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Cisco IBSG Study – By 2013, Public Cloud Computing Services Revenue Will Reach Nearly US$44 Billion

Cloud computing has raised a lot of questions with service providers (SPs) and enterprises alike. Because the Cisco Internet Business Solutions Group (IBSG) is in the business of answering questions, we talked to IT decision makers across several verticals in the United States, the European Union, and India to see what companies are thinking.

We found that cloud is happening faster than most people imagine. Almost everyone we interviewed is in the process of evaluating cloud computing. We estimate that by 2013, public cloud computing services revenue will reach nearly US$44 billion, and more than 12 percent of enterprise workloads will be running in the public cloud. A trend toward convergence of the IT and networking departments will ease this transition.

Companies are not jumping wholesale into a cloudy future – decisions are being made on an application-by-application basis. The factors driving enterprises to the cloud include variable workloads (tax season for financial firms comes to mind), and the ability to quickly set up and get running. Also, some apps just run better in the cloud, such as data entry or process interfaces to partners or suppliers.

Inhibiting cloud are the usual suspects: security, legacy architectures, and sunk costs.

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Announcing the Cisco Connected Life User Experience (CLUE) Index Update

As the winter solstice (December 21) approaches for the northern hemisphere, many of us are experiencing shorter days and longer nights (and that familiar chill in the air). But even in these conditions, anticipation is growing and a sense of excitement is upon us.  Sure, some are focused on the Holiday season…but for us at SP360, we’re focused on…wait for it…wait for it…advanced services adoption.

Today, we’re pleased to release an update to another one of our research platforms – the Cisco Connected Life User Experience (or CLUE) Index. Focused on regional adoption of various network based services through a user’s Connected Life – At Home, At Work, or On the Move, the CLUE Index is an unweighted index, similar to a market capitalization stock index. In our methodology, services with the highest adoption relative to the addressable market have the highest values in the individual category indexes.   This shows us how fast services are growing relative to one another within a region or category, as well as  provides a comparative summary of how global regions rank relative to each other.

Cisco Connected Life User Experience

Last March, we established the baseline CLUE Index value (100 index points) for this research project (based on calendar year 2008 service adoption data from various independent analyst sources). The current report represents the first update to our baseline findings and describes the regional-level and service-level changes based on calendar year 2009 service adoption data. Here’s a summary of some of our top-level findings:

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Cisco and BMC Alliance Announcement – Service Orchestration and Network Containers

Today Cisco announced a new strategic alliance with BMC and introduced the Integrated Cloud Delivery Platform (ICDP) solution to give customers an option to easily deploy end-to-end Cloud services on a large-scale multi-tenant Cloud computing infrastructure that spans networks, computing systems, storage, and applications. ICDP increases the scalability of Cloud computing environments for our Service Provider and other large-scale multi-tenant clouds by automating and simplifying the service orchestration and management of their service portfolios.

This alliance extends Cisco’s ecosystem of partners in the Cloud space. This move builds on the relationship between our two companies: Cisco and BMC have worked together on 140+ customer engagements, combining BMC’s BladeLogic and our Unified Computing System (UCS). ICDP integrates BMC’s Cloud Lifecycle Management (CLM) solution with Cisco’s Unified Service Delivery (USD) solution to simplify the management of delivering high-scale, secure, and multi-tenant Cloud services. Combining CLM with Unified Service Delivery infrastructure allows the support for end-to-end lifecycle management of Cloud computing-related initiatives with seamless integration of the planning, provisioning, assurance, compliance, and governance while increasing the quality of ongoing Cloud service delivery.

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Upcoming Cloud Computing Survey Results Webinar

Heads up, I’ll be moderating a webinar session this Tuesday, Dec. 7, at 8:00 a.m. PST where we will go over findings that Cisco’s IBSG consulting group completed recently on cloud computing. The results of the survey are useful for both Service Provider and Enterprise organizations. In the webinar, we’ll have distinguished speakers from Savvis (Brian Klingbeil, General Manager, Hosting), Valogix (Mark Yablonski, CTO), and Cisco (Scott Puopolo, VP, Cisco Internet Business Solutions Group). Based on feedback from IT decision makers, we will have an honest discussion on growing trends, concerns and implications of cloud computing, and the next steps towards success.

The main points on our agenda include:

  • Why cloud computing is a compelling economic proposition for enterprises
  • How quickly enterprises plan to migrate to the cloud
  • Which applications will be first in line for cloud migration – and why
  • Who will be the most trusted providers of cloud services
  • What opportunities cloud computing opens for service providers

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Making TelePresence Even Better: Announcing the First Commercially Available Interexchange Cisco TelePresence Service

Metcalfe’s law, an iconic principle in networking, states that the value of a network is proportional by the square number of endpoints it has. In essence, the more people on the network, the more valuable it is. In part, that’s what made the PSTN so valuable…everybody used to have a fixed phone…and it’s what makes the mobile network so valuable now since every one over 14 definitely has one with many households sporting multiple ones…and it’s the driving force behind the momentum of Cisco TelePresence.

Today AT&T and BT announced the first commercially available interexchange Cisco TelePresence service . With Inter-Provider Cisco TelePresence, it’s possible to connect disparate enterprise networks over different SP networks for real-time Cisco TelePresence meetings in a highly secure, consistent, and transparent manner.

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