Compute as a Service - The 451 Group

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Sep 2010
Compute as a Service

Compute as a service (CaaS) is the provisioning of computing resources (access to raw compute or server capacity) on demand. This cloud computing layer involves the delivery of virtual or physical resources as a service, priced via a consumption-based model. CaaS was the original cloud offering, emerging in 2006 via the launch of Amazon’s EC2. While EC2 continues to enjoy a significant market-share lead, more than 50 vendors have entered the space to challenge the leader for a piece of the pie. With commoditization taking hold, the sector faces unique challenges but remains a core part of the broader cloud universe. This report examines the revenue being generated by CaaS providers, predicts the growth trends for the space, and highlights the opportunities and threats facing vendors.

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About The 451 Group

The 451 Group is an independent technology industry analyst company focused on the business of enterprise IT innovation. The company's analysts provide critical and timely insight into the market and competitive dynamics of innovation in emerging technology segments. Clients of the company - at vendor, investor, service- provider and end-user organizations - rely on 451 insight to support both strategic and tactical decision-making for competitive advantage.

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