Global cloud server mkt: IBM, HP, Dell and Oracle dominate

DUBLIN: Research and Markets has announced the addition of the "Global Cloud Server Market 2012-2016" report to their offering. The Global Cloud Server market to grow at a CAGR of 16.93 percent over the period 2012-2016.

One of the major concerns for enterprises and end-users to adopt cloud computing and its applications is the reliability and affordability of the solution. There are concerns over the security of data in the cloud servers as end-users are unaware of the location of the data stored. To address these concerns, the cloud service providers are incorporating disaster recovery measures where a backup of the data and applications are stored in a backup server. In case of a disaster, the data is recovered and restored back. Further, there are many measures being taken to reduce the costs associated with cloud computing such as the incorporation of high-performance computing equipment and virtualized infrastructures which reduces the capital expenditure of the cloud service provider, thereby reducing the cost of the services.

According to the report, one of the major drivers is the need for the faster provisioning of enterprise applications. Cloud-based service providers are able to cater to the application requirements of the enterprises at a faster rate compared to internal provisioning. The cloud-based applications do not require huge capital investments for their adoption which is driving enterprises to increase their adoption.

Further, the report states that one of the major challenges is the increasing adoption of virtualized servers by the service vendors, which is reducing the demand for physical servers across cloud computing networks. To provide a cheaper service and reduce the physical infrastructure the cloud service providers are procuring virtualized infrastructures.