Report: IaaS market continues to expand, drop prices

The cloud market in general continues to change and grow due to several factors, but mainly because companies around the world are pursuing Infrastructure-as-a-Service offerings. Although the Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) models are also gaining momentum, studies have proven that the IaaS landscape is the one that is increasing at the fastest rate, suggesting that decision-makers are looking for more innovative and flexible IT architectures.

Constellation Research highlighted some of the trends that come hand-in-hand with the expanding IaaS environment, noting that the price for the services will continue to drop. This is primarily due to the fact that the growing demand for IaaS is encouraging more vendors to enter the market, which is forcing providers to lower their costs in an effort to remain competitive. Analysts asserted that this occurrence will carry into 2014 and beyond.

The report also revealed that cloud partnering and acquisitions will become more frequent in the coming years as the IaaS market expands and continues to attract more customers and vendors.

"It's important for cloud customers not only to understand the fundamental trends in the IaaS market but also to re-evaluate and formulate their IaaS strategy going forward," said Holger Mueller, vice president and principal analyst at Constellation Research.

Building an IaaS strategy
Gartner echoed the growing IaaS landscape, noting that it is expected to increase more than 47 percent in 2013 to generate roughly $9 billion in revenue. This will make it the fastest expanding cloud segment, encouraging decision-makers to take the time to build a robust cloud infrastructure strategy if they are to fully leverage the solutions that are now at their disposal.

To begin, enterprise executives need to identify their sensitive assets and require cloud vendors to focus on protecting these resources. If confidential information or applications were to be accidentally exposed, it would be harder for companies to maintain a good reputation in today's highly competitive business world.

Additionally, executives need to consider how they intend to manage the cloud, whether the hosted infrastructure will be maintained on-site or in a third-party data center. Although both strategies offer unique opportunities, they require different approaches and tactics.

As the IaaS market evolves, progressive organizations need to build a comprehensive cloud infrastructure strategy to ensure they don't encounter unnecessary hurdles when trying to deploy the cloud.

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