Cloud Computing as a Service

Market Monitor: Cloud Computing As-a-Service is a market-sizing and

forecasting service that offers a bottom-up market size, share and Cloud Computing as a Service
growth forecast for the rapidly evolving marketplace for cloud computing
products delivered 'as a service.' The service covers infrastructure as a
Infrastructure
service (IaaS), platform as a service (PaaS) and infrastructure software as a Service Platform as a Service Infrastructure Software as a Service

as a service (online backup, cloud archiving and IT management-as-a-

service). Market Monitor provides a five-year forecast of market size and Stand- PaaS
Integration
Platform
growth, vendor leader boards, and geographic and vertical breakouts for Alone
PaaS
from
SaaS
as a
Service
IT Management as a Service Storage as a Service

this segment. (iPaaS)

Resource
Systems and
More info: IT Service
Management
Network
Monitoring &
Utilization,
Capacity
Online
Backup &
Cloud
Archiving
Planning and Recovery
Management Billing
https://451research.com/services/market-size-composition-
growth/market-monitor-forecast

Greg Zwakman Yulitza Peraza William Fellows Carl Brooks Agatha Poon Owen Rogers Jay Lyman
VP, Market and Associate Product Manager Research Vice President Analyst Research Manager Research Director Research Manager
Competitive Intelligence Quantitative Services Service Providers Global Cloud Computing Digital Economics Cloud Management and
Containers

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Cloud Computing as a Service – Market Taxonomy

Cloud Computing as a Service

Infrastructure
as a Service Platform as a Service Infrastructure Software as a Service

Integration
Stand-Alone PaaS from Platform as a
IT Management as a Service Storage as a Service
PaaS SaaS Service
(iPaaS)

Resource
Systems and
Utilization,
IT Service Network Online Backup
Capacity Cloud Archiving
Management Monitoring & & Recovery
Planning and
Management
Billing

Cloud Computing as a Service is defined by externally delivered services –specifically, third-

party, hosted, pay-as-you-go services. We believe the cloud is, at its very essence, a service
delivery and consumption model. Thus, we have defined cloud computing not by the
technologies that enable it but, instead, by the method of delivery and consumption.

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Cloud Computing as a Service - what’s included?

Included
•On-demand or subscription-based pricing.
•External delivered services – hosting by a third party outside firewall.
• The cloud computing market •Multi-tenant infrastructure shared with other customers. Configured
is defined by externally for resource pooling, automation and orchestration.
delivered services hosted by •May include self-service, catalogs, metering and chargeback.
a third party.
• Traits of cloud computing
offerings we include in our
analysis are rapid Not Included
provisioning and self-service,
scalability and elasticity, •Traditional license, maintenance revenue.
multi-tenant architectures, •Software that is installed and consumed on premises/not hosted by
and dynamic pricing models. third party.
A full overview is available in •Channel resale or pass through revenue generated by service
the Criteria. providers reselling another company’s software or cloud services.
•Managed, professional/consulting services.

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Cloud Computing as a Service – Definitions 1/2
Infrastructure as a Service
•IaaS vendors provide raw physical capacity for cloud computing. Services at this layer may include any combination of hosting and storage. At its simplest, IaaS is about providing
pooled computing and storage services to users. IaaS vendors provide outsourced servers, OS, storage, datacenter space, network equipment, etc., via a virtualized environment paid
for by end users on an on-demand basis.
Platform as a Service
•PaaS is a cloud-enabled development platform. PaaS offerings are designed to support the entire application lifecycle (development, testing, deployment, runtime, hosting [either self-
provided or by a third party] and delivery) on a single platform. Internal developers can create custom applications on PaaS, and ISVs can create packaged applications. PaaS also
enables ISVs to sell applications on a platform, and we are also beginning to see 'cloud stores' in the internal cloud. Included in this category are vendors that provide the entire stack of
PaaS functionality, and also those that partner with a third party (i.e., a hoster) for the infrastructure component.
PaaS from SaaS
•The most commercially successful PaaS offerings are those upon which multiple applications can share resources and user information, subject to tight controls. Parasitic PaaS
arrangements – where a central SaaS application provides a critical mass of users, and other smaller applications attach themselves – have proved more popular than stand-alone
offerings. This component of the PaaS landscape is dominated by SaaS providers, such as Salesforce, whose platform offerings leverage their existing platform to build, deploy and
deliver SaaS applications, and house development environments as a proxy for regular IT infrastructure.
Stand-Alone PaaS
•The services and value proposition offered by these vendors is similar to or even identical to their ‘PaaS from SaaS’ peers. Vendors in this category, however, provide a platform without
an underlying relationship to a SaaS offering. As a result, the distinction between these two groups is the service providers themselves, not the types of services they deliver.
Integration Platform as a Service - IPaaS
•Integration platform as a service started out as the integration of on-premises apps with their SaaS peers. This is an emerging market, with some players already expanding into other
cloud layers.
Infrastructure SaaS
•SaaS is about making business processes and applications available as a remotely hosted and managed service, accessible through a Web browser. In SaaS, offerings are prebuilt as
services and subscribed to externally, accessed via a Web browser. When we examine the cloud market through a narrower lens - excluding SaaS (enterprise apps) - we include IT
Management as a Service, Online Backup, and Cloud Archiving segments within our analysis because their market characteristics and adoption drivers mimic the IaaS and PaaS
markets to a greater extent, as opposed to the broader enterprise SaaS application market.

