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Posts from the ‘SaaS Forecasts’ Category

Roundup Of Cloud Computing Forecasts And Market Estimates Q3 Update, 2015

  • cloud computing forecastThe global SaaS market is projected to grow from $49B in 2015 to $67B in 2018, attaining a CAGR of 8.14%.
  • Global spending on Infrastructure-as-a-Service (IaaS) is expected to reach $16.5B this year, an increase of 32.8% from 2014.
  • Cloud applications will account for 90% of worldwide mobile data traffic by 2019, compared to 81% at the end of last year.

These and other insights are from recent cloud computing forecasts and market estimates published by research and advisory consultancies including International Data Corporation (IDC), Forrester, Gartner, Ovum, Wikibon and others.

While the methodologies differ significantly, the findings from a recent Economist Intelligence Unit study provide the galvanizing thread across this diverse set of data.  The Economist found that the most mature enterprises are now turning to cloud strategies as a strategic platform for growing customer demand and expanding sales channels. The study found low-maturity or lagging cloud adopters focus on costs more than growth.

Key take-aways from the round-up are provided below:

cloud mobile data

  • 57% of IT architects and tech professionals are running apps on the Amazon Web Services (AWS) platform today.  Rightscale’s 2015 State of the Cloud Report found that AWS adoption is over 4X greater than Microsoft Azure IaaS and 5X that of Rackspace Public Cloud.  Rightscale found that AWS, Microsoft Azure IaaS, Azure PaaS, Rackspace Public Cloud and VMWare vCloud Air are the top five public cloud platforms used in enterprises today. Source: RightScale 2015 State Of The Cloud Report

Public Cloud Usage

paas market trends

PaaS Market Share

  • Goldman Sachs is forecasting the cloud infrastructure and platform market will grow at a 19.62% CAGR from 2015 to 2018, reaching $43B by 2018. Their recent market analysis also forecasts that the global market for cloud infrastructure and platforms will grow from $21B this year to $43B by the end of the forecast period.  Source:  How Big Can The Amazon Web Services Business Grow In The Future?

goldman sachs cloud computing

IaaS Market Window

cloud maturity

hosted private cloud computing adoption

  • 46% of surveyed firms in the European Union (EU) are using advanced cloud services relating to financial and accounting software applications, customer relationship management or to the use of computing power to run business applications. In 2014, almost twice as many firms used public cloud servers (12%) versus private cloud servers (7%). The following graphic illustrates the degree of dependence on cloud computing, by economic activity, EU-28, 2014. Source: Eurostat Statistics Explained.  Cloud computing – statistics on the use by enterprises.

degree of dependence

  • 64% of Small & Medium Businesses (SMBs) are already using cloud-based apps, with average adoption being 3 apps.  78% of businesses indicate that they are considering purchasing new solutions in the next 2-3 years creating the potential to move the average number of applications used to 7, with 88% consuming at least one service.  Source: The small business revolution: trends in SMB cloud adoption.

cool infographic

  • Worldwide spending on enterprise application software will grow 7.5% to reach $149.9B in 2015, increasing to more than $201B in 2019 with accelerating cloud adoption driving new software sales. Gartner’s analysis of enterprise software spending shows that alternative consumption models to traditional on-premises licenses are accounting for more than 50% of new software implementations; these include SaaS, hosted license, on-premises subscriptions and open source.  Gartner also predicts that by 2020, about a quarter of organizations in emerging regions will run their core CRM systems in the cloud, up from around 10 percent in 2012. Source: Gartner Says Modernization and Digital Transformation Projects Are Behind Growth in Enterprise Application Software Market.

Additional resources:

10 Ways Analytics Are Accelerating Digital Manufacturing

  • 42% of manufacturers say big data and analytics as their highest priority in 2015.
  • 56% of power distribution providers rank big data and analytics within their top three priorities for 2015.
  • 61% of aviation companies consider big data and analytics their highest priority this year.

Bottom line: Digital manufacturing strategies are gaining ground as manufacturers adopt big data and analytics to improve operational effectiveness, time-to-market, new product development and increase product quality and reliability.

Analytics Are Fueling Digital Manufacturing Growth

Big data and analytics adoption by manufacturers is the first step many are taking to create a galvanized, intelligent digital thread that unifies every aspect of their value chains. For aerospace manufacturers whose supply chains are exceptionally complex, big data and analytics are revolutionizing value chains starting with suppliers and progressing through all operations.

