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Sizing the Cloud Computing Market

The pace of cloud computing market forecasts produced and announced is quickening, with several new projections announced this month.  In every one of these forecasts, the benefits of operating expense (OPEX) versus capital expense (CAPEX) financing play a role, as does the emerging trust in cloud computing as a viable platform.

Having long proven itself as a viable platform for Customer Relationship Management (CRM), there are early adopters throughout Supply Chain Management (SCM), Manufacturing Execution Systems (MES) and surprisingly, Enterprise Resource Planning (ERP).

Here are the highlights of the latest cloud computing forecasts.  Over time, I plan on comparing the methodologies of these forecasts and creating an ongoing forecast index.

  • Analysys Mason was quoted in Forbes this month, stating that the global market for enterprise cloud-based services will grow from $12.1 billion in 2010 to $35.6 billion in 2015.  The year-on-year growth rate will be 43% in 2011, but will decrease to 13% over the next five years. Software-as-a-service (SaaS) will account for 70% of revenue in 2010, while 30% will be related to infrastructure-as-a-service (IaaS). Source: Forbes
  • Gartner, in their report Forecast: Public Cloud Services, Worldwide and Regions, Industry Sectors, 2009-2014 published this month states that worldwide cloud services revenue will reach $68.3B in 2010 (includes public and private cloud services) reaching $148.8B in 2014.  The report also states that 60% of cloud services revenue over the last twelve months is from North America alone. Source: IT Channel Planet
  • Global Industry Analysts recently released their latest report “Cloud Computing: A Global Market Report” which provides a review of market trends, growth drivers and challenges. One key trend they have spotted is the emergence of Open Source Cloud Computing, which they predict will be a major factor in driving the growth of Cloud Computing Services to a predicted $222.5B by 2015.
  • International Data Corporation Worldwide Enterprise Server Cloud Computing 2010-2014 Forecast states that server sales as a result of cloud computing will grow from an $8.4 billion opportunity in 2010, representing over 600,000 units, to a $12.6 billion market in 2014, with over 1.3 million units.
  • TechSci Research states in their latest report that the market is expected to more than double by 2014 from an estimated market of US$ 20 Billion in 2009.
  • WinterGreen Research, in the report, Cloud Based Office Productivity Software Market Shares, Strategies, and Forecasts, Worldwide, 2010 to 2016, states that cloud productivity office computing markets at $3.3 billion in 2009 are anticipated to reach $17 billion by 2016.
  • In a second report also released this month, WinterGreen Research also predicted that IaaS, PaaS and SaaS software and services sales globally accounted for $20.3 billion in 2009, predicting a market size of $100.4 billion by 2016.

Flickr attribution: http://www.flickr.com/photos/wordman/72184625/sizes/m/

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5 Comments Post a comment
  1. Hi,

    Reading your blog for the first time. Looks interesting and I plan to explore it more.

    This post was pretty interesting. It would be nice if you could add more links to some of the prediction quotes, though, if you have them.

    - Vasudev

    August 24, 2010
    • Louis Columbus #

      Vasudev,

      Thank you for taking the time to read my blog, I hope you find it informative and interesting. I will strive to add 100% coverage of all forecast-oriented blog posts in the future based on your feedback.

      I find that using Google Alerts and also tracking SaaS and cloud computing trending with Google delivers insightful data points. A few of the forecasts I’ve mentioned have been on sites that sell market research reports. I didn’t want to direct readers to a few of those sites, as they often attempt to keep browsers on their pages. I tried to stay with news-based sources.

      You have made a great suggestion and I will keep it in mind when I write another post on market forecast updates.

      Thank you again for your time,

      Louis

      August 24, 2010
  2. Thanks, Louis.

    The point you mention about using Google Alerts was useful too.

    I understand and appreciate your reason for not wanting to direct readers to those sites that try to keep readers’ browsers on their pages. I don’t like that behavior myself.

    Looking forward to more interactions with you via your blog …

    Vasudev

    August 24, 2010

Trackbacks & Pingbacks

  1. » Origins & Thought Leaders in Cloud Computing: An Overview : Girls In Tech :
  2. Roundup of Cloud Computing Forecasts and Market Estimates, 2011 « A Passion for Research

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