The content in this blog is outdated and we cannot reliably say it is still accurate with the speed in which the cloud industry moves. But don’t worry—below are more recent, up-to-date blogs.
by Dan Phillips
Several months ago I wrote an article on the emergence of a new market focused on cloud management – The Cloud Management Market Emerges. The blog discussed the rapidly increasing adoption of public cloud, infrastructure-as-a-service (IaaS) by enterprise class organizations and the challenges they would face in the absence of cloud centric tools.
Enterprise companies have long relied on the robust services and tools offered by traditional IT service management (ITSM) suites. But cloud computing introduces new variables like; self-service provisioning of services and assets, on-demand elasticity, and highly variable, usage-based pricing. What is now evident is that, in order to effectively manage their cloud environment, traditional ITSM tools just won’t work. The cloud requires a new breed and suite of services.
There’s a new ecosystem developing of IT management tools that is focused on cloud management. This market of cloud centric vendors continues to expand as opportunities emerge in this highly disruptive environment. We now see market demand across the full suite of traditional ITSM services: configuration management, performance management, cost management, event management, security management, and incident/change management. What has also become clear is that companies prefer to create their own ITSM for the cloud suites. They want open and extensible API-based integration with best-of-breed point solutions versus monolithic platforms from one vendor.
When I wrote my earlier blog, CloudHealth Technologies and other vendors in this cloud management ecosystem were on a very nice trajectory, riding Amazon Web Services (AWS) growth, along with that of IBM Softlayer, Google Compute Engine (GCE), and Microsoft Azure. The majority of customers moving to and using the cloud at scale were fast growing tech companies. All indications pointed to a market still in the early adoption stage.
But things have changed over the past six months. Our business has experienced several strong indicators that the market has significantly accelerated and entered the early majority adoption stage:
In addition to what we have witnessed, we see the market continue to evolve and expand with venture capital backed newcomers and funding. The following illustration highlights what this ITSM cloud market looks like today.
Growth, acceleration, and market potential are further emphasized by the venture capital pouring into these companies and the broader ecosystem. You can see from the following tables there has been significant funding for vendors in the cloud management market across the ITSM suite:
Fault & Performance Management:
Cost & Usage Management:
The traditional enterprise is now moving their IT infrastructure to the cloud at scale. The market is poised to take off. We’re moving at warp speed from the early adopter, technology innovator to the traditional mainstream enterprise. As big as the market has been so far, (AWS at $6 billion in 2014?), we’ve only seen the tip of the iceberg - roughly 5% of the overall IT infrastructure market. The remaining 95% of the market is now ready and open for business.
For those of us that remember the 90’s, when the world moved from mainframe to network based infrastructure, get ready for world disruption #2. And hold on tight for an incredible next 5 years.