IaaS Market Experiencing Growth Spurt

News Article - Tuesday, 21 January 2014 11:41

By: Kerry Butters Category: Hosting

The demand for cloud services is one that’s growing year-on-year and doesn’t look like slowing any time soon. Whilst initially, SaaS offerings were by far the most popular of cloud solutions, more and more companies are now beginning to use IaaS and PaaS.

According to a recent study, it was found that in November of last year, 11.9% of those asked said that they were implementing IaaS. This is compared to March 2013, when it was found that just 4.9% of those asked were in the process of deployment to IaaS.

This is in line with what many of the leading technology research houses estimate, with GigiOM Research predicting that the IaaS market alone with grow 122% this year and Gartner’s previous prediction that the cloud market overall will generate spending of $677bn by 2016.

"The continued growth of the cloud services market will result from the adoption of cloud services for production systems and workloads, in addition to the development and testing scenarios that have led as the most prominent use case for public cloud services to date," Ed Anderson, research director at Gartner said. "Evidence of this growth is found in the increasing demand for cloud services from end-user organizations, met by an increased supply of cloud services from suppliers."

The Gartner forecast put IaaS in second place behind SaaS in terms of the most popular cloud product, although it’s expected that cloud services in general will all see strong and growing demand.

According to Frost & Sullivan, in Europe, the best choice if you’re considering implementing IaaS is Interoute, which recently won the Award for European Infrastructure-as-a-Service (IaaS) Telecoms Provider of the Year.

Frost & Sullivan commended the company for its "excellence in computing and network integration, product and technology innovation, as well as for its leadership in delivering customer value in the cloud”.

Interoute provide an on-demand IaaS solution through its, Interoute Virtual Data Centre (VDC) and is the only IaaS supplier that offers free data transfer across Europe.

"Our research shows that Interoute is the clear choice for the Company of the Year Award for telecoms providers in the European IaaS market because of its rapidly growing presence in the European IaaS market,” said Adrian Drozd, research director, Frost & Sullivan.

"Interoute's network ownership advantage means it can provide flexibility for its customers by allowing real-time movement between public clouds (accessed using public networks) and private clouds (accessed using virtual private networks). Interoute has also simplified network management for customers by virtualising and automating its network. Moreover, the use of network resources to transfer workloads between Interoute's cloud-enabled data centres is delivered at no extra cost.

"In a market that consists of a broad range of competing IaaS offerings, Interoute's VDC is able to provide a number of benefits to its customers by constantly updating its VDC platform and providing valuable supplementary services."

Matthew Finnie Interoute CTO added that the advantage to the company’s VDC is the integration of the Interoute network with Europe’s biggest cloud platform. He went on to say that the company will be expanding to include new sites in the US, Asia and Europe this year.

The full report from Frost & Sullivan on Interoute’s success can be found here.

Whilst cloud may have taken a little while to take off, it appears to be snowballing somewhat in 2014, as more companies recognise the benefits it brings in terms of affordability and scalability. Not only are large organisations increasingly turning to the cloud for SaaS and Iaas, but so too are SMBs.

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