CloudWATCH Cloud Market Roadmap: how the cloud computing market will evolve in next 5 years
CloudWATCH2 delivers its final roadmap on understanding the economic, financial and market dynamics shaping the cloud computing market in Europe, and globally, over the next 5 years.
The "Roadmap to a cloud market structure encouraging transparent cloud pricing Final Version" charts how the cloud computing market has changed in the last 14 months.
With a foreword from Pierre Chastanet, Acting Head of the European Commission's Unit E2 Cloud & Sofwtare Services, this document makes recommendations to key stakeholders for actions to mitigate risks of market failure, and deliver a stable cloud computing market.
We are pleased to report in this Final Version that many of the risks we identified in the Preliminary Version are reducing, and others are being mitigated with sensible strategies. The most promising of all is the maturity of the support offered to the ecosystem of cloud intermediaries, i.e. cloud resellers and managed service providers, that provide diverse and competitive ways for cloud buyers to procure cloud services based on the dominant cloud providers as well as aggregating the buying power of numerous, diverse cloud users and using that to protect their interests
The structure of the Infrastructure-as-a-Service base layer of the cloud market is maturing rapidly, and in general this is leading at least to rational pricing, if not full transparency in pricing, as a result of inherent difficulties in making like-for-like technology migrations or even just comparisons. Again, specialist intermediators acting as “cloud suppliers” have the motivation and the expertise to analyse and compare the multitude of wholesale IaaS product offerings in support of their end-user customers.
There is now a market that has evolved, without significant regulatory intervention, to look not dissimilar to sophisticated, regulated markets such as electricity.