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Dedicated (Local) Cloud Infrastructure-as-a-Service to grow almost 1000 per cent in five years

(2021/07/06)


Analyst firm IDC has a new abbreviation for your cloudy dictionary: DCIaaS, which stands for Dedicated (Local) Cloud Infrastructure-as-a-Service.

“This model is essentially a dedicated version of a publicly available cloud offering, modified to run on-premises or in a specially certified colocation environment, including outside of a traditional datacenter environment,” the firm explains. “The cloud service provider retains full ownership of all underlying infrastructure hardware and software and is completely responsible for delivery, maintenance, updating, and ultimate disposal of the asset when the subscription is terminated.”

DCIaaS delivers compute and storage infrastructure and is consumed as a service.

[1]

And it’s set to explode.

[2]

[3]

IDC estimates that worldwide annual recurring revenues for the offering will grow from $138 million in 2020 to $14 billion in 2025. That’s a compound annual growth rate (CAGR) of 151.8 per cent.

The analyst firm suggests that DCIaaS will be snapped up by enterprise customers and service providers alike, with the latter using it to power their own clouds.

[4]Indian businesses go on a server-buying spree, largely with HPE

[5]Enterprise databases deployed in Kubernetes? Proceed with caution, warns seasoned analyst

[6]Chromebook boom won’t outlive COVID-19 pandemic, says IDC

By way of comparison, IDC rates total annual server revenue around $80 billion, IaaS spend at $67billion, and PaaS spend at $47.5billion. IaaS and PaaS will almost certainly keep growing between now and 2025. DCIaaS has the potential to slow that growth and shift the server market.

Some vendors have already moved towards DCIaaS. Dell will happily drop a PAYG VMware-powered cloud onto your premises, while HPE uses its GreenLake cloud services to control its own hardware. It will even [7]charge by the number of cores you use on-prem and let you turn those cores off and on.

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Big cloud operators are also moving their wares to your premises. AWS offers [9]outposts , Oracle offers its [10]“Cloud@Customer” , and Azure Stack brings plenty of Microsoft cloud services into your very own bit barn.

All of the above suggest an easier and more cost-effective method of running cloud-like infrastructure and/or a way to run cloud with less latency and a little more comfort about data not leaving the building. Yet The Register also constantly hears that for certain workloads the costs of any consumption-based computing exceed those of more conventional on-prem procurement.

Cost alone, of course, is not the main reason to adopt any form of cloud — relieving oneself of the obligation to care for and feed servers and storage is another big motivator. DCIaaS certainly meets that brief, which may explain IDC’s very optimistic projections. ®

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[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YOQpwPrmrhSxafmXzoFihgAAAIg&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YOQpwPrmrhSxafmXzoFihgAAAIg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YOQpwPrmrhSxafmXzoFihgAAAIg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[4] https://www.theregister.com/2021/06/29/indian_storage_and_server_sales_q1_2021/

[5] https://www.theregister.com/2021/06/24/postgres_kubernetes_danger/

[6] https://www.theregister.com/2021/06/24/idc_personal_computing_device_tracker_chromebook_boom_ends/

[7] https://www.theregister.com/2021/06/22/hpe_discover_silicon_as_a_service/

[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YOQpwPrmrhSxafmXzoFihgAAAIg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[9] https://www.theregister.com/2019/12/09/outposts_local_zone_wavelength_its_a_new_era_of_distributed_cloud_says_aws_architect/

[10] https://www.theregister.com/2020/07/08/oracle_cloud_on_premises/

[11] https://whitepapers.theregister.com/



Great News Suckers - On Prem Really Is Better

Lunatic Looking For Asylum

Providing it's our kit that's on prem - not yours.

The cloud providers must be wetting themselves with laughter over this. The tin vendors as well. It's a win win for everybody apart from the poor customer who's decimated their data centre, culled their staff and outsourced everything.

Cue the architects going to the board telling them this is the future and polishing their CV for the next job.

I *&^%ing hate this industry at times.

Re: Great News Suckers - On Prem Really Is Better

Roger Kynaston

It was always like this. I well remember sweating blood to learn how to do Solaris containers - it looked like a good idea only for Oracle to effectively kill off any wish to own Sparc kit. Then docker and the other container technology came along that was all shiny and new.

And, what is the cloud if not a mainframe writ large?

OMG!

jake

They've invented the server!

What geniuses!

Re: OMG!

IGotOut

No, not a server, a cluster.

Millwright

Maths, dear chaps. 138M to 14B is a touch over 100x, which is 10,000%

New but the same old

elsergiovolador

The glorified server in the utility room.

Who had to go to the office at night because the cleaners pulled the wrong plug to connect the hoover?

Re: New but the same old

Chris G

History constantly repeats itself but each repeat has subtle differences.

In this case, instead of Xerox renting copiers and making the client pay extra for toner, paper and a bloke to polish the drum, it's server rental and maintenance.

Still with the lock in and inflated hidden costs tied up by a contract written on stone, I assume.

Haste makes waste.
-- John Heywood