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Robust Demand for Cloud Services Drives the Market for Cloud Equipment, According to New Report by Global Industry Analysts, Inc.

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San Jose, California (PRWEB) May 28, 2013

Follow us on LinkedIn – Against a background where companies are coerced into recalibrating their network infrastructure into cost-effectively supporting distributed Information Technology applications, the importance of cloud computing comes to the fore. Key drivers of cloud computing include scalability, business agility, cost, conversion of CAPEX to OPEX, mobility, innovation and competitive advantages. Cloud computing is an emerging paradigm computing concept that enables both information technology infrastructure and software to be delivered directly over the Internet as a service. This type of an arrangement whereby companies can expand network capacity, and run applications directly on a vendors network, offers a host of advantages with the most primary being radically lower IT costs. The lower budgetary requirements and commitments allow even smaller companies to piece together an IT project without spending on purchasing legacy server, and storage systems.


Unrelenting rise in storage requirements, explosion in application sprawl, guzzling demand for more computing power, ever increasing length, breath, scale and density of networks, together makes datacenter management more challenging by the year. Cloud computing given its potential to address all of these issues will continue to witness strong growth. Effective resolution of bottlenecks related to security, regulatory compliance, privacy, interoperability, reliability, pricing, complexity, lack of standards, lack of transparency will additionally spur adoption of cloud computing services.


Defined as being inclusive of servers, storage, networking hardware and high speed links, cloud equipment represents a growing market with outlook dovetailed to the health of the cloud IT services market. Widespread adoption of cloud services, especially public cloud services, is driving demand for cloud equipment among cloud based IT service providers. Rapid maturing of cloud technologies and business platforms like SaaS, PaaS, IaaS, is a key factor accelerating the adoption of cloud services. Currently, over 60% of enterprises utilize the cloud for performing IT related business operations. Mirroring the level of maturity is the growing use of multiple clouds or hybrid clouds, which is a combination of a public cloud and an internal private cloud.


A key trend in the market is the emergence of traditional telecom service providers as a lucrative customer cluster for cloud equipment. Telecommunication companies like AT&T and Verizon are stepping up their cloud infrastructure. Key reasons cited for the ingress of telecom giants into the B2B cloud services market include increased competition and rapidly falling ARPUs in traditional business areas related to voice communications. Also, telecom companies require lesser investments to diversify into the cloud services space, since they own the network required to provide OTT (Over the Top) clouds services and applications. With data handling services increasingly becoming the future of telecom operators as against the conventional voice services, investments in cloud are poised to gain traction in the coming years. In the year 2011, Communication Service Providers (CSPs) worldwide invested over US$ 14.5 billion in cloud related projects. Although, Europe continues to remain an important market for telecomm cloud and cloud-based telecom services like video-on-demand, social networking and cloud storage, CSP investments in cloud infrastructure remained fairly muted as a result of the broad economic weakness caused by the ongoing debt crisis. CSPs in developing countries are poised to generate increased demand for cloud equipment as leading companies tap into the cloud to offer customers a brand new value proposition revolving around extending cloud benefits to mobile applications. The scenario is poised to benefit demand for cloud equipment.


As stated by the new market research report on Cloud Equipment, the United States represents the largest market worldwide. Asia-Pacific is forecast to emerge as the fastest growing regional market with a CAGR of 10.5% over the analysis period. Growth in the region is led by rapid diffusion of cloud services in China and India, rise in cloud-related entrepreneurship, increased inflow of cloud related venture capital funds, and rise in the number of new cloud based datacenters. Mobile-based cloud computing in developing countries additionally presents an enormous potential to bridge the digital divide that stems from the disproportionate penetration of desktop PC penetration as compared to mobile phones. Small and medium-sized enterprises (SMEs) are especially driving growth largely as a result of proffered benefits like operational efficiency, productivity gains and security enhancements.


Major players in the market include Cisco Systems, Inc., CTERA Networks Ltd., Dell Inc., EMC Corporation, Emulex Corporation, Hewlett-Packard Company, IBM, Oracle, Promise Technology USA, Quanta Computer, Riverbed Technology, and VMware, Inc., among others.


The research report titled Cloud Equipment: A Global Strategic Business Report announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in US$ for all major geographic markets including the United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (Australia, China, India, South Korea, and Rest of Asia-Pacific), Latin America (Brazil and Rest of Latin America), and Rest of World. World market for cloud equipment is also analyzed by type of cloud deployment (Private Cloud, Public Cloud, and Hybrid Cloud) and by product segments (Networking Infrastructure, Servers, and Storage).


For more details about this comprehensive market research report, please visit


About Global Industry Analysts, Inc.

Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world’s largest and reputed market research firms.


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