Gartner: Regions Take Varied Paths To Cloud Adoption

Depending upon where they are located in the world, enterprises are buying and using data centre-related and cloud-based services very differently, researcher Gartner revealed in a 26 March report.

While there’s no question that relatively new services such as cloud computing infrastructure as a service (IaaS), platform as a service (PaaS) and infrastructure utility services (IUS) are trending up everywhere, various regions have their preferences about which ones they are using first.

Tipping point

“Many events have affected the DCS market in the past two years, with symptoms of a traditional market at the tipping point from maturity to reinvention or decline,” said Claudio Da Rold, vice president and distinguished analyst at Gartner. “Buyers in enterprise organisations must recognise the common usage patterns and differentiated levels of adoption of hosting vs. data centre outsourcing, as well as the different business and market drivers toward new products.”

In North America, hosting (42 percent) and cloud IaaS have achieved the highest level of client adoption, while the markets in the rest of the world are dominated by data centre outsourcing (80 percent), Gartner reported.

Other drivers across the global markets are economic growth and the buying trends of small or midsise businesses. Combined, these factors cause the DCS market to evolve at a different rate toward the new delivery models in the macro geographies, Gartner said.

Regional differences

North America: The data centre outsourcing (DCO) market in North America amounted to $33 billion (£21bn) in 2011, while web hosting and co-location combined for $23 billion. This market has the highest cloud adoption rate, with 60 percent of public cloud services worldwide, and the US hosting market has continued to accelerate the pace of innovation and transformation.

The North American DCO/IUS market has grown both organically and through new offerings, such as storage as a service. Traditional DCO services growth continues at a slower pace than previously, due to IUS solutions and lower-price IT outsourcing (ITO) industrialised models, Gartner said.

Europe: The DCO market in Europe totaled $38 billion in 2011, while web hosting and co-location was way below North America, at $8.6 billion. Public cloud services adoption was at 23 percent.

The European market used to be fragmented by relatively small country markets, but since 2005, some of the larger outsourcers have implemented low-cost remote control centres. Later, they developed IUS offerings to benefit infrastructure utility for SAP – particularly since 2008 and during the subsequent economic crisis, Gartner said.

Asia/Pacific: There’s not nearly as much activity in these markets as in North American and Europe. DCS in the region totaled $10 billion in 2011, while web hosting and co-location were $2.5 billion, and public cloud services penetration was 9.8 percent in Japan and 3 percent elsewhere.

Additional information is available in the Gartner report “Regional Differences in the Move Toward the Cloud, 2012“.

Are you a patent expert? Take our quiz!

Chris Preimesberger

Editor of eWEEK and repository of knowledge on storage, amongst other things

View Comments

  • The question of whether or not to enter the cloud seems to be over - the answer is yes, you should. From what I'm hearing security in the cloud is no worse than anywhere else so we should all stop worrying about it and virtualization has cut pretty much all the costs it can so the cloud is the next place to make savings. With that settled it seems that the different types of cloud which Chris refers to are the final options for decisions to be made on http://ow.ly/9Ul80

Recent Posts

Apple, Google Mobile Ecosystems Should Be Investigated, CMA Told

CMA receives 'provisional recommendation' from independent inquiry that Apple,Google mobile ecosystem needs investigation

7 hours ago

Australia Rejects Elon Musk Claim About Social Media Ban For Under-16s

Government minister flatly rejects Elon Musk's “unsurprising” allegation that Australian government seeks control of Internet…

10 hours ago

Northvolt Files For Bankruptcy Protection In US

Northvolt files for Chapter 11 bankruptcy protection in the United States, and CEO and co-founder…

11 hours ago

UK’s CMA Readies Cloud Sector “Behavioural” Remedies – Report

Targetting AWS, Microsoft? British competition regulator soon to announce “behavioural” remedies for cloud sector

1 day ago

Former Policy Boss At X, Nick Pickles, Joins Sam Altman Venture

Move to Elon Musk rival. Former senior executive at X joins Sam Altman's venture formerly…

1 day ago

Bitcoin Rises Above $96,000 Amid Trump Optimism

Bitcoin price rises towards $100,000, amid investor optimism of friendlier US regulatory landscape under Donald…

1 day ago