The majority of manufacturers are relying on analytics to improve order accuracy, shipment & cycle time performance, and product quality. Those excelling at digital manufacturing strategies are gaining additional analytical insights into how they can make decisions more accurately, quicker and with lower potential costs and risks.

The manufacturing industry generates more data than any other sector of the global economy on a consistent basis.   The more complex a given manufacturers’ operations are, the more valuable the insights gained from big data and analytics. The following comparison of big data analytics priorities by industry from a recent speech given by Jeff Immelt, CEO and President of General Electric illustrates this point:

analytics customer survey

Source: GE Minds and Machines Presentation, Jeff Immelt, CEO & President, General Electric.

10 Ways Analytics Are Accelerating Digital Manufacturing 

The ten ways analytics is accelerating digital manufacturing adoption globally include the following:

  • Providing real-time operator intelligence (70%), remote monitoring and diagnostics (66%), and condition-based maintenance (59%) are the three most valuable areas for analytics GE customers mentioned in a recent survey. GE’s industrial customers are looking to tailor pre-built applications that can deliver the eight different functional areas shown in the graphic below.  Manufacturers are looking to asset performance management as an integral part of their digital thread’s analytics and insight.

industrial customer perspective

Source: GE Minds and Machines Presentation, Jeff Immelt, CEO & President, General Electric.

  • Using data modeling to improve production workflows is improving Earnings Before Interest & Taxes (EBIT) by 55% for a chemical manufacturer.  Using analytics and data modeling to make more accurate,  efficient decisions encompassing making or buying ingredients, choosing to substitute an ingredient or not, optimizing equipment usage and/or reliability and gaining incremental sales through increased production capacity is leading to a significant improvement in EBIT for a leading chemical manufacturer on a consistent basis.  The following graphic provides insights into the contributions of each factor in improving EBIT performance.

EBIT Growth

Source: Taming manufacturing complexity with advanced analytics. McKinsey & Company by Patrick Briest, Valerio Dilda, and Ken Somers February 2015. 

  • Planning-execution integration in production centers and real-time production integration are two areas where analytics are having the greatest impact on manufacturers’ operating expenses (OPEX). When analytics are integrated as part of a digital manufacturing strategy, supply chains benefit when Web-EDI (Electronic Data Interchange) and real-time order conformation are implemented and analyzed for continual improvement.

Digital initaitves impact

Source: Operational Excellence through Digital in Manufacturing Industries. Capgemini Consulting.

  • Optimization tools (56%), demand forecasting (53%), integrated business planning (48%) and supplier collaboration & risk analytics (46%) are being rapidly adopted by manufacturers today, setting the foundation for digital manufacturing growth.  Deloitte recently interviewed supply chain executives regarding the thirteen fastest-moving technical capacities they are using today and expect to use in the future. The following graphic provides an overview of supply chain capabilities current in use and what percent of each they expect to use in the future.

use of supply chain capabilities

Source: Supply Chain Talent of the Future Findings from the third annual supply chain survey. Deloitte.  2015.

  • Analytics is integral to making the vision of Industrie 4.0 a reality. Industrie 4.0 is a German government initiative that promotes automation of the manufacturing industry with the goal of developing Smart Factories. Analytics is extensively used in manufacturing centers who are in the process of reengineering their entire operations to attain Industrie 4.0 compliance. Manufacturing value chains in highly regulated industries that rely on German suppliers and manufacturers are also relying on analytics extensively to guide their Industrie 4.0 journey. A recent Deloitte study of Industrie 4.0 adoption found that research and development (43%) will see the greatest transformational contribution from Industry 4.0.

Industry 4.0 areas

Source: Industry 4.0: Challenges and solutions for the digital transformation and use of exponential technologies. Deloitte Consulting, 2015

  • Analytics is enabling manufacturers to also scale real time cloud-based operational intelligence, condition-based monitoring, monitoring & diagnostics and asset lifecycle management across global manufacturing centers.  Capturing, aggregating, analyzing and taking action on analytics across all production centers using the GE Predix Cloud will also accelerate digital manufacturing growth over time.  Integrating analytics, industrial and sensor data into a scalable series of data models and apps delivered as a Platform-as-a-Service (PaaS), GE will make this service commercially available in 2016.  The following graphic illustrates how complex manufacturers could use Predix Cloud to improve operational efficiency and quality.

horizontal capability controls

Source: Jeff Immelt Presentation on Pivot Strategy, December 16, 2014

  • Analytics is providing greater insights into product, process, program and service quality, forcing manufacturers to revamp existing production centers and make them more efficient.  Gaining greater insight into which production centers and factories are delivering the highest quality products and why is now possible.  The vision of unifying quality across an enterprise quality management and compliance (ECQM) framework is now a reality, driving greater digital manufacturing growth as a result. The following graphic from Tableau is an example of a manufacturing quality dashboard.

