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Yet another important distinction for TPC is its proximity to customer data. Back in 2015, Wikibon explains, the company first predicted that businesses would stop pushing data to the cloud, instead choosing to build cloud-based systems around their data. This was an issue that was hotly contested by indus- try experts. Now, though, this is becom- ing increasingly common. “For the last few years, this prediction generated disagreement among some cloud industry competitors,” Burris said in the report. “The reason? On the one hand, cloud service suppliers (CSP) argued that all data could move to public clouds. On the other hand, suppliers of on-premises systems continued to negate the cloud op- erating model, suggesting that customers really wanted to buy cloud-friendly tech- nologies on traditional system types. The exception was Microsoft, which positioned Azure Stack as an on-premises extension of the Azure Cloud.” As Burris pointed out, most major CSPs and systems companies have introduced hybrid products and services that allow customers to choose where they want to process their data. All signs indicate that we will see prolonged investment in TPC dur- ing the next decade or so, as demand for flexible data processing continues. Key market drivers The TPC market grew by about 55 per- cent last year, swelling from $13.1 billion in 2016 to $20.3 billion in 2017. The TPC sector is about 40 percent the size of the infrastructure-as-a-service (IaaS) sector and is growing about 50 percent faster. The report predicts the global TPC market will continue growing at a com- pound annual growth rate (CAGR) of 29.2 percent through 2027, when it will reach $262.4 billion. On-premises TPC will grow at a rate of 32.5 percent CAGR until this time, which is interesting when consid- ering that the majority of TPC spend was towards hosted private cloud services during the last several years. Now, this appears to be changing. On-premises TPC spend more than doubled to $10.6 billion in 2017. Dell EMC, HPE and Cisco/NetApp hold the top three share positions for on-prem- ises TPC solutions at 29 percent, 13 percent and 11 percent, respectively. Other leading players are Nutanix (7 percent), Oracle (5 percent), IBM (3 percent) and Lenovo (2 percent). The market also will continue to ben- efit from rising data consumption and distributed storage systems. Data, Bur- ris explains, though highly lucrative, still has some restrictions. It requires time to move, for instance, and energy to sus- tain. Bandwidth and latency also must be considered. “Taken together, these constraints ensure that all data won’t end up in one public cloud, but rather a multitude of distributed locations, each architected to compute local data according to the needs of local tasks,” Burris said. “Enterprises increasingly demand a public cloud-like experience for all loca- tions, both on-premises and edge,” he continued. “Essentially, this means that technology vendors must render prod- ucts in cloud service terms: pay-as-you- consume, self-service console, software- defined resources services acquired via APIs and advanced use of automation to keep administration complexity and costs at a minimum.” o virtual reality Worldwide True Private Cloud Revenue by Segment, 2016-2017 Source: Wikibon 46% yees yees day? 25 20 15 10 2016 Hosted True Private Cloud True Private Cloud On-premises 2017 5 0 Revenue $B 5.0 8.1 9.7 10.6 Worldwide Cybersecurity Market Forecast ($B) Source: Cybersecurity Ventures; Gartner Partner Programs Still Important to Most $600 $500 $400 $300 $200 $100 $- 2016 2017 2018 2019 2020 2021 2022 2023 2024 Market Forecast 10- critical 9 30% 0% 20% 40% Top four: 77% 18% 21% 8% 5% 6% 2% 1% 9% 8 7 6 5 4 3 2 1 not at all important Average score 2018: 7.7 2016: 8.2 2014: 7.8 How important are partner programs when considering or ev luating your r l tionship with a vendor? Please rate on a scale from 1 (not at all important) to 10 (critical) National or local retailer On-line only retailer Security dealer Broadband servic provider Direct from ma ufacturer Other Channel Purchase Locations - Networked Camera Source: Parks Associates U.S. broadband households that own a networked camera True Private Cloud Spending ($B)(CAGR 29.2%) Source: Wikibon 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 11.6 13.9 19.6 28.4 38.2 47.8 60.5 71.6 78.7 86.6 20.4 37.5 53.3 71.1 89.7 107.8 1 5.7 142.2 158.4 175.7 32.0 51.3 72.9 99.5 127.9 155.7 186.3 213.8 237.2 262.4 0.0 50.0 100.0 150.0 200.0 250.0 300.0 Revenue $B Hosted True Private Cloud (CAGR 24.4%) True Private Cloud On-Premises (CAGR 32.5%) Hosted True Private Cloud True Private Cloud On-Premises All TPC Channel Vision | September - October, 2018 46