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Cloud Forecast: Hybrid Clouds Up Ahead

Cloud Forecast: Hybrid Clouds Up Ahead
Looking ahead at the future of cloud computing / Credit: Cloud image via Shutterstock

Six months ago, it was all about private and public clouds. Today, industry analysts say hybrid clouds  which offer the best of both worlds — is the tomorrow of cloud computing.

Egenera, a cloud management and data center infrastructure provider, recently held a webinar, Future of Cloud — Mid-Year Review 2013, which revealed that the future of cloud computing is in hybrid clouds, in an industry spearheaded by small and medium businesses (SMBs).

[Cloud Computing: A Small Business Guide]

The webinar, now available on their website, covered the latest cloud computing trends and analyzed available data, inhibitors and expectations to forecast where the cloud is going.

Based on data, almost all surveys point to the growth of hybrid clouds, said Scott Geng, chief technology officer and executive vice president of engineering at Egenera, who hosted the webinar.

"As IT budgets continue to shrink and capital resources remain scarce, hybrid cloud is becoming a more popular option for augmenting IT capacity and enabling business continuity solutions," Geng said.

Security and reliability concerns will lead businesses to keep many applications in a private cloud, while testing, development and other non-critical apps will go in a public cloud, Geng said.

In terms of the user demographic, SMBs have driven cloud computing adoption, as it eliminates the need for large capital investments and reduces the need for IT resources, Geng said. Today, more than 60 percent of SMBs use cloud services. SMB spending on cloud solutions is projected to grow 20 percent in the next five years, and the SMB cloud services market is expected to reach more than $200 million by 2015.

In comparison, large enterprises have lagged in cloud adoption due to security concerns, corporate standards, and the fact that large organizations have already significantly invested in IT infrastructures. However, user demand, mobile computing, the consumerization of IT and Big Data will also contribute to cloud computing adoption by large enterprises; security concerns are also lessening with market maturity.

In fact, half of federal agencies have adopted some form of cloud computing and will continue to invest in the service, Geng said. By 2014, government spending is expected to reach $1.7 billion for private clouds and more than $118 million on public clouds.

Overall, security and management complexity are the two greatest inhibitors to cloud computing. Nonetheless, the industry is rapidly investing in the advancement of cloud products to solve these problems, Geng said.

Originally published on BusinessNewsDaily.

Sara Angeles

Sara is a Los Angeles-based tech writer for Business.com, Business News Daily and Tom's IT Pro. A graduate of the University of California, Irvine, she has worked as a freelance writer and copywriter for tech publications, lifestyle brands and nonprofit organizations in the Southern California area and throughout the U.S. Sara joined the Purch team in 2013.