Mfg quality dashboard

Source: Manufacturing Analytics Quality Dashboard

  • Increasing production yields through the use of more effective supplier quality management and bill of material (BOM) planning integrated within production processes.  Analytics is extensively being used today for supplier audits, supplier quality management and traceability. Capitalizing on the full value of these analytics is a strong catalyst for manufacturers to move closer to digitizing their operations.
  • Using analytics to predict machine failures before they occur reduces downtime, production costs and increase customer satisfaction.  In highly regulated industries production equipment is periodically audited and reviewed for conformance to specific standards.  Integrating even the simplest sensor into production equipment can deliver valuable insights into what factors cause it to fail.  Analytics are providing Failure Mode and Effects Analysis (FMEA) in real-time today, providing manufacturers with a glimpse into which equipment and machinery will most likely fail when. Knowing this can save literally millions of dollars in lost production time.
  • Adopting Pareto Analysis to continually improve schedule, quality and cost performance to the cell or production center level is driving digital manufacturing adoption.  Determining which factors are enhancing or reducing product, process and program quality is now possible using advanced manufacturing analytics. Differentiating between the many symptoms of a quality problem and its root cause is now becoming possible, especially for companies pursuing digital manufacturing strategies.

Additional sources of information on the impact of analytics on digital manufacturing:


55% of Enterprises Predict Cloud Computing Will Enable New Business Models In Three Years

  • NYC Skyline Louis Columbus69% of enterprises expect to make moderate-to-heavy cloud investments over the next three years as they migrate core business functions to the cloud.
  • 44% of enterprises are relying on cloud computing to launch new business models today, predicting this will increase to 55% in three years.
  • 32% are using cloud computing to streamline their supply chains today. Senior executives predict this figure will increase to 56% in three years, a 24% increase.
  • 59% say they use cloud-based applications and platforms to better manage and analyze data today, reflecting the increasing importance of analytics and big data enterprise-wide.

These and other insights are from a recent Oxford Economics and SAP study of cloud computing adoption, The Cloud Grows Up. You can find the study here (no opt-in). In late 2014, Oxford Economics and SAP collaborated on a survey of 200 senior business and IT executives globally regarding the adoption and use of cloud technology. Oxford Economics’ analysts compared the latest survey with one completed in 2012 looking for leading indicators of cloud adoption in enterprises. They found many C- and VP-level executives are taking a more pragmatic, realistic view of what cloud technologies can contribute. Enterprises are moving beyond the hype of cloud computing, putting in the hard work of launching new business models while driving top-line revenue growth.

Oxford Economics has made two interactive infographics available from the study here. The first details cloud adoption, and the second, on how enterprises see cloud computing changing their business models over the next three years.  As cloud platforms and applications become a scalable, secure and for the most part reliable, once-elusive enterprise goals and new business models become attainable.

Key take-aways from the study include the following:

  • Top–line growth (58%), collaboration among employees (58%), and supply chain (56%) are the three areas enterprises expect cloud computing to impact most in three years. The greatest gains will be in the areas of supply chain (a 24% jump), collaboration among employees (20%) and increased agility and responsiveness to customers (17%). The following graphic compares where enterprises are seeing cloud computing’s impact today and a prediction of each areas’ impact in three years.

Figure 2

  • Developing new products & services (61%), new lines of business (51%) and entering new markets (40%) are three key areas cloud computing is transforming enterprises.  With a 35% increase, developing new products and services is the most dominant strategy enterprises are relying on to grow their businesses. See the comparison below for further details.       

developed new services using cloud computing 2

  • 58% of enterprises predict their use of cloud computing will increase top-line revenue growth in three years. 67% see the cloud changing skill sets and transforming the role of HR. The following graphic illustrates the first of two interactive infographics Oxford Economics and SAP are providing with the report. You can access the infographic here.

clouds enduring promise

  • 74% of enterprises say innovation and R&D is somewhat or mostly cloud-based. 61% say they will have developed new products and services in three years as a result of adopting cloud technologies.  The following graphic illustrates the second of two interactive infographics Oxford Economics and SAP are providing with the report. You can access the infographic here.

infographic the cloud grows up

  • Enterprise cloud security strategies are maturing rapidly. From 2012 to 2014, strategies for ensuring the security of API and interfaces increased 24%, from 20% to 44%. Additional concerns that increased include virus attacks (up 19%), and identity theft (up 16%).  The following figure compares the top concerns enterprises have in the area of cloud security.

cloud security

  • 31% of respondents say the cloud computing has had a transformative impact on their business.  48%, nearly half, state that cloud computing has had a moderate impact on business performance. The majority believe cloud computing will have a significant impact on top-line revenue growth in three years.

