In 2012, Cloud computing has helped IT in many organizations and has become more dynamic. The spending on cloud computing grew to over $109 billion, up 20%. The total expenditure for cloud computing services could nearly double, to $207 billion, by 2016, according to the forecast made by Gartner.
Cloud computing became the mainstream in 2012. Some start-up companies recorded exceptional growth, and won numerous awards and recognition. But for some service providers, 2012 was a pretty tough year with a number of outages, affecting millions of users and some even causing permanent data loss to its customers, according to Ali Din, Sr. Vice President and CMO at din Cloud.
Many vendors were doing some variations to their service catalogs in 2012. For example, some hosts such as GoDaddy decided to decrease their cloud server offering. Meanwhile, new cloud products was also launched by a variety of start-up companies such as din Cloud, expanded their portfolio by launching cloud hosted servers and NetApp-based cloud backup and storage solutions. Some high level acquisitions in 2012 include Dell-Wyse acquisition for virtual desktops, followed by Oracle acquiring network virtualization technology firm Xsigo to boost cloud prowess. VMware paid top dollar for Nicera, a software-defined-networking vendor.
In 2012, despite many precautions taken by cloud service providers, there was outages (temporary suspension of operation) on a regularly basis caused by human error, quality issues, technical glitches and natural disasters. The major cloud computing outages in 2012 were Google Gmail, Amazon Web Services, Apple iCloud and GoDaddy. These outages ranged from 2-4 hours and affected millions of users, as well as companies like Quora, DropBox, Pinterest, Heroku, and NetFlix.
Outages as mentioned above can make a company hesitant about the cloud computing. Hence, the benefits associated with being in the cloud such as 50% savings on IT spend and agility has to be made more important than the risks associated with downtime and if this happens then, there can be more mainstream adoption of cloud computing in 2013.