The Global Market for Cloud Computing Services is Projected to Reach US$336 Billion by 2020

Rising Demand for Cost Effective & Flexible IT Resources to Drive Demand for Cloud Computing Services, According to New Report by Global Industry Analysts, Inc.

GIA announces the release of a comprehensive global report on Cloud Computing Services markets. The global market for Cloud Computing Services is projected to reach US$336 billion by 2020, driven by the growing demand for cost effective, sustainable and flexible IT resources.

Cloud technology is liberating companies from the shackles of conventional IT, allowing mobile workers in a virtualized company to work from anywhere around the world with just an internet connection. Allowing company employees to access files and computer services over the internet, cloud computing is eliminating the need for installing hardware and software on the PC. Employees are no longer chained to the dusty old desktop PC and the need for a traditional brick-and-mortar office is gradually crumbling. Massive improvements in the availability of bandwidth have enabled cloud computing to spread out its wings.  

Cloud computing enables energy efficient use of IT resources. Cloud computing allows for resource pooling and sharing. The multi-tenancy concept helps save energy. The concept boosts energy efficiency of per unit of output by enabling shared infrastructure, and driving down aggregate electricity consumption. Datacenters powered by cloud services offer greater cost/energy advantages than traditional enterprise data centers. Cloud computing eliminates the need for on-premise IT infrastructure thereby reducing energy requirements of enterprises. Cloud Computing is therefore gathering critical mass in reducing datacenter footprint and squarely address the issue of surging worldwide IT-related energy consumption. With “Virtualization” and Green IT efforts becoming standard IT strategies in enterprises, cloud services as key enablers of these IT strategies will continue to benefit big time in coming years.

Cloud Computing has been garnering a huge amount of interest, especially among small & medium enterprises (SMEs) based on its cost advantages and low investment risk. Cloud based services allow expensive technology solutions such as enterprise-grade e-mail communications, CRM, Web videoconferencing and collaboration software to be available as a service over the web browser for nominal monthly subscription, thereby making them easily affordable even to smaller organizations with 4-5 employees. Attracted by the prospect of gaining access to such high-end technologies, whose adoption until recently were largely limited to huge multinationals with strong financial muscle, SMEs have been increasing their investments on cloud computing services. With cloud computing democratizing IT, advanced data analytics capabilities which were traditionally largely limited to large financially strong enterprises are now increasingly available to SMB enterprises.

As stated by the new market research report on Cloud Computing Services, the United States represents the largest market worldwide. Asia-Pacific represents the fastest growing market with revenue from the region projected to wax at a CAGR of 16.0% over the analysis period. Cloud Advertising represents the largest segment. Infrastructure as a Service (IaaS) ranks as the fastest growing market sector with revenue waxing at a CAGR of 23.2 % over the analysis period. Growth in IaaS market is led by big data induced increased demand for Compute and Storage Service, and enterprise mobility driven adoption of cloud print services.

Major players covered in the report include Akamai Technologies Inc., Amazon Web Services Inc., CA Technologies Inc., Caspio Inc., Dell Inc., ENKI LLC, Flexiant Limited, Google Inc., GoGrid, Hewlett-Packard Development Company L.P., IBM Corporation, Joyent Inc., KloudData Inc., Layered Technologies Inc., Microsoft Corporation, Netsuite Inc., Novell Inc., OpSource Inc., Oracle Corporation, RightScale Inc, Rackspace Hosting Inc., Red Hat Inc., Salesforce.com Inc., Skytap Inc., and Verizon Terremark, among others.

The research report titled “Cloud Computing Services: A Global Strategic Business Report”, announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in US$ for all major geographic markets including the United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (Australia, China, India, South Korea, Rest of Asia-Pacific), Latin America (Brazil & Rest of Latin-America)  and Rest of World. Service segments analyzed in the study include Software-as-a-Service (SaaS) (ERP, CRM and Other Saas), Platform-as-a-Service (PaaS) (AIM and Other PaaS), Infrastructure-as-a-Service (IaaS) (Computer and Other IaaS),  Business-Process-as-a-Service (BPaaS) (HR, e-Commerce Enablement, Cloud Payments, and Other BpaaS), Management & Security Services (Storage Management and Others) and Advertising.