DynamicOps, cloud services provider, reported a 300 percent growth in the private cloud market through 2011. INetU, a managed hosting provider,last summer added a sixth data center. Rockspace, a cloud service provider,posted double-digit growth courtesy multiplying demand for cloud services. All these examples indicate that private cloud-based solutions will continue to grow.

Richard Krueger, CEO, DynamicOps was quoted in a press release,“Many enterprises are finding that cloud implementations take a lot more time and money than they had planned, and don’t deliver the ROI they had expected. These companies are increasingly turning to DynamicOps because we enable the fastest time-to-cloud value and the greatest IT efficiencies. This is evident in our 2011 results, which show not only unprecedented new customer growth, but also a dramatic increase in the portion of software license bookings compared to services and a major acceleration in days-to-live-production. This is a direct result of our expanded, robust out-of-the-box capabilities and how easy we make it for customers to quickly deploy and, when needed, extend and tailor their own requirements.”

More companies want to adopt private cloud because of the speed, security and agility it offers. To completely absorb its benefits companies should be able to easily transition to and manage the infrastructure.

By 2014, worldwide cloud services revenue is forecast to reach $148.8B. Gartner estimates that over the next five years, enterprises will spend $112B cumulatively on cloud-services, combined.

IDC estimates cloud computing to grow by $45B in 2012. Frank Gens, Senior Vice President & Chief Analyst,IDC's research said, “There are lot of activities around cloud that we expect to see, such as expect to see SME/SMB to increase their experimentation and implementation of cloud-infrastructure and applications."

This year's market conditions are very different: ambitions, budgets, objectives and approach towards software management are all different from last years. 2011 was all about arming yourself with awareness on cloud. 2012 is all about implementing the information and coming years will see total transformation of IT services on cloud platform.

This year the impact of the shift to cloud computing will become apparent. Fred Côté, president Kunnect predicts 75 percent of companies will choose cloud subscriptions lasting more than one year.

Phil Fersht, founder of outsourcing consultancy Horses for Sources, calls cloud services the foundation for next-generation enterprise sourcing solutions. He believes cloud services will make traditional delivery of IT services more efficient and cost-effective. He adds, "This new class of outsourcing has the potential to unlock tremendous value for customers."