The Cloud Computing Industry Segments

Those following cloud computing, even at just a high level, have surely been exposed by now to the three common delivery models for cloud services: Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS). These delivery models hint at the structure of the cloud computing industry, but of course do not fully describe it. What is needed is a more complete view of the cloud computing industry segments.

Describing the cloud computing industry segments is a somewhat tricky proposition. Every week -- and often daily -- new solutions, technologies and services are coming to market. Additionally there are new businesses being formed, mergers and acquisitions between existing businesses, and even more businesses reconfiguring themselves to take advantage of all the related opportunities. In other words, any proposed industry structure or segmentation model is subject to change in relation to all of the forthcoming developments.

Still, there is value in outlining some of the segments that are gaining traction and that may even thrive as the industry continues its formation. Neovise is using the following approach which will be periodically updated. The top segments or “super-segments” are currently:

1. Cloud Services
2. Cloud Enabling Technologies, Solutions and Services
3. Cloud Integrated Solutions

The first super-segment does not require much explanation since, at a high level, it mirrors the deployment models. There are additional details and further levels of segmentation for the listed sub-segments that are not addressed here. For now, the Cloud Services super-segment is:

Cloud Services, which are offered by cloud service providers, include:
a. SaaS
b. PaaS
c. IaaS

The second super-segment is already large and still growing. There are also a number of ways it may evolve which could lead to the creation of additional super-segments. For now the second super-segment is described as follows:

Cloud Enabling Technologies, Solutions and Services:
a. Cloud platforms and engines
b. Cloud appliances
c. Cloud management
d. Integration tools and services
e. Application migration and containerization
f. Cloud usage and billing
g. Hybrid cloud technologies including cloud bursting
h. Intercloud technology
i. Linking technologies from internal IT to the cloud (e.g. IT Service catalog)
j. Cloud service add-ons (e.g. disaster recovery, identity management, security)
k. Others…

The third and currently last super-segment is expected to grow dramatically over the next two years. As suggested below, the idea is that many traditional applications will begin to offer pre-integrated cloud capabilities:

Cloud Integrated Solutions:
a. Applications pre-integrated with SaaS solutions
b. Applications pre-integrated to leverage IaaS as needed
c. Applications pre-integrated to leverage cloud-based storage
d. Others…

The Neovise website has profiles of many vendor solutions organized around this same segmentation model. The profiles can be found by starting here. Note: by registering, readers will get enhanced navigation as well as the ability to download all reports on the site.

Each of the super-segments as well the underlying sub-segments contains more details and will benefit from further discussion in a future blog post.