Roundup of cloud computing market estimates for 2015
From price wars to new tools and services, the cloud market was buzzing in 2014. Changes in end-user computing strategies are one of the major trends witnessed in this market, and many companies have started to adopt cloud-based solutions.
At the same time, according to a Goldman Sachs study published last month, global SaaS software revenues are forecasted to reach $106 billion in 2016, increasing 21% over projected 2015 spending levels. So, in order to get a better understanding of the cloud computing market in 2015, let’s take a look at the most important estimates and predictions:
- By 2018, 59% of the total cloud workloads will be Software-as-a-Service (SaaS) workloads, up from 41% in 2013 – Cisco is predicting that by 2018, 28% of the total cloud workloads will be Infrastructure-as-a-Service (IaaS) workloads down from 44% in 2013. 13% of the total cloud workloads will be Platform-as-a-Service (PaaS) workloads in 2018, down from 15% in 2013.
- Security (36%), cloud computing (31%) and mobile devices (28%) are the top 3 initiatives IT executives are planning to have their organizations focus on over the next 12 months.
- 42% of IT decision makers are planning to increase spending on cloud computing in 2015, with the greatest growth in enterprises with over 1,000 employees (52%).
- By 2018, more than 60% of enterprises will have at least half of their infrastructure on cloud-based platforms.
- The SaaS Supply Chain Management (SCM) market is predicted to a $4.4B market by 2018, attaining a 19% CAGR from 2014 to 2018.
- By 2018, IDC forecasts that public cloud spending will more than double to $127.5 billion. This forecast is broken down as follows: $82.7 billion in SaaS spending, $24.6 billion for IaaS and $20.3 billion in PaaS expenditures.
- Microsoft’s commercial cloud revenue grew 128% in Q3, 2014, while server products and services revenue increased 13%.
- By 2016 over 80% of enterprises globally will be using IaaS, with investments in private cloud computing showing the greater growth.
- IDC predicts that by 2016, there will be an 11% shift of IT budget away from traditional in-house IT delivery, toward various versions of cloud computing as a new delivery model. By 2017, 35% of new applications will use cloud-enabled, continuous delivery and enabled by faster DevOps life cycles to streamline rollout of new features and business innovation.
What we can see here is that the cloud market will continue to gain acceptance and become a key element in delivering IT services. Cloud adoption will continue to pick up, but we’ll see more of a shift to software as a service (SaaS) and platform as a service (PaaS) as cloud providers look to raise revenues. Are you ready for going cloud?
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