The cloud equipment market has been forecast to reach a value of $79.1 billion by 2018, primarily driven by the growing demand for public cloud computing services, and the increased deployment of private and hybrid clouds.
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 vendor's 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.
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.
A recent report, 'Cloud Equipment: A Global Strategic Business Report,' has suggested key drivers of cloud computing include scalability, business agility, cost, conversion of CAPEX to OPEX, mobility, innovation and competitive advantages.
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 data centre 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.
The US represents the largest market worldwide, while Asia-Pacific is forecast to emerge as the fastest growing regional market, with a compound annual growth rate (CAGR) of 10.5% through to 2018. 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 data centres.
Key players currently dominating the cloud equipment market include Cisco Systems Inc., CTERA Networks Ltd., Dell Inc., EMC Corp., Emulex Corp., Hewlett-Packard Co., IBM, Oracle, Promise Technology USA, Quanta Computer, Riverbed Technology and VMware Inc.
For more information on the cloud equipment market, see the latest research: Cloud Computing Market Research
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