Analyst Firms Bullish on Cloud Spending

By Robert Gelber

July 10, 2012

Gartner released a report yesterday, which covered global IT spending. The research firm tracked growth over the last year and made a number of prognostications regarding future investments. Most notably for cloud watchers, the report anticipates a significant increase in worldwide public cloud spending: from $91 billion in 2011 to $109 billion in 2012 – a 20% increase. Furthermore, the report predicts that enterprise cloud spending will hit $207 billion in 2016.

Richard Gordon, research vice president at the firm, explained that all major forms of cloud services have become increasingly popular with enterprise:

Business process as a service (BPaaS) still accounts for the vast majority of cloud spending by enterprises, but other areas such as platform as a service (PaaS), software as a service (SaaS) and infrastructure as a service (IaaS) are growing faster.

Gartner is not the only firm foretelling exponential growth. Last year, a report from Forrester Research, forecasted a $241 billion cloud services market in 2020. They also expect certain areas to crest in the interim. For example, researchers say that Infrastructure-as-a-Service (IaaS) spending will peak at $5.9 billion in 2014. At that time, multiple forces including commoditization, falling margins and pricing pressure will stunt further growth.

Similar claims were made about Software-as-a-Service (SaaS), which was on pace for $21.2 billion of revenue in 2011. Increased enterprise adoption created predictions of a $92.8 billion SaaS market in the year 2016, at which point analysts believe the services will reach a saturation point.

Despite increased popularity in enterprise markets, these services have not been as popular in the highest echelons of computing. An Intersect360 report from 2011 highlighting HPC trends displayed a relatively minor impact from cloud-based offerings. Specifically, the document said that public cloud services account for just 3 percent of HPC spending. The most data-intensive applications will require custom-tuned, big iron systems; however, there are still many uses cases for HPC cloud. Cycle Computing made news when it spun up a 50,000-core cluster on Amazon EC2, and earlier this month, Google used 600,000 cores to run a genomics application on its cloud infrastructure.

Advancements in technology, in addition to economic realities, should continue to boost cloud adoption in all areas. As for global IT spending, Gartner says it will grow to reach $3.6 trillion this year, up 3% from $3.5 trillion last year. Based on these figures, public cloud services ($109 billion) make up 3 percent of total IT spend. It must be stressed that this figure only takes into account public cloud; an expanded cloud definition would comprise an even greater percentage of overall IT market share.

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

Fine-Tuning Severe Hail Forecasting with Machine Learning

July 20, 2017

Depending on whether you’ve been caught outside during a severe hail storm, the sight of greenish tinted clouds on the horizon may cause serious knots in the pit of your stomach, or at least give you pause. There’s g Read more…

By Sean Thielen

Trinity Supercomputer’s Haswell and KNL Partitions Are Merged

July 19, 2017

Trinity supercomputer’s two partitions – one based on Intel Xeon Haswell processors and the other on Xeon Phi Knights Landing – have been fully integrated are now available for use on classified work in the Nationa Read more…

By HPCwire Staff

Fujitsu Continues HPC, AI Push

July 19, 2017

Summer is well under way, but the so-called summertime slowdown, linked with hot temperatures and longer vacations, does not seem to have impacted Fujitsu's output. The Japanese multinational has made a raft of HPC and A Read more…

By Tiffany Trader

Researchers Use DNA to Store and Retrieve Digital Movie

July 18, 2017

From abacus to pencil and paper to semiconductor chips, the technology of computing has always been an ever-changing target. The human brain is probably the computer we use most (hopefully) and understand least. This mon Read more…

By John Russell

HPE Extreme Performance Solutions

HPE Servers Deliver High Performance Remote Visualization

Whether generating seismic simulations, locating new productive oil reservoirs, or constructing complex models of the earth’s subsurface, energy, oil, and gas (EO&G) is a highly data-driven industry. Read more…

