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Cloud computing market to hit $121.1 billion by 2015
Aharon Etengoff | Mon 11th Oct 2010, 07:57 pm
The global cloud computing market is projected to reach a staggering $121.1 billion by 2015.
According to MarketsandMarkets, the lucrative sector will increase from $37.8 billion in 2010 to $121.1 billion in 2015 at a CAGR of 26.2% from 2010 to 2015.
“Cloud computing not only reduces business costs, but also makes applications accessible from any location, [while] reacting swiftly to changes in business needs,” the research firm explained.
“[Although] interoperability and data security issues may hinder market growth, the future of cloud computing seems promising with IT giants such as IBM, Google, Microsoft and Salesforce.com [all] actively developing new [platforms] to address existing issues.”
Meanwhile, IDC VP David Tapper noted that the trend towards outsourcing cloud services will “dramatically” alter the current paradigm for both outsourcers and providers.
“Access to new delivery models (e.g., cloud, software as a service [SaaS]) is becoming very important. This increased need to use these new models is going to significantly elevate customer expectations regarding the performance of their providers and subsequently change their relationship with providers.
“[To be sure], changing customer expectations will require that providers, particularly ‘traditional’ outsourcers such as – IBM, HP, CSC, Accenture, Wipro, TCS, Infosys, Capgemini, and Fujitsu – radically alter their current outsourcing business models.”
Tapper also emphasized that the Great Recession has proven the need for companies to be “much more adaptable” to the changing market.
“[Clearly], this fundamental need is a major force driving considerable shifts in the outsourcing industry,” he said.
“[Such] shifts not only involve provisioning more targeted and innovative solutions – but also [entail] the transformation of the outsourcing industry from a labor-centric model of service delivery to more asset-based services involving cloud-based outsourcing.”
He added that players hoping to compete successfully in the market for outsourced cloud services will be required to develop “robust road maps” of how customers are looking to adopt utility-based services which cut across “entire organization requirements.”
“[For example], many outsourcers and providers will need to make radical adjustments to their delivery capabilities, partnership ecosystems, business models and service offerings.
“They will also [be required] to extend their view of who they are and who they will be competing with, [both] within and beyond the traditional market of IT and business process services.”