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Analyze the IaaS public cloud market structure and threats
According to Gartner's 2017 research, Amazon Web Services (AWS) and Microsoft Azure dominate the public cloud market, with AWS holding a significant 47.1% share and Microsoft at 10%, followed by Google Cloud at 3.95% and IBM SoftLayer at 2.77%. AWS has consistently led the market, with its share rising from 44.2% in 2016 to 47.1% in 2017. In the first quarter of 2017, AWS reported $3.66 billion in revenue, marking a 42% year-over-year increase. Gartner highlighted that AWS is the most frequently chosen provider, often adopted strategically across enterprises.
However, AWS is not without criticism. Its service usage thresholds and complex pricing model have drawn some complaints. Microsoft Azure, though trailing behind, showed strong growth, increasing from 7.1% in 2016 to 10% in 2017. In the fourth quarter of 2017, Azure revenue surged over 97% compared to the same period in 2016, outpacing AWS's growth rate. Despite this, Azure still lags in areas like user experience, support, documentation, and training, according to Gartner. Google Cloud, while far behind AWS and Azure, is seen as a viable option for specific use cases.
Gartner also noted Google’s focus on portability and innovation, particularly in data analytics and ecosystem development. IBM SoftLayer, despite being acquired in 2013, hasn’t seen much improvement, leading to an inconsistent cloud experience. Alibaba Cloud, though less prominent globally, is a major player in China, showing great potential in the IaaS market.
Looking ahead, the IaaS market is expected to grow rapidly. Gartner predicted a 38.6% increase in 2017, reaching $34.6 billion. By 2021, it could hit $71.55 billion, growing at a 29.7% CAGR. This growth could eventually surpass SaaS, which is expected to reach $75.73 billion by 2021. PaaS, although smaller, is projected to grow at 23.5% in 2017, reaching $8.85 billion.
Many businesses are shifting their application workloads to the cloud. A CSA survey showed that in 2016, 60.9% of applications were still in enterprise data centers, but by 2017, this dropped to 46.2%. The shift is driven by new cloud-native applications and planned migrations of existing ones. AWS leads with 41.5% of public cloud workloads, followed by Azure at 29.4%, Google Cloud at 3%, and others making up the remaining 20.7%.
Large enterprises tend to run more customized applications, with companies having over 50,000 employees deploying an average of 788 apps, compared to just 22 for those with fewer than 1,000 employees.
Security remains a key concern for cloud adoption. While 62.9% of IT professionals believe public clouds are as secure as on-premise data centers, sensitive data uploads and third-party breaches are still top threats. Organizations must follow best practices and leverage solutions like CASB to mitigate risks.
Overall, the IaaS market is evolving quickly, with AWS maintaining a strong lead, while other players like Azure and Google continue to gain traction. As cloud adoption grows, so does the need for robust security and better user experiences.