The Exascale FY18 Budget – The Next Step

July 17, 2017

On July 12, 2017, the U.S. federal budget for its Exascale Computing Initiative (ECI) took its next step forward. On that day, the full Appropriations Committee of the House of Representatives voted to accept the recomme Read more…

By Alex R. Larzelere

Summer Reading: IEEE Spectrum’s Chip Hall of Fame

July 17, 2017

Take a trip down memory lane – the Mostek MK4096 4-kilobit DRAM, for instance. Perhaps processors are more to your liking. Remember the Sh-Boom processor (1988), created by Russell Fish and Chuck Moore, and named after Read more…

By John Russell

Women in HPC Luncheon Shines Light on Female-Friendly Hiring Practices

July 13, 2017

The second annual Women in HPC luncheon was held on June 20, 2017, during the International Supercomputing Conference in Frankfurt, Germany. The luncheon provides participants the opportunity to network with industry lea Read more…

By Tiffany Trader

Satellite Advances, NSF Computation Power Rapid Mapping of Earth’s Surface

July 13, 2017

New satellite technologies have completely changed the game in mapping and geographical data gathering, reducing costs and placing a new emphasis on time series and timeliness in general, according to Paul Morin, directo Read more…

By Ken Chiacchia and Tiffany Jolley

Fine-Tuning Severe Hail Forecasting with Machine Learning

July 20, 2017

Depending on whether you’ve been caught outside during a severe hail storm, the sight of greenish tinted clouds on the horizon may cause serious knots in the Read more…

By Sean Thielen

Fujitsu Continues HPC, AI Push

July 19, 2017

Summer is well under way, but the so-called summertime slowdown, linked with hot temperatures and longer vacations, does not seem to have impacted Fujitsu's out Read more…

By Tiffany Trader

Researchers Use DNA to Store and Retrieve Digital Movie

July 18, 2017

From abacus to pencil and paper to semiconductor chips, the technology of computing has always been an ever-changing target. The human brain is probably the com Read more…

By John Russell

The Exascale FY18 Budget – The Next Step

July 17, 2017

On July 12, 2017, the U.S. federal budget for its Exascale Computing Initiative (ECI) took its next step forward. On that day, the full Appropriations Committee Read more…

By Alex R. Larzelere

Women in HPC Luncheon Shines Light on Female-Friendly Hiring Practices

July 13, 2017

The second annual Women in HPC luncheon was held on June 20, 2017, during the International Supercomputing Conference in Frankfurt, Germany. The luncheon provid Read more…

By Tiffany Trader

Satellite Advances, NSF Computation Power Rapid Mapping of Earth’s Surface

July 13, 2017

New satellite technologies have completely changed the game in mapping and geographical data gathering, reducing costs and placing a new emphasis on time series Read more…

By Ken Chiacchia and Tiffany Jolley

Intel Skylake: Xeon Goes from Chip to Platform

July 13, 2017

With yesterday’s New York unveiling of the new “Skylake” Xeon Scalable processors, Intel made multiple runs at multiple competitive threats and strategic Read more…

By Doug Black

Perverse Incentives? How Economics (Mis-)shaped Academic Science

July 12, 2017

The unintended consequences of how we fund academic research—in the U.S. and elsewhere—are strangling innovation, putting universities into debt and creatin Read more…

By Ken Chiacchia, Senior Science Writer, Pittsburgh Supercomputing Center

HPC Compiler Company PathScale Seeks Life Raft

March 23, 2017

HPCwire has learned that HPC compiler company PathScale has fallen on difficult times and is asking the community for help or actively seeking a buyer for its a Read more…

By Tiffany Trader

Quantum Bits: D-Wave and VW; Google Quantum Lab; IBM Expands Access

March 21, 2017

For a technology that’s usually characterized as far off and in a distant galaxy, quantum computing has been steadily picking up steam. Just how close real-wo Read more…

By John Russell

Google Pulls Back the Covers on Its First Machine Learning Chip

April 6, 2017

This week Google released a report detailing the design and performance characteristics of the Tensor Processing Unit (TPU), its custom ASIC for the inference Read more…

