Tuesday, October 5, 2010

Cloud Services Growth - sometimes predictions can come true

In the IT world we are desensitized to predictions which do not quite come true. Ten years ago it was PKI (anyone get a digital certificate from their local post office lately? Through not). In the case of SOA the growth really came with the second wave of REST, not with their first wave of heavyweight SOAP/WSDL/UDDI services. But in the case of Cloud services, the growth has been much more immediate.

Take the prediction by Ben Pring of Gartner in June that "We are seeing an acceleration of adoption of cloud computing and cloud services among enterprises and an explosion of supply-side activity as technology providers maneuver to exploit the growing commercial opportunity". Pring also notes the "serious security issues" (also noted by IDC here) related to Cloud Computing. However, vendors such as Vordel are addressing these with broker technology.

How big is this market? In the same CIO Update article, Larry Barrett quotes that Gartner is "projecting worldwide cloud services revenue will soar to more than $68.3 billion this year, a
16.6 percent improvement from an already-robust 2009 and a harbinger of things to come".

We are certainly seeing this here at Vordel. Today we announced revenue results for Q3 2010. This quarter has proved to be the most successful in the history of the company with a 90% increase on the same period last year. The year-on-year growth to date is over 50%. We're seeing the Cloud effects first hand: With customers using Vordel to connect to Google Apps in the Cloud and to expose Platform-as-a-Service services using Amazon Web Services authentication. In some cases the driver is performance (Vordel can issue, sign, and validate SAML tokens significantly faster than toolkit-based alternatives), in some cases it is security, but in all cases it is simply the connectivity: to connect systems to the Cloud. Connecting to the Cloud.

It is good to see predictions coming true :-)