Figure 31

  • 67% of enterprises say that marketing, purchasing, and supply chain are somewhat and mostly cloud-based as of today. Cloud-based adoption has reached an inflection point in enterprises, with functional areas having the largest percentage of workloads running on cloud-based apps. Enterprise senior executives see the potential to improve innovation, R&D, and time-to-market via greater collaboration using cloud technologies.


2015 Roundup Of Cloud Computing Forecasts And Market Estimates

AA046808Global SaaS software revenues are forecasted to reach $106B in 2016, increasing 21% over projected 2015 spending levels.  A Goldman Sachs study published earlier this year projects that spending on cloud computing infrastructure and platforms will grow at a 30% CAGR from 2013 through 2018 compared with 5% growth for the overall enterprise IT.

Centaur Partners and other firms mentioned in this roundup are seeing more enterprise-size deals for cloud computing infrastructure and applications. While each of these consultancies and research firms have varying forecasts for the next few years, all agree that cloud computing adoption is accelerating in enterprises on a global scale.

Key take-aways from the roundup are provided below:

  • By 2018, 59% of the total cloud workloads will be Software-as-a-Service (SaaS) workloads, up from 41% in 2013.  Cisco is predicting that by 2018, 28% of the total cloud workloads will be Infrastructure-as-a-Service (IaaS) workloads down from 44% in 2013. 13% of the total cloud workloads will be Platform-as-a-Service (PaaS) workloads in 2018, down from 15% in 2013.  The following graphic provides a comparative analysis of IaaS, PaaS and SaaS forecasts from 2013 to 2018. Source:  Cisco Global Cloud Index: Forecast and Methodology, 2013–2018. (PDF, free, no opt-in).

Image Cisco SaaS IaaS PaasS Results

  • Centaur Partners’ analysis of SaaS & cloud-based business application services revenue forecasts the market growing from $13.5B in 2011 to $32.8B in 2016, attaining a 19.5% CAGR. Centaur provides a useful overview of current market conditions including M&A activity in their latest market overview published this month, Introduction to Centaur Partners: SaaS Market Overview, (PDF, free, no opt-in).

centaur partners forecast

Top Five Tech Spending Increases

  • Global SaaS software revenues are forecasted to reach $106B in 2016, increasing 21% over projected 2015 spending levels.  Spending on integration, storage management, and database management systems are projected to experience the greatest growth in 2015. These and other key insights are from Forrester’s SaaS software subscription revenue by category show below.  Source: Enterprise software spend to reach $620 billion in 2015: Forrester.

Global SaaS Forecast Forrester

  • $78.43B in SaaS revenue will be generated in 2015, increasing to $132.57 in 2020, attaining a compound annual growth rate (CAGR) of 9.14%.  The following graphic and table provides an overview of Forrester’s Global Public Cloud Computing market size analysis and forecast for the years 2011 to 2020. Source: Institut Sage. 

Global Forecast Public Cloud Forrester

Goldman Cloud TAM

Goldman Cloud Disrupting Traditional IT

SMAC Areas

  • IDC predicts that by 2016, there will be an 11% shift of IT budget away from traditional in-house IT delivery, toward various versions of cloud computing as a new delivery model.  By 2017, 35% of new applications will use cloud-enabled, continuous delivery and enabled by faster DevOps life cycles to streamline rollout of new features and business innovation. Source: 2015-2017 Forecast: Cloud Computing to Skyrocket, Rule IT Delivery.
  • By 2018, IDC forecasts that public cloud spending will more than double to $127.5 billion. This forecast is broken down as follows: $82.7 billion in SaaS spending, $24.6 billion for IaaS and $20.3 billion in PaaS expenditures.  Source: Forecasts Call For Cloud Burst Through 2018.
  • By 2016 over 80% of enterprises globally will using IaaS, with investments in private cloud computing showing the greater growth. Ovum forecasts that by 2016, 75% of EMEA-based enterprises will be using IaaS.  These and other insights are from the presentation, The Role of Cloud in IT Modernisation: The DevOps Challenge (free PDF, no opt in). The graphic below provides an analysis of cloud computing adoption in EMEA and globally.

