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1 MarketsandMarkets Publisher Sample Phone: (US) or or (Int'l) Hours: Monday - Thursday: 5:30am - 6:30pm EST Fridays: 5:30am - 5:30pm EST MarketResearch.com

2 CLOUD INFRASTRUCTURE SERVICES MARKET SERVICES: PAAS, IAAS, CDN/ADN, MANAGED HOSTING, AND COLOCATION; DEPLOYMENT MODEL: PUBLIC, PRIVATE, AND COMMUNITY; REGIONS: NA, EUROPE, APAC, MEA, AND LA GLOBAL FORECAST TO 2019 It s all about markets MARKETSANDMARKETS

3 MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases, and custom research services. MarketsandMarkets covers fourteen industry verticals, including aerospace and defence, advanced materials, automotives and transportation, banking and financial services, biotechnology, chemicals, consumer goods, energy and power, food and beverages, industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and telecommunications and IT. Copyright 2015 MarketsandMarkets All Rights Reserved. This document contains highly confidential information and is the sole property of MarketsandMarkets. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of MarketsandMarkets. 1

4 1 INTRODUCTION 1.1 OBJECTIVES OF THE STUDY To define, describe, and forecast the global cloud infrastructure services market on the basis of types, deployment models, regions, and verticals To provide a detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges) To strategically analyze sub-segments with respect to individual growth trends, future prospects, and contribution to the total market To analyze the opportunities in the market for stakeholders and to provide the details of a competitive landscape for major players To forecast the revenue of market segments with respect to five main regions, namely, North America (NA), Europe, Latin America (LA), Asia-Pacific (APAC), and Middle East and Africa (MEA) To strategically profile key players and comprehensively analyze their core competencies and positioning To track and analyze competitive developments such as mergers and acquisitions, new product developments, and Research and Development (R&D) in the market 1.2 MARKET DEFINITION Cloud infrastructure services are services being offered by IT vendors specifically for cloud deployment. These services include Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Content Delivery Network (CDN)/Application Delivery Network (ADN), managed hosting, and colocation services. Cloud infrastructure services are provided to support planning, building, and managing cloud environments for enterprises. The key deployment areas for these services are public, private, and hybrid clouds. IaaS includes providing infrastructure such as network, storage, and servers. PaaS includes services for web software developers against their requirements for a platform for their applications. CDN/ADN delivers content and applications to the end-users over geographically distributed data centers. Managed hosting is a type of service in which end users are provided entire server on lease for their own operations. Colocation services provide physical space to enterprises to deploy their data centers. 1.3 MARKET SCOPE The market study covers various cloud infrastructure services market by type (IaaS, PaaS, CDN/ADN, managed hosting services, and colocation services) The market study covers the cloud infrastructure services market by vertical (Banking, Financial Services, and Insurance (BFSI), retail, telecommunications & ITES, healthcare, government, energy, education, media & entertainment, research & consulting services, manufacturing, and others) The market study covers the cloud infrastructure services market by deployment model (public, private, and hybrid & community cloud) 2

5 The market study covers the cloud infrastructure services market by region (NA, Europe, APAC, MEA, and LA) MARKETS COVERED The report on cloud infrastructure services market categorizes this market into the following segments. Global Cloud Infrastructure Services Market CLOUD INFRASTRUCTURE SERVICES MARKET By Service Type By Deployment By Vertical By Region Infrastructure as a Service Public Cloud Manufacturing North America Platform as a Service Private Cloud Healthcare Europe Content Delivery Network/Application Delivery Network Hybrid Cloud Energy APAC Managed Hosting Services Retail Middle East and Africa Colocation Services BFSI Latin America Telecommunication and IT Government Others Media and Entertainment Research and Consulting Services Education Others Note: *Others include automotive and outsourcing industries YEARS CONSIDERED IN THE REPORT Historical Year: 2012 Base Year: 2013 Estimated Year: 2014 Projected Year:

6 1.4 CURRENCY The denominated currency used in the report is United States (U.S.) dollar, with revenue indicated in $million and $billion. For companies reporting their revenues in U.S. dollars, we picked the revenue from their annual reports For companies that reported their revenue in other currencies, average annual currency conversion rate was used for that particular year to convert the value in U.S. dollars 1.5 LIMITATIONS The study is limited to five types of cloud infrastructures in the market, namely IaaS, PaaS, managed hosting services, colocation services, and CDN/ADN The report focuses on the cloud infrastructure services market with respect to cloud deployment and cloud-based technologies only and not for on-premises activities The internal staffing and related expenses are not considered while forecasting the market size 1.6 STAKEHOLDERS Cloud vendors Application design and development service providers System integrators/migration service providers Consultancy firms/advisory firms Training and education service providers Data integration service providers Managed service providers Data quality service providers 4

