Mass centralized outsourcing of IT and processes gains momentum
ECM Plus – Renub Research’s new report, entitled ‘Cloud Computing – SaaS, PaaS, IaaS Market, Mobile Cloud Computing, M&A, Investments, and Future Forecast, Worldwide’ has just published a new market reports
According to the report, a major shift in the way companies are obtaining software and computing capacity is under way. More companies are outsourcing into web-based applications.
The report said that cloud computing, in their view, referred to both the applications delivered as services over the Internet and the hardware and systems software in the data centres that provide those services.
It said cloud computing was accessing computer resources provided through networks rather than running software or storing data on a local computer.
A raft of big corporate providers including Amazon, Salesforce.com, Oracle and others are offering clients use the Internet to access everything from extra server space to software that helps manage customer relationships.
Such mass centralisation is akin to the mainframe-dumb terminal paradigm of yesteryear.
According to the report, the worldwide cloud computing market is growing at a rapid rate and is expected to exceed $25 billion by the end of 2013.
The different segments of the cloud computing market (SaaS, PaaS, IaaS) show different maturities and adoption rates, the report stated. The various segments within the SaaS market will grow at a different rate.
The fastest growing segments in SaaS are Content, Communications and Collaboration (CCC), Customer Relationship Management (CRM), Enterprise Resource Planning (ERP) and Supply Chain Management (SCM). PaaS generates market revenue of approximately 1.5% of the total application development market in the year 2008. IaaS is increasingly becoming popular with computing resources integrating as web service. The IaaS service providers can support a large number of customers with a single infrastructure.
Key findings in the report also found that the Software-as-a-Service market was growing at a rate pf 17.04 percent and exceeded $9 billion by the end of last year.
The Enterprise Resource Planning (ERP) and Content, Communications and Collaboration (CCC) segment together contributed 58 percent to the SaaS market in 2009. The Customer Relationship Management (CRM) market exceeded $2 billion in 2009, while SaaS-based ERP sales crossed $1 billion by the end of last year also.
Additionally, the report found that the Supply Chain Management (SCM) market in SaaS had exceeded $850 million by year end 2009, while the Office Suites market size was expected to increase at a compound annual growth rate of 55.02 percent for the period 2010 to 2013.
The report said it expected Platform-as-a-Service (PaaS) will reach $400 million by the 2013. and that the Infrastructure-as-a-Service (IaaS) market would further rise at a CAGR of 52.53 percent from 2010-2013.
Mobile Cloud Computing subscribers will increase at a CAGR of 69.02 percent for the period 2010-2014.
In addition, the report revealed tha US Federal IT budget devoted to cloud computing Spending would reach nearly $1 billion by 2014.
It added that cloud computing efforts by governments in the UK, the European Union, Japan and China would see the number of data centres growing an average of 9 percent per annum and is expected to continue until 2020.