Ovum Cloud Adoption Forecast

SaaS for SCM

Enterprise cloud revenues

  • By 2018, more than 60% of enterprises will have at least half of their infrastructure on cloud-based platforms.  These and other are insights are from the keynote Cloud Business Summit presentation Digital Business, Rethinking Fundamentals by Bill McNee, Founder and CEO, Saugatuck Technology.  Source: Digital Business, Rethinking Fundamentals.

new platform

45% of Global Enterprises Are Running Production-Level Cloud Apps Today

cover graphicMicrosoft’s latest study shows enterprises’ pace of cloud computing adoption continues to accelerate.  Nearly half of the respondents (45%) report they have cloud-based applications running in production environments.  58% report that they selectively target new applications and projects for cloud computing.

Microsoft commissioned 451 Research to complete one of the most comprehensive global surveys to date of hosting and cloud computing, titled Hosting and Cloud Go Mainstream releasing the results earlier this month. The 74 page slide deck of results provides a wealth of insights into the current and future state of hosting and cloud computing.  451 Research constructed the methodology to include interviews with 2,000 companies and organizations of all sizes from 11 countries, with more than a third of respondents coming from the United States.  Microsoft and 451 Research provided the slides showing the result of screener questions, which provides a useful context for analyzing the survey results.

Here are the key take-aways from the study:

  • 45% of enterprises globally are running production-level cloud computing applications today.  North America and Asia have the greatest percentage of enterprises reporting broad implementation of production cloud-based applications (17% each).  North America has the greatest percentage of enterprises in the discovery and evaluation phase of cloud computing adoption at 29%.

cloud computing adoption by region

  •  58% of global enterprises are selectively target new applications for cloud computing, with 18% heavily relying on cloud computing for new projects.  The following graphic shows the distribution of organizations’’ approaches to using cloud computing for new applications or IT projects.

New Apps By Region

  • SaaS (71%) and Hosted Infrastructure Services (69%) are the two most common IT services currently purchased today, with 14% growth forecasted in each by 2016. The fastest growing category is Platform-as-a-Service (PaaS), with 37% purchasing these services today projected to grow another 26% in two years.

current future it services

  • SaaS is most prevalent in enterprises with over 500 employees, and Hosted Infrastructure Services, in government and education.  Please see the graphic below for the distribution of responses by IT service and organization type.


current it services by company size

  • Spending on hosted private clouds will increase from 28% of spending today to 32% in 2016, with traditional dedicated infrastructure services dropping from 48% to 42%.

Hosted Infrastuctrure Services

  •  The majority of SaaS users are employees (45%) followed by businesses (which could be interpreted as suppliers and the broader supply chain) (22%), consumers (18%) and business partners (including distribution channels (14%).

primary application users


  • Telephone conversations with customer support specialists is the most valuable form of communication (just over 60%) across all support channels.  It is also the most preferred channel for SaaS support.

valuable forms of communication

  •  Business applications (17%), databases (14%) and e-mail 12%) are the top three application spending categories today in hosted and cloud applications.  The following graphic breaks out spending by hosting and cloud configuration.

hosted and cloud applications

  • Having a well-defined architecture for security (7.7 out of 8.0), understanding who the end-users are (7.6) and train users to be cautious with access & security (7.5) in addition to having a well-defined architecture for performance (7.5) are the three top best practices for cloud computing projects.

best practices cloud computing projects

  • 44% of enterprises globally have “shadow IT”, meaning business units are spending their own budget on cloud computing projects outside of the IT approval processes.  The following graphic provides the breakdown by type of organization included in the survey.

shadow it

  •  87% of respondents globally would recommend cloud computing to a peer or colleague and 13% would not. When asked why or why not, respondents most often mentioned a good experience and better service/it works (approximately 17%), followed by improving costs/cost effective/cheaper (approximately 16%).  Security issues and concerns (25%) and uncertainty/it’s too new (approximately 16%) are the reasons for not recommending cloud computing.

recommend cloud computing

Roundup of Cloud Computing Forecasts Update, 2013

tunnel-of-speed-forecast-of-saas-cloud-computing-final-300x201Time-to-market, more flexible support for business strategies by IT, and faster response time to competitive conditions are combining to accelerate cloud computing adoption today.

