CaaS Featured Article

Infrastructure as a Service Market Grows Fast

December 17, 2012

Cloud computing service provider revenue from “infrastructure as a service” (IaaS) and platform as a service” (PaaS) topped $2.75 billion in the first half of 2012, suggesting that full-year revenue will exceed $5.75 billion, on a global basis.

Amazon continues to be a clear leader in IaaS with a 34 percent share of the worldwide market. Amazon also is ranked second in PaaS, behind salesforce.com, which accounts for 21 percent of the worldwide market.

That should suggest both how concentrated the IaaS market is, with just two firms holding 55 percent market share.


Other related parts of the market, such as managed hosting and colocation, are highly fragmented. Rackspace, Verizon, NTT (News - Alert), British Telecom, IBM, France Telecom-Orange, SingTel and China Telecom all have market share of five percent or less.

Equinix is the clear leader in colocation with an 11 percent market share, but also features a wide range of competitors, none with more than single-digit share.

In the content delivery networks segment, Akamai (News - Alert) and Level 3 have about 44 percent market share, Synergy Research says.

Service providers widely believe cloud computing will be an important source of new revenue, and there is truth to that belief, but possibly not the way many are thinking about the business.

Cloud computing includes a number of discrete potential revenue streams, ranging from direct retail sales of applications to end users, either consumer or business. There is the rental of computing cycles and storage capability, as well as "platform" as a service, where a customer might rent an applications environment, often for purposes of developing new apps, for example.

By most current projections, SaaS will represent the biggest business, representing the most revenue. IaaS might be the next biggest, while PaaS will remain the smallest business, in terms of revenue. One forecast by the Yankee Group (News - Alert) has SaaS representing perhaps 70 percent of total revenue in 2013.

North America, specifically the U.S., currently represents the largest opportunity for SaaS, and it is the most mature of the regional markets, Gartner (News - Alert) argues. SaaS software revenue is forecast to total $9.1 billion in 2012, up from $7.8 billion in 2011, Gartner says. But that is revenue earned by software suppliers, not directly by hosting companies, data center providers or telcos.

North America shows the highest SaaS deployments in expense management, financials, e-mail and office suites, for example. It might be prudent to discount the notion that cloud computing revenue for service providers running data centers will capture very much of that sort of revenue.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO Miami 2013, Jan 29- Feb. 1 in Miami, Florida.  Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.




Edited by Brooke Neuman

Article comments powered by Disqus

Related CaaS Articles

Mitel Tries Again to Score ShoreTel Acquisition

Mitel, a cloud communications provider, has announced that it has made a proposal to ShoreTel's board of directors to acquire all of its outstanding common stock after an earlier proposal to acquire the business phone system company failed earlier this month. [ Read More ]
10/20/2014

Celerant Technology Completes Successful 15 Years in Retail Technology Market

Celerant Technology, a retail technology provider offering multi-channel integration to retailers across all industries, is currently celebrating the occasion of successfully completing 15 years as a specialist in the a retail technology market. [ Read More ]
10/16/2014

Toshiba's VIPedge Application Service: UM & UC in the Cloud

Toshiba America Information Systems Inc., Telecommunication Systems Division is offering a new and simpler option for adding more advanced applications to a premises-based telephony system. Customers that deploy a Toshiba business phone system on-site can now access messaging, mobility and unified communications services in the cloud. The new Toshiba VIPedge Application Service makes Unified Messaging (UM) and Unified Communications (UC) applications available "as-a-service" for a monthly subscr… [ Read More ]
10/16/2014

Gartner Names Orange Business Services a UCaaS Leader

Orange Business Services is one of the strongest companies around when it comes to the unified communications as a service market. In particular, the firm is among 21 unified communications as a service (UCaaS) providers that have different levels of geographic coverage, richness of services and scalability. Of those 21 companies in a recent report by Gartner, only Orange was named as being in the Leaders quadrant. Leaders in this particular business market are assessed by Gartner both on their … [ Read More ]
10/15/2014

Events

Weekly Live Demo
CaaS Small Center

Register Today!


Weekly Live Demo
Contact Center Solutions

Register Today!