7 2 EXECUTIVE SUMMARY Cloud computing offers convenient, on-demand access to a shared pool of computing resources comprising networks, servers, storage, applications, and services., cloud computing is built upon three deployment models that include IaaS, PaaS, and Software as a Service (SaaS). Cloud Infrastructure is provided to the users by IaaS providers on pay-per-use basis in the form of virtual machine. The major vendors offering cloud infrastructure services are Amazon Web Services, Rackspace, Cisco, IBM, and others. These vendors aim at providing the services in a flexible, scalable, and elastic way to increase the efficiency of the users. Cloud infrastructure enables organizations to manage traditional enterprise workloads by providing open private cloud deployment model. The companies provide cloud-based integrated infrastructure services to improve manageability and are looking forward to make new technologies, investments and upgrades to better position themselves and capture the market. The cloud infrastructure services are fairly distributed across all the major verticals such as banking, telecom, healthcare, government, manufacturing, financial services, and others. Globally, the adoption rate of cloud infrastructure services is increasing due to the growing implementation rate in APAC, MEA, and LA regions. Due to major technology upgrades, several organizations have shifted their setup from premises-based to cloud. With it, the organizations can save costs and at the same time modernize and protect their infrastructure. Cloud-based infrastructure services are of significant importance as these services offer crucial benefits to enterprises such as rapid deployments and optimized capital expenditures and maintenance costs. They also make an enterprise more dynamic, which is the need of the hour in times of changing business requirements. IaaS, hybrid cloud, and private cloud support different parts of a business process, and the type of deployment adopted depends on the size and process of the business. TABLE 1 GLOBAL CLOUD INFRASTRUCTURE SERVICES MARKET SIZE AND GROWTH, ($MILLION, Y-O-Y %) Cloud Infrastructure Services Market e 2019-p CAGR ( ) Market Size Y-o-Y Sources: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis The table given above highlights the global cloud infrastructure services market size from 2012 to The cloud infrastructure services market is expected to grow from $ million in 2014 to $ million by 2019, at a Compound Annual Growth Rate (CAGR) of % from 2014 to The global market is further segmented into service types, verticals, deployment models, and regions. 5

8 2.1 MARKET EVOLUTION FIGURE 1 EVOLUTION OF CLOUD INFRASTRUCTURE SERVICES Beyond 2010 Cloud Infrastructure Services Pre- 1970s Mainframe Start of the automation phase Localized infrastructure Expensive 1990s Rise of the PC Rise in demand and penetration of the personal desktop Decentralized computing Birth of the IT services industry Introduction of ASP technology Emphasis on networking 2000s Hosted/Co-Located Environment IT infrastructure management services provided by third party providers Birth of the infrastructure outsourcing Increased use of virtualization Emergence of large data centers Reduction in costs and increased focus on core activities Emergence of the as a services paradigm Delivery of IaaS, PaaS, and SaaS services High bandwidth requirements Utility computing model Adoption of cloud infrastructure services by enterprises Sources: Expert Interviews and MarketsandMarkets Analysis The cloud infrastructure revolution started with mainframes, followed by the rise of personal computers, hosted/co-located environments, and finally the cloud infrastructure services. Later on, infrastructure services expanded with the emergence of cloud-based services and technologies and many other applications. Rapid growth of cloud computing followed, which provided a basis on which cloud-based infrastructure services could be built. Finally, organizations adopted the cloud-based infrastructure services to save time and cost associated with the traditional and premise based infrastructure services. This evolution is marked by the development of services such as IaaS, PaaS, CDN/ADN, managed hosting services, and colocation services. The cloud infrastructure service providers are trying to make things simple, so that the users can access and share documents from any remote location. The cloud infrastructure services can reduce the costs involved in buying, installing, upgrading, and maintaining infrastructure services. The movement to the cloud-based infrastructure services provides elasticity, scalability, and lower per person access costs. 6

9 FIGURE 2 MARKET SNAPSHOT OF REGIONS COVERED (2014) Market Share = % CAGR =% Market Share = % CAGR = 8.0% Market Share = % CAGR = % Market Share = % CAGR = % North America Europe Market Share = % CAGR = % Asia-Pacific Middle East and Africa Latin America Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis Note: The market share has been taken for the year 2014 and the CAGR taken is for the period 2014 to The figure above represents the regional market share and growth rate for the five regions. NA accounts for % of the overall cloud infrastructure services market share in NA will benefit from its technological advancement and register a CAGR of % for the forecast period of Europe ranks second in terms of growth rate in APAC accounts for a market share of % in 2014 and is projected to have the highest growth rate of % for the forecast period of The high growth rate in APAC is attributed to the high adoption rate of technology and increasing number of users of Internet, smartphones, and social media in the region. LA and MEA have a small market share of % and %, respectively, as these regions are in the introduction phase of the cloud infrastructure services market. 7

10 FIGURE 3 CLOUD INFRASTRUCTURE SERVICES MARKET SNAPSHOT ON THE BASIS OF SERVICE TYPES (2014 VS. 2019): Managed Hosting Services Colocation Services IaaS CDN PaaS Market Size ($Million) Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis 8

11 Disclaimer: MarketsandMarkets strategic analysis services are limited publications containing valuable market information provided to a select group of customers in response to orders. Our customers acknowledge, when ordering, that MarketsandMarkets strategic analysis services are for our customers internal use and not for general publication or disclosure to third parties. Quantitative market information is based primarily on interviews and therefore, is subject to fluctuation. MarketsandMarkets does not endorse any vendor, product or service depicted in its research publications. MarketsandMarkets strategic analysis publications consist of the opinions of MarketsandMarkets' research and should not be construed as statements of fact. MarketsandMarkets disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. MarketsandMarkets takes no responsibility for any incorrect information supplied to us by manufacturers or users. All trademarks, copyrights and other forms of intellectual property belong to their respective owners and may be protected by copyright. Under no circumstance may any of these be reproduced in any form without the prior written agreement of their owner. No part of this strategic analysis service may be given, lent, resold or disclosed to non-customers without written permission. Reproduction and/or transmission in any form and by any means including photocopying, mechanical, electronic, recording or otherwise, without the permission of the publisher is prohibited. 9

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