Why is everybody getting into the IaaS business? For a long time, Amazon was a leading player in this space, followed by Rackspace, Savvis, etc. There were no new companies for quite a while. However, most recently, IaaS has been gaining significance; the new entrants into this space are Google, Microsoft and HP. While Amazon, Rackspace and Savvis have been predominantly operating in the IaaS space, Google is more of a PaaS and SaaS player. It did a little bit on the IaaS side with Google drive, but nothing to the extent of Amazon S3.
Microsoft was also a platform player with Azure, but recently introduced an IaaS offering into Azure. For HP, it was a brand new entry into the Cloud Space. While I am not sure about what technology Google is using to power its IaaS (should probably be based on Xen or KVM), HP’s IaaS management layer is run on OpenStack with Xen as the Virtualization layer.
One of the Forrester reports (Sizing the Cloud, April 2011) suggests that by 2020, the IaaS market, including both the Public and Managed Private Clouds, will reach about $30 Billion. A report by Parallels suggests that the global IaaS market for SMEs will be close to $27 Billion in 2014. These numbers do look small in comparison to the overall Cloud market with SaaS, but is still a big number.
Is this trend only limited to the large players or is it common even with the Tier 2 and Tier 3 players? In India, TCL launched InstaCompute a few quarters ago. Sify is also planning to launch their IaaS service soon. From my visits to Hosting Provider prospects around India, almost everybody is looking at launching an IaaS offering in the form of Virtual Private Servers or VPS.
The rush into offering IaaS is now beginning to be a trend. If the trend persists, then probably, there should be a demand that is driving this trend. Some of the possible reasons that could be driving this trend:
Well these are what I could think of. Do share your views on it.