By Tiffany Trader

Nvidia Responds to Google TPU Benchmarking

April 10, 2017

Nvidia highlights strengths of its newest GPU silicon in response to Google's report on the performance and energy advantages of its custom tensor processor. Read more…

By Tiffany Trader

Trump Budget Targets NIH, DOE, and EPA; No Mention of NSF

March 16, 2017

President Trump’s proposed U.S. fiscal 2018 budget issued today sharply cuts science spending while bolstering military spending as he promised during the cam Read more…

By John Russell

CPU-based Visualization Positions for Exascale Supercomputing

March 16, 2017

In this contributed perspective piece, Intel’s Jim Jeffers makes the case that CPU-based visualization is now widely adopted and as such is no longer a contrarian view, but is rather an exascale requirement. Read more…

By Jim Jeffers, Principal Engineer and Engineering Leader, Intel

Nvidia’s Mammoth Volta GPU Aims High for AI, HPC

May 10, 2017

At Nvidia's GPU Technology Conference (GTC17) in San Jose, Calif., this morning, CEO Jensen Huang announced the company's much-anticipated Volta architecture a Read more…

By Tiffany Trader

Facebook Open Sources Caffe2; Nvidia, Intel Rush to Optimize

April 18, 2017

From its F8 developer conference in San Jose, Calif., today, Facebook announced Caffe2, a new open-source, cross-platform framework for deep learning. Caffe2 is the successor to Caffe, the deep learning framework developed by Berkeley AI Research and community contributors. Read more…

By Tiffany Trader

Leading Solution Providers

How ‘Knights Mill’ Gets Its Deep Learning Flops

June 22, 2017

Intel, the subject of much speculation regarding the delayed, rewritten or potentially canceled “Aurora” contract (the Argonne Lab part of the CORAL “ Read more…

By Tiffany Trader

Reinders: “AVX-512 May Be a Hidden Gem” in Intel Xeon Scalable Processors

June 29, 2017

Imagine if we could use vector processing on something other than just floating point problems.  Today, GPUs and CPUs work tirelessly to accelerate algorithms Read more…

By James Reinders

MIT Mathematician Spins Up 220,000-Core Google Compute Cluster

April 21, 2017

On Thursday, Google announced that MIT math professor and computational number theorist Andrew V. Sutherland had set a record for the largest Google Compute Engine (GCE) job. Sutherland ran the massive mathematics workload on 220,000 GCE cores using preemptible virtual machine instances. Read more…

By Tiffany Trader

Google Debuts TPU v2 and will Add to Google Cloud

May 25, 2017

Not long after stirring attention in the deep learning/AI community by revealing the details of its Tensor Processing Unit (TPU), Google last week announced the Read more…

By John Russell

Russian Researchers Claim First Quantum-Safe Blockchain

May 25, 2017

The Russian Quantum Center today announced it has overcome the threat of quantum cryptography by creating the first quantum-safe blockchain, securing cryptocurrencies like Bitcoin, along with classified government communications and other sensitive digital transfers. Read more…

By Doug Black

Groq This: New AI Chips to Give GPUs a Run for Deep Learning Money

April 24, 2017

CPUs and GPUs, move over. Thanks to recent revelations surrounding Google’s new Tensor Processing Unit (TPU), the computing world appears to be on the cusp of Read more…

By Alex Woodie

Top500 Results: Latest List Trends and What’s in Store

June 19, 2017

Greetings from Frankfurt and the 2017 International Supercomputing Conference where the latest Top500 list has just been revealed. Although there were no major Read more…

By Tiffany Trader

Six Exascale PathForward Vendors Selected; DoE Providing $258M

June 15, 2017

The much-anticipated PathForward awards for hardware R&D in support of the Exascale Computing Project were announced today with six vendors selected – AMD Read more…

By John Russell

  • arrow
  • Click Here for More Headlines
  • arrow
Share This