Of the enterprises I’ve spoken with over the last several months including several Fortune 500 corporations to small businesses just beginning to evaluate cloud-based CRM and manufacturing systems, one message resonates from all of them: they need enterprise applications that keep pace with how fast they want to move on new business strategies. The latest round of cloud computing forecasts reflect the urgency enterprises have of making IT a foundation for strategic business growth.

The following is a summary of the latest cloud computing forecasts and market estimates:

McKinsey Analysis

  • IDC predicts public IT cloud services will reach $47.4B in 2013 and is expected to be more than $107B in 2017. Over the 2013–2017 forecast period, public IT cloud services will have a compound annual growth rate (CAGR) of 23.5%, five times that of the IT industry as a whole. The growing focus on cloud services as a business innovation platform will help to drive spending on public IT cloud services to new levels throughout the forecast period. By 2017, IDC expects public IT cloud services will drive 17% of IT product spending and nearly half of all growth across five technology categories: applications, system infrastructure software, platform as a service (PaaS), servers, and basic storage. Software as a service (SaaS) will remain the largest public IT cloud services category throughout the forecast, capturing 59.7% of revenues in 2017. The fastest growing categories will be PaaS and Infrastructure as a service (IaaS), with CAGRs of 29.7% and 27.2%, respectively.  Source: IDC Forecasts Worldwide Public IT Cloud Services Spending to Reach Nearly $108 Billion by 2017 as Focus Shifts from Savings to Innovation.

IDC Forecast Public IT Spending

  • Informatica’s presentation titled Enable Rapid Innovation with Informatica  and MicroStrategy for Hybrid IT by Darren Cunningham, Informatica Cloud  and Roger Nolan, Informatica Data Integration and Data Quality contains a useful series of cloud market overviews supported by 451 Research Gartner, Forrester and IDC data.  A summary of the statistics section is shown below:


adoption graphic from KPMG

  • Gartner predicts that in the next five years enterprises will spend $921B on public cloud services, attaining a CAGR of 17% in the forecast period.  Darryl Carlton, Research Director, APAC with Gartner recently presented Cloud Computing 2014: Cloud Computing 2014: ready for real business?  His presentation is full of insightful analysis and market forecasts from Gartner, with specific focus on Asia-Pacific.
  • Visiongain predicts the Platform-as-a-Service (PaaS) submarket is valued at $1.9B in 2013 growing to $3.7B in 2018, attaining a 14.3% CAGR for the period 2013-2018.  The following figure shows the firm’s forecast.  Source: Visiongain on Slideshare.
  • Gartner predicts that in the next five years enterprises will spend $921B on public cloud services, attaining a CAGR of 17% in the forecast period.  Darryl Carlton, Research Director, APAC with Gartner recently presented Cloud Computing 2014: Cloud Computing 2014: ready for real business?  His presentation is full of insightful analysis and market forecasts from Gartner, with specific focus on Asia-Pacific.
  • Visiongain predicts the Platform-as-a-Service (PaaS) submarket is valued at $1.9B in 2013 growing to $3.7B in 2018, attaining a 14.3% CAGR for the period 2013-2018.  The following figure shows the firm’s forecast.  Source: Visiongain on Slideshare.

visiongain forecast


  • Boston Consulting Group writes that SaaS is a $15B market, growing at three times that rate of traditional software.  BCG estimates that SaaS is 12% of global spending on IT applications.  BCG interviewed 80 CIOs and found they were willing to consider SaaS solutions for 35% to 60% of their application spending.  BCG also evaluated how the economics of cloud software adoption vary for on-premises versus SaaS customers.  The following two charts from the completed study. Source: (Free, opt-in required) Profiting from the Cloud: How to Master Software as a Service

Profiting_Cloud_Ex1_lg_tcm80-138310 BCG Categories

Profiting_Cloud_Ex2_lg_tcm80-138309 BCG Economics

Asia Pacific Cloud Market Growth

Cloud Predictive Analytics Most Used To Gain Customer Insight

AnalyticsUsing analytics to better understand customer satisfaction, profitability, retention and churn while increasing cross-sell and up-sell are the most dominant uses of cloud-based analytics today.

Jim Ericson and James Taylor presented the results of Decision Management Solutions’ cloud predictive analytics survey this week in the webinar Predictive Analytics in the Cloud 2013 – Opportunities, Trends and the Impact of Big Data.  The research methodology included 350 survey responses, with a Web-based survey used for data collection.  The survey centered on the areas of pre-packaged cloud-based solutions, cloud-based predictive modeling, and cloud deployment of predictive analytics.  You can see a replay of the webinar at this link.

