Welcome!

@CloudExpo Authors: Pat Romanski, Elizabeth White, Yeshim Deniz, Liz McMillan, Aruna Ravichandran

Related Topics: @CloudExpo

@CloudExpo: Blog Feed Post

Gartner’s Cloud Numbers Don’t Add Up (Again!)

Their numbers from last year were disputed by me

Once again, Gartner has publicized entirely useless and (worse) misleading numbers on the global market for cloud computing services.  Their numbers from last year were disputed by me (here, and here) and several others, yet they kept to their fataly flawed methodology for the 2010 update.  This is despite at least one of the analysts who’s name appears on the report privately agreeing with me that last years numbers were “rubbish” and that they were pressured into using this methodology.

The press release cited above indicates that “cloud services revenue is forecast to reach $68.3 billion in 2010…”  My primary question is “Hey Gartner, what color is the sky in your world?”  Or perhaps it should be “What have you been smoking?”

I should point out at this point that someone totally unrelated to this blog or my job recently handed me a copy of the complete Dataquest report on which the press release was based.

Here is a distribution of the 2010 numbers from there report:

Soure: Gartner (May 2010)

Breaking It Down – Google AdWords Ain’t Cloud!!

As was the case last time, the most ludicrous inclusion in these numbers is what they include under the heading “Business Process Services.”  Out of $68.3 billion total cloud services forecasted for 2010, Business Process Services is $57.9 billion, or 85%.  The biggest chunk of this is $32 billion in online advertising.  That’s right, Gartner thinks that the billions that advertisers spend with Google, Yahoo, and others for advertising their products and services should be counted as cloud spending.

Okay, so I’m marketing mortgages using AdWords, and the money coming out of my marketing budget counts as cloud?  Really?  Is it just me, or is that totally insane?!?

Other things that count as cloud in the “Business Process Services” bucket?

  • Cloud-based E-Commerce: this is a bit of a toss-up.  The fees that eBay collects from merchants and the Amazon marketplace fees are included here.  Is that really a cloud service, or just distribution???  I’d say it should be out.  Though if you want to put it anywhere, count it as SaaS revenue.
  • Payments: this includes the fees that PayPal charges, most for merchant card processing.  It ain’t cloud!
  • HR Services: the fees that ADP charges your company to process your checks and provide online access to your payroll records??  Yup, it’s cloud according to Gartner.
  • Supply Management: they are not clear about this, but I imagine fees charged to manufacturers for inclusion in supplier search engines (e.g. Alibaba) might count here.
  • Demand Management: could be advertising analytics apps and programs for managing online search spending, but again not clear
  • Finance, Accounting, Admin: again, they don’t provide good examples here.  This could include NetSuite, but wouldn’t that be in SaaS?
  • Operations: no idea, but most business operations I can think of would not be “cloud.

Frankly, I wish I knew what was going on over there (Gartner), but to me this report is nonsensical that I just can’t wrap my head around it.

The CloudBzz Revised Cloud Market Forecast

Using the Gartner numbers as a base, and stripping out the Business Process Services category in its entirety, I come up with the following numbers.

The CloudBzz revised worldwide market for cloud services in 2010 is forecasted at $10.5 billion, growing to $34.1 billion in 2014.

That’s a much more believable set of numbers, any way you want to look at it.

Source: Gartner (2010) revised by CloudBzz

Now, these are numbers I can believe in.  The vast bulk of cloud today is in the SaaS market.  Even out to 2014, more than 60% of “cloud” revenue is SaaS.

Source: Gartner (2010) revised by CloudBzz

Interestingly, by 2014 the PaaS market is only 3% of the total cloud market, according to Gartner.  Not sure that I believe that, but I don’t have any better numbers at this time.

Why Gartner Should Fix This…

Everybody likes big numbers, especially when they contribute to the “hype cycle” we all like to make fun of.  $10.5 billion in 2010 is actually a pretty big number.  $34.1 in 2014 is big too.  I just wish Gartner would come to their senses and stop adding to the confusion about what is a cloud service, though my expectation is that they will continue to propogate this farce as long as their customers are buying it. IaaS, PaaS, and (some would argue) SaaS are all that should be counted in anybody’s cloud forecast.

p.s. I really like the Gartner people that I’ve met who cover cloud.  I just can’t believe that they consider Google AdWords as part of this exciting and fast moving IT market.

Follow me on twitter for more cloud conversations: http://twitter.com/cloudbzz

Notice: This article was originally posted at http://CloudBzz.com by John Treadway.

(c) CloudBzz / John Treadway

Read the original blog entry...

More Stories By John Treadway

John Treadway is a Vice President at Cloud Technology Partners and has over 20 years of experience delivering technology and business solutions to domestic and global enterprises across multiple industries and sectors. As a senior enterprise technology and services executive, he has a successful track record of leading strategic cloud computing and data center initiatives. John is responsible for technology IP at Cloud Technology Partners, and is actively involved with client projects and strategic alliances. John is also an active blogger in the cloud computing space and authors the CloudBzz blog. Sites/Blogs CloudBzz

@CloudExpo Stories
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, will provide a fun and simple way to introduce Machine Leaning to anyone and everyone. Together we will solve a machine learning problem and find an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intellige...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
Though cloud is the future of enterprise computing, a smooth transition of legacy applications and systems is critical for seamless business operations. IT professionals are eager to start leveraging the cost, scale and other benefits of cloud, but with massive investments already in place in existing infrastructure and a number of compliance and resource hurdles, it can be challenging to move to a cloud-based infrastructure.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, will discuss how given the magnitude of today's applicati...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
Amazon is pursuing new markets and disrupting industries at an incredible pace. Almost every industry seems to be in its crosshairs. Companies and industries that once thought they were safe are now worried about being “Amazoned.”. The new watch word should be “Be afraid. Be very afraid.” In his session 21st Cloud Expo, Chris Kocher, a co-founder of Grey Heron, will address questions such as: What new areas is Amazon disrupting? How are they doing this? Where are they likely to go? What are th...
SYS-CON Events announced today that SkyScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SkyScale is a world-class provider of cloud-based, ultra-fast multi-GPU hardware platforms for lease to customers desiring the fastest performance available as a service anywhere in the world. SkyScale builds, configures, and manages dedicated systems strategically located in maximum-security...
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant th...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, will go over the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, applicatio...
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
Microsoft Azure Container Services can be used for container deployment in a variety of ways including support for Orchestrators like Kubernetes, Docker Swarm and Mesos. However, the abstraction for app development that support application self-healing, scaling and so on may not be at the right level. Helm and Draft makes this a lot easier. In this primarily demo-driven session at @DevOpsSummit at 21st Cloud Expo, Raghavan "Rags" Srinivas, a Cloud Solutions Architect/Evangelist at Microsoft, wi...
Containers are rapidly finding their way into enterprise data centers, but change is difficult. How do enterprises transform their architecture with technologies like containers without losing the reliable components of their current solutions? In his session at @DevOpsSummit at 21st Cloud Expo, Tony Campbell, Director, Educational Services at CoreOS, will explore the challenges organizations are facing today as they move to containers and go over how Kubernetes applications can deploy with lega...