Following is information and insight from the IHS Markit Cloud & Colocation Services for IT Infrastructure and Applications Market Tracker.
· The global off-premises cloud service market is forecast to grow at a five-year compound annual growth rate (CAGR) of 16 percent, reaching $410 billion in 2023.
· We expect cloud as a service (CaaS) and platform as a service (PaaS) to be tied for the largest 2018 to 2023 CAGR of 22 percent. Infrastructure as a service (IaaS) and software as a service (SaaS) will have the second and third largest CAGRs of 14 percent and 13 percent, respectively.
IHS Markit analysis:
Microsoft in 2018 became the market share leader for total off-premises cloud service revenue with 13.8 percent share, bumping Amazon to the #2 spot with 13.2 percent; IBM was #3 with 8.8 percent revenue share. Microsoft’s success can be attributed to its comprehensive portfolio and the growth it is experiencing from its more advanced PaaS and CaaS offerings.
Although Amazon relinquished its lead in total off-premises cloud service revenue, it remains the top IaaS provider. In this very segmented market with a small number of large, well-established providers competing for market share:
• Amazon was #1 in IaaS in 2018 with 45 percent of IaaS revenue.
• Microsoft was #1 for CaaS with 22 percent of CaaS revenue and #1 in PaaS with 27 percent of PaaS revenue.
• IBM was #1 for SaaS with 17 percent of SaaS revenue.
“Multi-clouds  remain a very popular trend in the market; many enterprises are already using various services from different providers and this is continuing as more cloud service providers (CSPs) offer services that interoperate with services from their partners and their competitors,” said Devan Adams, principal analyst, IHS Markit. Expectations of increased multi-cloud adoption were displayed in our recent Cloud Service Strategies & Leadership North American Enterprise Survey – 2018, where respondents stated that in 2018 they were using 10 different CSPs for SaaS (growing to 14 by 2020) and 10 for IT infrastructure (growing to 13 by 2020).
Note 1. Multi-cloud (also multicloud or multi cloud) is the use of multiple cloud computing and storage services in a single network architecture. This refers to the distribution of cloud assets, software, applications, and more across several cloud environments.
There have recently been numerous multi-cloud related announcements highlighting its increased availability, including:
· Microsoft: Entered into a partnership with Adobe and SAP to create the Open Data Initiative, designed to provide customers with a complete view of their data across different platforms. The initiative allows customers to use several applications and platforms from the three companies including Adobe Experience Cloud and Experience Platform, Microsoft Dynamics 365 and Azure, and SAP C/4HANA and S/4HANA.
· IBM: Launched Multicloud Manager, designed to help companies manage, move, and integrate apps across several cloud environments. Multicloud Manager is run from IBM’s Cloud Private and enables customers to extend workloads from public to private clouds.
· Cisco: Introduced CloudCenter Suite, a set of software modules created to help businesses design and deploy applications on different cloud provider infrastructures. It is a Kubernetes-based multi-cloud management tool that provides workflow automation, application lifecycle management, cost optimization, governance and policy management across cloud provider data centers.
IHS Markit Cloud & Colocation Intelligence Service:
The bi-annual IHS Markit Cloud & Colocation Services Market Tracker covers worldwide and regional market size, share, five-year forecast analysis, and trends for IaaS, CaaS, PaaS, SaaS, and colocation. This tracker is a component of the IHS Markit Cloud & Colocation Intelligence Service which also includes the Cloud & Colocation Data Center Building Tracker and Cloud and Colocation Data Center CapEx Market Tracker. Cloud service providers tracked within this service include Amazon, Alibaba, Baidu, IBM, Microsoft, Salesforce, Google, Oracle, SAP, China Telecom, Deutsche Telekom Tencent, China Unicom and others. Colocation providers tracked include Equinix, Digital Realty, China Telecom, CyrusOne, NTT, Interion, China Unicom, Coresite, QTS, Switch, 21Vianet, Internap and others.
