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OpenStack revenues to grow at a 35% CAGR and exceed $5bn by 2020

Private cloud revenue will overtake public cloud revenue by 2019 for service providers

Ahead of the OpenStack Summit in Barcelona, 451 Research has published its latest findings about OpenStack. In the most rigorous analysis of its kind, 451 Research’s Market Monitor service expects revenue from OpenStack business models to exceed $5bn by 2020 and grow at a 35% CAGR.

To date, OpenStack-based revenue has been overwhelmingly from service providers offering multi-tenant IaaS, but the latest research indicates that private cloud revenue will exceed public cloud by 2019. Moreover, while OpenStack’s growth rate is high, overall revenue is still relatively small compared with market leaders such as VMware and AWS.
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451 Research Finds OpenStack and Commercial Private Clouds Can Beat Public Cloud on Cost – But Only at Scale

In the latest Cloud Price Index, 451 Research analyzes the costs associated with using various cloud options to determine when it becomes better value to use a self-managed private cloud instead of public or managed cloud services. Now, for the first time, cloud buyers and vendors have transparency into a complex pricing model that takes into consideration the major factors impacting total cost of ownership (TCO), including salaries and workload requirements.

451 Research finds that because of the prevalence of suitably qualified administrators, commercial private cloud offerings such as VMware and Microsoft currently offer a lower TCO when labor efficiency is below 400 virtual machines managed per engineer. But where labor efficiency is greater than this, OpenStack becomes more financially attractive. In fact, past this tipping point, all private cloud options are cheaper than both public cloud and managed private cloud options.
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According to New 451 Research Survey, 40% of Enterprises Are Using Hyperconverged Infrastructure

Adoption of converged infrastructure is changing IT environments and the personnel who manage it

Hyperconverged infrastructure represents the next evolutionary step of standard converged infrastructure. According to 451 Research's latest quarterly Voice of the Enterprise survey of IT buyers, hyperconverged infrastructure is currently in use at 40% of organizations, and 451 Research analysts expect that number to rise substantially over the next two years.

Nearly one quarter of respondents to the survey indicated that they have hyperconverged infrastructure either in a pilot phase, or in plans for future adoption. Hyperconverged infrastructure is evolving from supportive, edge infrastructure into a primary component of today's IT organizations. The latest quarterly survey indicates that 74.4% of organizations currently using hyperconverged are using the solutions in their core or central datacenters, signaling this transition.
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451 Research Analysts and Industry Experts to Tackle Business Disruption in the Age of Cloud at HCTS 2016

Aneesh Chopra, former CTO of the US, to discuss growth for entrepreneurs and innovators

451 Research will tackle the topic of business disruption in the age of cloud at the 12th annual Hosting + Cloud Transformation Summit (HCTS), Las Vegas, September 19-21. The premier forum for executives in hosting, cloud computing, datacenter and Internet infrastructure, 451 Research will host 500 senior-level IT executives, decision makers, vendors and investors at this year’s event.
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Enterprise IT executives expect 60% of workloads will run in the cloud by 2018

SaaS deployments predicted to represent nearly one-quarter of all enterprise workloads; IaaS usage poised to double

451 Research’s latest Voice of the Enterprise: Cloud Transformation survey of IT buyers indicates that 41% of all enterprise workloads are currently running in some type of public or private cloud. Bymid-2018, that number is expected to rise to 60%, indicating that a majority of enterprise workloads will run in the cloud in the near term.

Among the various types of cloud deployment models, enterprises are most likely to use on-premises private cloud and software as a service (SaaS), each accounting for 14% of all applications. Respondents indicate usage of on-premises private cloud will remain flat while SaaS is expected to grow sharply to nearly one-quarter (23%) of all enterprise workloads by mid-2018.
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