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Cloud Computing as a Service – Definitions 2/2
IT Management as a Service (ITMaaS)
•ITMaaS vendors provide the essential management tools that enable users to access and view an IT environment, monitor and evaluate performance, and ultimately improve the functionality of IT environments
through a cloud delivery model. The ability to gain visibility into an internal IT structure and deliver the performance data is a critical component within the management process. Through ITMaaS offerings,
enterprises are able to easily capture, analyze and monitor the risks, costs, capacity constraints and other performance metrics that help ensure the optimization of IT resources.
IT Service Management
•IT service management software tracks, records and manages problems related to the IT infrastructure and operations. This category includes IT helpdesk applications and related problem determination and
resolution applications, including knowledge bases. Also included in this segment of our analysis are vendors that provide event management tools that automate the analysis and response of the systems to
non-scheduled system and application events.
Systems and Network Monitoring & Management
•Cloud monitoring tools drill down from the application code through the VM to the underlying physical server and network layer. The most effective way to monitor cloud workloads without heavy overhead is with
monitoring tools that are themselves cloud services. SNM&M tools allow users to monitor and analyze their IT environment via a SaaS model. Specifically, these cloud delivered tools identify, monitor and capture
information surrounding the risks, costs, constraints and other performance metrics of an IT environment. Cloud analytics tools are used to ensure that performance data can be accurately measured and
interpreted. These analytics tools must be able to analyze multitier, multisystem (virtual or physical) and multivendor/OS environments.
Resource Utilization, Capacity Planning & Billing
•Resource utilization enables companies to better utilize server resources by running flexible workloads (regarding when they are run) alongside primary applications. These can be workloads such as reporting,
data analysis, media conversion, Web crawling, search indexing, and other compute-intensive workloads and maintenance tasks. Capacity-planning vendors provide insight into the cloud environment. This
enables customers to establish new workload and capacity management strategies based on previous events. As for billing and chargeback capabilities, simply stated, without them there can be no cloud. Billing
systems must be cloud-aware. There is no way to utilize a generalized IT billing system because many of the concepts, such as granular billing and non-physical assets, are, if not unique to the cloud, then nearly
so. Billing functions are often bundled into a broader cloud product, and, therefore, the billing vendors included in our analysis are limited to those with a stand-alone billing capability.
Online Backup/ Recovery
•Online backup services allow organizations to protect data stored on a range of end user devices (eg laptop, desktops, tablets) and servers; they usually operate through the installation of a host-based software
agent which captures changed data and automatically stores a copy of it on a remote server through a secure internet connection. Online backup services vary greatly in their sophistication, ranging from simple
consumer-centric services that make a daily backup of important files and documents, to comprehensive, enterprise-grade services that allow companies to protect their important data and applications from a
range of outages.
Cloud Archiving
•Cloud archiving services are designed to store infrequently accessed data that needs to be retained for a range of IT, business, governance, compliance or legal reasons. The most frequently archived data type is
messaging data (mainly email), where cloud archiving providers provide search and indexing tools to allow organizations to quickly identify required data. However, cloud-based archiving services are also
emerging for the retention of large file content types, such as engineering designs and documents, patient healthcare images and video images. These tend to be priced by capacity, whereas message-centric
archive services are priced on a per-mailbox level.

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 Cloud Computing as a Service – Criteria
Our Definition of a Cloud Service: With the cloud concept firmly
Accessibility embedded in the marketing lingo across the technology landscape,
we constantly witness ‘cloudwashing’ – the practice of including
many legacy products and services under a company’s cloud
Programmatic Management Interface umbrella. To enable us to sift through the marketing noise and
gather data on true cloud offerings, we examine each product or
service using eight primary attributes that together constitute and
Multi-Tenant Architecture
define a cloud service. These attributes should not be evaluated in
isolation since each builds on the one before it, and there are clear
Accounting Granularity & Cost Allocation dependencies, with certain cloud properties being difficult to
architect without the appropriate supporting attributes. Only when
the full stack is satisfied will an offering be included in our cloud
Scalability & Elasticity computing analysis.
These criteria are designed primarily as a yardstick for examining
and evaluating various types of cloud offerings. Through proper use
Rich Web Management Capabilities
of the attributes, one can determine just how ‘cloudy’ an ostensible
cloud computing or storage offering is, and if that offering in fact
Rapid Provisioning & Self-Service qualifies as a cloud service using objective metrics. The eight
attributes we use to determine what is and what isn’t a cloud
offering for this analysis are listed here. A more detailed discussion
Virtualization & Hardware-Independent of each of these criteria is provided in 451 Research’s free Cloud
Codex report, which is available for download at
https://451research.com
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