Cloud computing uses internet to store data and run applications. Cloud computing is slowly and steadily replacing tangible servers with virtual servers, which can be accessed over web. Stored data in virtual servers are accessible anywhere in the world by third-party vendor.

Challenges in Cloud Industry: Cloud computing comes with its own challenges. For small and medium size business, shifting few of the applications/ information/ data could be more advantageous rather than moving everything in cloud. Few of these challenges are:

Data Privacy & Security: Ownership over data could be the biggest question mark with cloud computing. When data goes to cloud environment, it is subject to laws of the country where cloud server is actually installed. According to United States Software Industry – Japan, Australia, Germany, France, South Korea, UK, USA, Italy rank among the top countries where cloud policies and regulations are strictly followed. Turkey, China, Vietnam and Indonesia and other Asian countries are ranked at the bottom.

Other challenges can be categorized as server downtime, inflexibility and customer support.

Cloud Industry Current Trends

According to a latest report by Forrester Research

• For starters, the infrastructure as a service market will peak at $5.9 billion in global revenue in 2014 and then commoditization, price pressure and falling margins kick in. In other words, early wins by Amazon Web Services and Rackspace won't add up in the long run.
• Software as a service (SaaS) will be adopted by companies of all sizes. In 2011, SaaS will be a $21.2 billion market and grow to $92.8 billion in 2016. At that point SaaS comes closer to saturation.
• BusinessProcess as a service will be notable, but face modest revenue.
• Virtualization will recede to the background as new technologies take over.

Major Cloud Industry Players

Rackspace Cloud was originally launched as Mosso LLC on March 4, 2006. In 2011, the "Rackspace Cloud" brand merged with Rackspace.com. In 2012, Rackspace rebranded as "Rackspace, the open cloud company.”

Zoho claims 6 million people are using their cloud service. ZOHO application platform seamlessly blend on-site data and applications with the data and applications they have in the cloud.

Amazon Cloud delivers scalable, on demand customization in the cloud.

Google: Gmail, Google Docs, Google Calendar are widely used applications running successfully on cloud environment till date.

Microsoft’s office 365 combines online office software for email, document sharing, and web conferencing.