State of the Cloud 2015 – Cote.io

Cloud Services in 2015: Key Characteristics and Trends

Cloud services in 2015 marked a period of rapid growth, mainstream adoption, and significant evolution in both technology and business models. Here’s a comprehensive overview of what cloud services were like during that year:

Market Growth and Adoption

• The global cloud market reached approximately $110 billion in 2015, growing at an annual rate of 28%2.

• Public cloud services (IaaS and PaaS) saw the fastest growth, with a 51% increase, while private and hybrid cloud infrastructure services grew by 45%2.

• Cloud infrastructure as a service (IaaS) spending alone was projected to hit $16.5 billion, up 32.8% from 20141.

• Cloud was becoming mainstream: 88% of businesses used public cloud services, 63% used private cloud, and 82% adopted hybrid cloud setups5.

Competitive Landscape

• The market was consolidating around a few major providers: Amazon Web Services (AWS), Microsoft Azure, IBM, Google Cloud Platform, Cisco, and HPE124.

• AWS maintained dominance, but Microsoft and IBM were making significant gains, especially in enterprise and hybrid cloud solutions3.

• Many smaller providers struggled to compete, with some exiting the market or pivoting to managed services1.

Key Features and Service Types

• IaaS, PaaS, and SaaS: All major service models were available and growing. IaaS and PaaS saw the highest growth rates, while SaaS continued to expand, especially with offerings like Office 36523.

• Hybrid and Multi-Cloud: Hybrid cloud architectures became the norm, with most enterprises blending public and private clouds for flexibility, performance, and cost savings45.

• Best-of-Breed Solutions: Enterprises increasingly adopted a mix of services from different providers to avoid vendor lock-in and maximize performance4.

• Security and Compliance: Security concerns drove adoption of private cloud connections and direct links to providers, with 72% of IT professionals citing security as a top benefit4.

Technical Evolution

• Internet of Things (IoT): Cloud platforms began supporting IoT, with AWS launching managed IoT services to facilitate device connectivity and data processing at scale3.

• Video and Media: Providers like IBM focused on integrating video delivery and management into their cloud offerings3.

• Containers and Efficiency: The emergence of container technology was starting to reshape how cloud data centers operated, promising greater efficiency and agility4.

Challenges

• Complexity: Many CIOs struggled with integrating cloud services due to complex existing IT environments and the need to modernize legacy applications3.

• Vendor Selection: Identifying the right mix of cloud services and providers was a major challenge for businesses3.

Summary Table: Cloud Services in 2015

In summary, 2015 was the year cloud computing became mainstream, with explosive growth, widespread adoption across industries, and the rise of hybrid and multi-cloud strategies. Market competition was fierce, innovation was rapid, and enterprises were beginning to see cloud as an essential, not optional, part of their IT strategy.