Microsoft’s Airband TV White Spaces initiative is a project that plans to bring broadband to 2 million rural Americans by 2022, beginning in Michigan and Wisconsin. Microsoft is partnering with Packerland Broadband (a division of CCI Systems). The companies are aiming for speeds of 25 Mbps downstream and 3 Mbps upstream for a fixed wireless deployment in rural Michigan and Wisconsin that will use TV white spaces and other technologies, said Cory Heigl, vice president for Packerland Broadband. The technology is “maturing pretty rapidly” and the companies hope manufacturers will support 25/3 Mbps speeds by year-end, Heigl said in a phone interview with Telecompetitor.
Packerland will use a mix of technologies to provide broadband to its customers in rural communities, including TV White Spaces and Wi-Fi hardware developed with support from Microsoft, to extend the reach of its existing hybrid fiber-coax and wireless delivery platforms. TV white spaces technology uses vacant TV broadcast spectrum and has excellent propagation, making it well suited to serve locations lacking a clear line of sight to the base station.
Packerland expects to cover approximately 33,750 people by the end of 2019, and approximately 82,000 people by 2022. As part of the Packerland-Microsoft project, Packerland will provide Windows devices, Office 365 and other cloud-based services to small businesses, consumers and students, as well as digital literacy skills training. Packerland will also leverage Microsoft Azure as part of its operations management.
When Microsoft announced Airband plans in July 2017, the company said TV white spaces will be the best approach to reaching communities with population densities between two and 200 people per square mile, while areas with lower population densities would be best served by satellite and those in areas with more than 200 people per square mile would be best served with fiber-to-the-home. Soon after Microsoft announced their initiative in July, AT&T and NetComm Wireless announced a plan to bring fixed-wireless broadband to 18 states.
Around 34 million Americans, including 19.4 million people living in rural parts of the US, don’t have adequate broadband, according to the release. About 43% of rural Wisconsin and 34% of rural Michigan lack proper internet access and thus miss out on the benefits it can offer, Microsoft said.
“Northern Wisconsin is nothing but forest,” making it challenging to use other wireless technologies, observed Heigl. Distances covered are expected to range from about one to four miles, Heigl added.
The Microsoft – Packerland service, which will also tap other fixed wireless and wired technologies, is targeted to be available to 33,750 people by the end of 2019 and approximately 82,000 people by 2022. This deployment is one of 12 projects planned as part of the Microsoft Airband TV White spaces initiative, which aims to bring broadband to 2 million people in rural America by 2022.
“This partnership with Packerland Broadband will help us address the rural broadband gap in northern Wisconsin and Michigan’s Upper Peninsula,” said Brad Smith, president of Microsoft. “Broadband has become the electricity of the 21st century, essential for education, business, agriculture and health care. Microsoft’s Airband Initiative is focused on bringing this necessity of life to 2 million people in rural counties by 2022.”
“Partnering with Microsoft allows us to bring new services and push our services further into the rural landscape in our region and beyond,” said Cory Heigl, vice president of Packerland Broadband. “We are the people we serve, and in this part of the world, we want to make an impact for the better. Our partnership with Microsoft will help us to influence lives by improving at-home education, enhancing economic opportunities, keeping up with health care advancements and furthering the agricultural innovation of our rural communities.”
“The mission of TechSpark Wisconsin is to bring new digital solutions to our region,” said Microsoft TechSpark Wisconsin Manager Michelle Schuler. “Packerland Broadband and Microsoft are making it possible for people living in rural Wisconsin to have the same opportunities to live, learn and work as people living in connected cities. That’s win-win for the people living here and the region’s economy.”
CCI Systems, Inc. CEO John Jamar said, “We have been focused on making life better by connecting people through innovative communications networks, and we are enthused to team up with our friends at Microsoft to accelerate that.”
“The time is right for the nation to set a clear and ambitious but achievable goal – to eliminate the rural broadband gap within the next five years by July 4, 2022, “said Brad Smith, president and chief legal officer at Microsoft in a blog post announcing the project. “We believe the nation can bring broadband coverage to rural America in this timeframe, based on a new strategic approach that combines private sector capital investments focused on expanding broadband coverage through new technologies, coupled with targeted and affordable public-sector support.”