Key takeaways of the study results released during the webinar include the following:

  • Customer Analytics (72%), followed by supply chain, business optimization, marketing optimization (57%), risk and fraud (52%), and marketing (58%) are the areas in which respondents reported the strongest interest.
  • When the customer analytics responses were analyzed in greater depth they showed most interest in customer satisfaction (50%) followed by customer profitability (34%), customer retention/churn (32%), customer management (30%), and cross-sell/up-sell (26%).
  • Adoption was increasingly widespread and growing, with over 90% of respondents reporting that they expected to deploy one or more type of predictive analytics in the cloud solution.
  • Industries with the most impact from predictive analytics include retail (13% more than average), Financial Services (12%) and hardware/software (4%). Lagging industries include health care delivery (-9%), insurance -11%) and (surprisingly) telecommunications (-33%).  The following graphic illustrates the relative impact of cloud-based predictive analytics applications by industry.

Adoption of Cloud-based Predictive Analytics by Industry

  • The most widespread analytics scenarios include prepackaged solutions (52%), cloud-based analytics modeling (47%) and cloud-based analytic embedding of applications (46%).  Comparing the 2011 and 2013 surveys showed significant gains in all three categories, with the greatest being in the area of cloud-based analytic modeling.  This category increased from 51% in 2011 to 75% in 2013, making it the most likely analytics application respondents are going to implement this year.

Comparison of Analytics Applications Most Likely To Deploy, 2011 versus 2013

  • 63% of respondents report that when predictive analytics are tightly integrated into operations using Decision Management, enterprises have the intelligence they need to transform their businesses.

Impact of Predictive Analytics Integration Across The Enterprise

  • Data security and privacy (61%) followed by regulatory compliance (50%) are the two most significant concerns respondent companies have regarding predictive analytics adoption in their companies.  Compliance has increased as a concern significantly since 2011, probably as more financial services firms are adopting cloud computing for mainstream business strategies.

Concerns of Enterprises Who Are Using Cloud-based Predictive Analytics Today

  • Internal cloud deployments (41%) are the most common approach to implementing central cloud platforms, followed by managed vendor clouds (23% and hybrid clouds (23%). Private and managed clouds continue to grow as preferred platforms for cloud-based analytics, as respondents seek greater security and stability of their applications.  The continued adoption of private and managed clouds are a direct result of respondents’ concerns regarding data security, stability, reliability and redundancy.

Approach To Cloud Deployment

  • The study concludes that structured data is the most prevalent type of data, followed by third party data and unstructured data.
  • While there was no widespread impact on results from Big Data, predictive analytics cloud deployments that have a Big Data component are more likely to contribute to a transformative impact on their organizations’ performance.  Similarly those with more experience deploying predictive analytics in the cloud were more likely to use Big Data.
  • In those predictive analytics cloud deployments already operating or having an impact, social media data from the cloud, voice or other audio data, and image or video data were all much more broadly used as the following graphic illustrates.

Which Data Types Deliver The Most Positive Impact In A Big Data Context

Top Ten Cloud Computing Skills Recruiters Search For

cloud-computing-jobsI recently had the opportunity to speak with Jennifer Bewley and Rachel Ceccarelli of regarding the trends they are seeing in cloud computing recruiters’ searched-for terms on their sites.  They’re seeing exponential growth in cloud computing-related job listings today and provided an analysis of the top ten cloud computing skills recruiters are searching for.

From just 13 cloud computing-related jobs listed in May, 2008, their site has over 5,000 today.  The following graphic shows the growth in cloud computing job listings on their site over time.


The following are the top ten cloud computing skills searched for on as of today:

  • Linux operating system
  • Chef – The open-source systems management and cloud infrastructure automation framework
  • Puppet – IT automation software that helps system administrators manage infrastructure throughout its lifecycle, from provisioning and configuration to orchestration and reporting
  • Cloud, Legacy System and IT Consulting
  • SaaS Programming – Java is the number one search term on the site and is a common programming language cited in these searches.
  • Python
  • Perl
  • DevOps
  • Shell scripting
  • Ruby on Rails

Getting A 360-Degree View Of Potential Candidates

They also demonstrated Open Web, a unique new web application in beta right now that has the ability to aggregate all social networks, keywords, and published experience of technical professionals.  The accuracy and speed of Open Web is impressive; it’s been in beta since January and responds like a production-ready app.  Jennifer and Rachel mentioned that recruiters using Open Web today are seeing 30% response rates to their queries to in-demand technical professionals.

