For those desperate to understand the market size of Cloud, two articles in the recent news provide interesting insight. The first, from the Economist, demonstrates ClockKick’s attempts to estimate Amazon’s virtual computer provision, and estimates 90000 servers for Amazon – in the USA East-Coast only!
Quote: “Randy Bias, the boss of Cloudscaling, a IT-engineering firm, did not use these results when he put Amazon’s annual cloud-computing revenues at between $500m and $700m in 2010. And in August UBS, an investment bank, predicted that they will total $500m in 2010 and $750m in 2011.” (Economist 29th December 2010).
Another interesting thing to watch is Intel’s profits which have risen “thanks to server sales”. Making profits of $3.4bn in current economic times is tough – as the flat sales of PCs is testament. It is in the sales of servers that this profit has been made. A large proportion of these servers must be going into cloud, either to replace ageing (and power-hungry expensive data-centers) with virtualised servers (as private clouds in some form) or to provide public cloud offering (and SaaS services such as FaceBook and Google) within newly developed data centers.