Hosting Versus Cloud: Aren't They All The Same?

This IDC Insight is designed to help clarify IDC's taxonomy as it applies to the overall hosting-versus-cloud-services continuum. The framework can be used as a road map and reference for determining how these services are evolving and converging across the foundational markets as defined by the IDC taxonomy. Hosted services extend from traditional colocation and Web hosting services to hosted application and infrastructure management. In this document, we contrast hosted and cloud services at the infrastructure level. Benefits of this differentiation include:

• A clearer delineation of the differences between the services, delivery methods, alternative sales models, and a host of other parameters that define these services
• A definitional template for understanding a broadening spectrum of "cloud computing" services by traditional SPs and newer online players
• Evidence of the seismic shift IDC predicts in the competitive landscape -- impacting providers, customers, and datacentre management -- towards the cloud services and the gray areas between hosting and cloud
• Validation of the need for greater simplification in the marketing and communication of the different service solutions

Companies remain under increased pressure to contain costs while adapting to new market requirements. The ability of providers to offer innovative, lower-cost, flexible, secure, and reliable solutions that are easily understood for the value they bring will be key to the pace of adoption of newer services.