CaaS Featured Article

Cloud Services to Reach $100B Globally by 2016: IDC

December 31, 2012

Oh, how far cloud services have come.

What once was a crazy idea championed by Oracle founder Larry Ellison (News - Alert) and others is now expected to become a $100-billion industry by 2016, according to a new study by IDC (News - Alert).

 Currently cloud services account for $40 billion worldwide.

"The IT industry is in the midst of an important transformative period as companies invest in the technologies that will drive growth and innovation over the next two to three decades," Frank Gens, senior vice president and chief analyst at the company, said in a statement by IDC.

"By the end of the decade, IDC expects at least 80 percent of the industry's growth, and enterprises' highest-value leverage of IT, will be driven by cloud services and the other 3rd Platform technologies," he added.

Public IT cloud services will experience a compound annual growth rate (CAGR) of 26.4 percent through 2016 – five times the IT industry overall – as companies accelerate their shift to the cloud services model for IT consumption.

All major verticals were examined, including financial services, manufacturing and resources, services, distribution and retail, communications and media, government, education and healthcare.

One of the fastest-growing verticals in the cloud services sector is communications and media, the report noted. The report said that the media portion of the communications and the media vertical are and continue to be the main users of storage on demand to “enable continuous service for content-heavy customer offerings,” according to an article in Integration Developer News.

“According to our research, the three verticals that accounted for more than 50 percent of the spending in 2011 are discrete manufacturing, professional services, and process manufacturing,” noted Eileen Smith, program manager in IDC’s Global Technology (News - Alert) and Industry Research Organization. “This is not surprising as these industries are typically less risk averse and compliance focused.”

The reported found that the largest sector, services and distribution, accounted for more than 30 percent of total revenue in 2011, and professional services alone accounted for nearly 40 percent of the entire category in 2011.

The second-largest vertical, manufacturing and resources, accounted for 24 percent of total public IT cloud services in 2011. Discrete manufacturing accounted for 46.7 percent.

Also, noted Integration Developer News, infrastructure accounted for more than 12 percent of spending in 2011, and will account for nearly 13 percent by 2016.

The United States is expected to remain the largest public cloud services market followed by Western Europe and Asia/Pacific, not including Japan, the report suggests. When it comes to public IT services spending, however, the fastest growth is expected to come from emerging markets, which will see its collective share nearly double by 2016 when it will account for almost 30 percent of net new public IT cloud services spending growth.

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 Braden Becker

Article comments powered by Disqus

Related CaaS Articles

Avaya Receives NorthFace Scoreboard Award from Omega Management

Avaya announced on Monday that Omega Management had given it the NorthFace Scoreboard (NFSB) Award for Customer Service Excellence for 2014. According to Omega, it reviews customer satisfaction survey results from more than 500 companies to determine which companies will earn the award. In order for a company to be considered for the award, it must complete and submit Omega's NFSB Questionnaire, which evaluates the company's survey methodology. [ Read More ]
03/24/2015

NetFortris Targets Retailers with New Cloud Communications Bundle

Retail business may understand the benefits and cost advantages of cloud communications solutions, but many are reluctant to adopt these offerings due to fear of complicated setup and maintenance. Yet many retailers would greatly benefit from the convenience, low price point and incredible flexibility of cloud offerings. [ Read More ]
03/23/2015

MAR Pizza Group Enhances Performance with Unified Office Total Connect Now Service

The late New York City Mayor Ed Koch used to greet press and constituents with his trademark, "How am I doing?" Given the importance of being able to leverage information in the incredibly competitive quick restaurant service (aka "fast food") business, that question has taken on tremendous relevance. It has led leading-edge franchise owners to invest in next generation communications solutions that can provide timely analytics to gain a competitive edge. [ Read More ]
03/17/2015

Barracuda's Solutions Are Now Certified for the vCloud Air Cloud Platform

Barracuda Networks, a provider of cloud-based security and storage solutions, has achieved VMware Ready - vCloud Air status for several of its products: Barracuda NG Firewall, Barracuda Message Archiver, Barracuda Spam Firewall and Barracuda Web Application Firewall. [ Read More ]
03/16/2015

Events

Weekly Live Demo
CaaS Small Center

Register Today!


Weekly Live Demo
Contact Center Solutions

Register Today!