million.

By 2013, approximately 60 percent of server workloads will be virtualized

By 2013 10 percent of the total number of physical servers sold will be virtualized with an average of 10 VM’s per physical server sold.

At 10 VM’s per physical host that means about 80-100 million virtual machines are being created per year or 273,972 per day or 11,375 per hour.

50 percent of the 8 million servers sold every year end up in data centers, according to a BusinessWeek report

The data centers of the dot-com era consumed 1 or 2 megawatts. Today data center facilities require 20 megawatts are common, – 10 times as much as a decade ago.

Google currently controls 2% of all servers or about 1 million servers with it saying it plans to have upwards of 10 million servers ( 107 machines) in the next 10 years.

98% of the market is controlled by everyone else.

Hosting / Data center providers by top 5 regions around the world: 33,157

Top 5 break down
USA: 23,656
Canada: 2,740
United Kingdom: 2,660
Germany: 2,371
Netherlands: 1,730.

According to IDC, the market for private enterprise “Cloud servers will grow from an $8.4 billion opportunity in 2010, representing over 600,000 units, to a $12.6 billion market in 2014, with over 1.3 million units.

Market opporunity based purly on server count. $160 billion dollars divided by 50 million servers = $3,200 per server.

The amount of digital information increased by 73 percent in 2008 to an estimated 487 billion gigabytes, according to IDC.

World Population 2009: 6,767,805,208
Internet Users 2000: 360,985,492
Internet Users 2009: 1,802,330,457
Overall Internet User Growth: 399.3%
Fastest Growth Markets (Last 10 years) – Africa +1,809.8%, Middle East, +1,675%, Latin America +934.5%, Asia +568.8%

Slowest Growth Markets – North America +140.1%

Cloud value by world population: $23.64 per person

Cloud value by Global Internet population: $88.77 per person

Netcraft Finds 365,000 Web Sites on EC2

IBM says The Cloud cuts IT labor costs by up to 50%, improves capital utilization by 75%

IDC estimates that sales of public cloud services will grow at a 25 percent annual clip. The annual growth rate for typical IT projects, conversely, is 5 percent.

SaaS Revenue to Grow Five Times Faster Than Traditional Packaged Software Through 2014, IDC Finds

* By 2012, IDC expects that less than 15% of net-new software firms coming to market will ship a packaged product (on CD). By 2014, about 34% of all new business software purchases will be consumed via SaaS, and SaaS delivery will constitute about 14.5% of worldwide software spending across all primary markets.

* By 2012, nearly 85% of net-new software firms coming to market will be built around SaaS service composition and delivery; by 2014, about 65% of new products from established ISVs will be delivered as SaaS services.

* SaaS-derived revenue will account for nearly 26% of net new growth in the software market in 2014.

* Traditional packaged software and perpetual license revenue are in decline and IDC predicts that a software industry shift toward subscription models will result in a nearly $7 billion decline in worldwide license revenue in 2010. As a result, a permanent change in software licensing regime will occur.

* SaaS segment mix will shift toward infrastructure and application development and deployment/PaaS, and away from U.S. dominance. IDC expects that by 2014, applications will account for just over half of market revenue. This shift will happen in part as a result of increasing IT cloud spending by enterprise IT groups and commercial cloud services providers (cloud SPs) relative to end-user spending

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Brian

Managing Partner at meshIP, LLC

Brian Byrne is the founder and Managing Partner of Dallas based meshIP, a technology services firm offering cloud computing strategies and services. He is an accomplished executive with senior management experience in all facets of the technology, telecom, cloud computing, and SaaS industries. He has proven success in developing, financing and executing strategic plans as well as launching new ventures. His background includes a record of significant achievement in international business development and his credentials include a MBA in Marketing and Management Strategy from the J.L. Kellogg Graduate School of Management at Northwestern University, a MS from the School of Computer Science at DePaul University, and a BBA in Finance from the University of Notre Dame.

He is also the inventor of the patented meshDETECT, Secure Prison Cell Phone Solutions.

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