Changing Cloud Scapes in 2014

  • author image

In my view, the cloud computing marketplace will change rapidly in the coming year. The most significant changes will be: 

  1. Enterprise decision makers will no longer debate whether cloud services are reliable or secure enough to handle their corporate needs and will aggressively pursue strategic cloud initiatives that will transform the way they operate to better compete in an increasingly challenging business environment.
  2. IT and in-house software development teams will attempt to work more closely together to help corporate business units select the right cloud service providers to satisfy their functional requirements.
  3. ISVs and other technology vendors that don’t offer a combination of public and private cloud solutions to respond to the varying needs of their corporate customers will be at a competitive disadvantage and quickly lose a significant share of the market.
  4. Although horizontal cloud solutions will continue to experience significant growth, vertical market solutions aimed at specific industries will grow even more rapidly.
  5. ISVs and other technology vendors that don’t establish partner-friendly channel programs specifically designed to address the unique dynamics associated with cloud services will fail to extend their reach in the marketplace.
  6. Best-of-breed cloud providers that don’t offer clearly differentiated solutions that are strongly aligned with key SaaS, PaaS and IaaS market players won’t survive.
  7. Successful cloud solution providers will design their services to be delivered via mobile platforms, offer social networking capabilities and include analytics that provide key performance indicators (KPIs) and other industry benchmark statistics to their customers that help them maximize the value of their solutions.
  8. Although business intelligence (BI) will be embedded into a widening array of business applications, a major cloud BI player will emerge from today’s highly fragmented market.
  9. Systems integrators and other professional services firms will continue to experience rapid growth in response to escalating demand for specialized skills to plan, design, develop, select, implement, integrate and manage cloud solutions.
  10. Cloud solution provider consolidation will accelerate through a growing number of acquisitions, mergers and asset sales. And IPOs of cloud solutions providers will also broaden to include SaaS, PaaS and IaaS providers with both horizontal and vertical market orientations. 

Jeff Kaplan is the managing director of THINKstrategies, founder of the cloud Computing Showplace and host of the cloud Innovators Summit conference series. He can be reached at


By Michael Ni

Jeff, thanks for the article. We certainly are seeing both the changes in IT and consumers around buying cloud and online services – not just direct, but increasingly via channels in online services where many categories are “winner tales all.” With the need to increasingly support frictionless digital commerce, self service engagement, and online delivered entitlements and bundled packages, your comment on the need for vertical solutions applies to how vendors have to support the total customer experience – product offering, commerce, and service/support. As Andreessen says, “software is eating the world.”

By Martin R. Browne

Some excellent observations, Jeff. As a leader in SaaS ERP applications on the Force platfom, we have found that it is certainly true that the solid IaaS, and PaaS of Salesforce provides a superior Cloud application. The risk and fear associated wiht security and data integrity in the SaaS has been greatly reduced.

Thanks again for your excellent observations.

By Ted Saul

Nice article – I spend my time in the small business arena and am seeing more embracing of cloud technologies. I think people are starting to get it.

Post Your Comment

Leave another comment.

In order to post a comment, you must complete the fields indicated above.

Post Your Comment Close

Thank you for your comment.

Thank you for submitting your comment, your opinion is an important part of

Your comment has been submitted for review and will be posted to this article as soon as it is approved.

Back to Article

Topics Related to this Article