Seven Reasons to Feel Good About Cloud Services in 2016

2016 could provide many growth opportunities for cloud services providers

Dan Kobialka

January 13, 2016

2 Min Read
Seven Reasons to Feel Good About Cloud Services in 2016
(Photo by Sean Gallup/Getty Images)

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By Talkin' Cloud

2016 could provide many growth opportunities for cloud services providers. Here's why:

1. Total Cloud Infrastructure Spending Could Grow

International Data Corp predicted total spending on cloud IT infrastructure (server, storage and Ethernet switch, excluding double counting between server and storage) would grow by 24.1 percent to $32.6 billion in 2015. In addition, IDC noted it expected cloud IT infrastructure spending to expand at a compound annual growth rate (CAGR) of 15.1 percent through 2019.

Read more: The Billions in Data Center Spending Behind Cloud Revenue Growth

2. Cloud Security Will Remain a Top Priority

Cloud application security provider Elastica recently found that the cost of exposed data in software-as-a-service (SaaS) may total up to $13.85 million per incident. However, CSPs can resolve security issues for businesses, ensuring these companies can protect their sensitive data that is stored in the cloud at all times.

3. Cloud Storage Is Expected to Become More Widespread

A recent Soliant Consulting study revealed 36 percent of all data could be stored in the cloud by the end of this year. CSPs, meanwhile, could capitalize on the rising demand for cloud storage services by adding these offerings to their portfolios.

Read more: Seven Biggest Cloud Outages of 2015

Cloud app containerization could become increasingly popular in 2016 and beyond, thus providing many new growth opportunities for CSPs. In fact, a recent StackEngine study indicated hybrid cloud was one of the top motivators for using Docker containers, and 70 percent of respondents said they are already using Docker or evaluating it within their organizations.

5. There Is Rising Demand for Cloud-Based Video Conferencing Services

Entering the cloud-based video conferencing services market could deliver long-lasting benefits for CSPs. A recent Global Industry Analysts (GIA) report indicated the cloud-based video conferencing services market is expected to grow and could be worth $2.9 billion by 2020.

6. Many SMBs Want Cloud Solutions

Many small and medium-sized businesses (SMBs) continue to explore ways to utilize cloud solutions, which could give CSPs an opportunity to support these companies. Plus, a recent study from Carbonite (CARB) and market IDC indicated SMBs are increasingly turning to cloud or hybrid solutions to achieve business continuity, which could drive growth in the backup-as-a-service (BaaS) and recovery-as-a-service (RaaS) segments.

7. Cloud Opportunities Extend Beyond Infrastructure

Today's CSPs can offer customers support beyond traditional hosting capabilities. A recent study from Microsoft (MSFT) and 451 Research showed nearly 70 percent of the opportunity for CSPs now centers on application hosting (email and business applications), managed services (backup and disaster recovery) and security services (threat management).

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