Report: Booming market should lead IT industry to embrace cloud services

Service providers must embrace cloud services and bundle them into their technologies for small and midsize enterprises as well as large ones, according to a report from Analysys Mason. The researchers found that the global market for enterprise cloud-based services will grow from $12.1 billion in 2010 to $35.6 billion in 2015.

The report by London-based Analysys Mason predicts the year-over-year growth rate will be 43 percent in 2011, but will decrease to 13 percent annually over the next five years. Software-as-a-service (SaaS) will account for 70 percent of revenue in 2010, while the share taken by infrastructure-as-a-service (IaaS) will increase from 30 percent to 40 percent over the next five years.

By 2015, registered IT and application partners, such as agents, systems integrators, dealers and direct market resellers, will account for 39 percent of this revenue. IT and application vendors will take 36 percent, while telecoms and cable TV operators will secure a 23 percent share, according to the report.

Other findings include:
  • Operators should bundle cloud-based application and infrastructure solutions with core connectivity.
  • Operators should focus on the small and medium-sized enterprise segment rather than large businesses.
  • Traditional IT and application partners must embrace cloud technologies to avoid missing out on more than $14 billion in revenue by 2015.
  • IT and application vendors should seek out the particularly high revenue opportunities in the developed markets in the Asia-Pacific region, North America and Western Europe.

Further information is available here.

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