What’s unique about Open Web is that it provides a 360-degree view of potential candidates, including all social media they participate in, in addition to discussion boards and favorited or liked sites on Facebook. The following is what Open Web looks like today:

Bottom line:  Recruiting analytics and tools online are accelerating quickly, making it possible for companies searching for cloud computing talent to find it quicker than ever before.  For those searching for a job in the field, making every aspect of your online presence reflect cloud computing expertise can make you stand out in recruiter’s searches.

Note: isn’t now and has never been a client. I chose to write this post to serve readers who frequently ask me to research hiring trends in cloud computing.

Predicting Enterprise Cloud Computing Growth

69% of enterprises who have separate budgets for cloud computing are predicting spending increases this year and into 2014.

This is one of several key take-aways from a research study published today by TheInfoPro, a service of 451 Research.  TheInfoPro Wave 5 Cloud Computing Study is based on research completed in the first six months of 2013, and relies on live interviews with IT management and primary decision-makers in midsize and large enterprises in Europe and North America. You can view details of TheInfoPro Cloud Computing Overview Program and methodology here.

Additional key take-aways from the study include the following:

  • The worldwide cloud computing market will grow at a 36% compound annual growth rate (CAGR) through 2016, reaching a market size of $19.5B by 2016.
  • 38% of enterprises surveyed break out cloud computing budgets, while 60% include cloud-related spending as part of their enterprise-wide IT budgets.  TheInfoPro asserts that cloud computing’s benefits of greater business orchestration and reduced time-to-market have led to a change in budgeting approaches.
  • The median enterprise cloud computing budget is $675,000 and the mean enterprise cloud computing budget is $8,234,438.  The study found the largest enterprise cloud computing budget at $125M.  The following graphic provides a distribution of cloud computing budgets by range.


  • Internal Private Cloud (35%), Cloud Provider Assessments/Strategy Planning (33%), Infrastructure-as-a-Service (IaaS) (31%) and Software-as-a-Service (30%) are the top four cloud computing-related projects enterprises are working on right now.  Cloud Provider Assessments/Strategy Planning have seen the largest increase, attributable to more enterprises looking to better support strategic plans with more agile, efficient IT organizations.


  • 83% of enterprises face significant roadblocks that hold them back from moving beyond cost reduction to faster time-to-market and better orchestration of their businesses. Respondents mentioned that politics, budget, time and staff are the main sources of roadblocks to getting more value out of their cloud computing investments. The majority of these roadblocks are not related to IT.  They include lack of clarity regarding organization and budget (37%), resistance to change (16%) and lack of trust (visibility and reliability) (15%).  The following graphic illustrates the enterprise cloud journey as defined in TheInfoPro Wave 5 Cloud Computing Study.


  • Consistent with many other enterprise cloud computing surveys, security is the biggest pain point and roadblock to cloud computing adoption (30%).  Migration and integration of legacy and on-premise systems with cloud applications (18%) is second, and lack of internal process (18%) is third.  The following graphic shows a rank ordering of cloud computing-related pain points.


Top 12 Sites For Free Cloud Computing & Enterprise Software Research

campusOne of the most common questions I get from students is where they can find free cloud computing and enterprise software research.

Few if any of my students work for companies who have subscriptions with the top analyst firms however.  A small group of students are working on a start-up on the side and want to absorb as much market data as they can.

Many of my former students are also in IT management roles, and when they become interested in a specific cloud computing or enterprise topic over time, they write me and ask if I have any data on their subject of interest.  I keep the following list updated from them too.   To serve all these students I’ve been adding to the list shown below for a number of years. None of these companies are current or past clients and I hold no equity positions in any of them.

The requests are so prevalent in global competitive strategy courses I distribute this list at the beginning of the semester with the following disclaimers.

  • Many of the cloud computing and enterprise software companies pay to have white papers written and research done.  Writing white papers and doing research for an enterprise software vendor client is a very lucrative business for many industry analyst firms.  Ethical industry analysts will often insist that a disclaimer be included in the white paper and on the website stating that they and their firms were hired to write the paper or do the research and publish the report.
  • The reports are intellectual property of the firms publishing them.  Enterprise software vendors often pay tens of thousands of dollars at a minimum for reprint rights and the right to provide them on their websites.  I advise my students to seek out the copyright and quote policies of the research firm of interest if they plan on re-using the graphics in any published materials or in their blog posts.  One for example, the Gartner Copyright and Quote Policy is shown here.
  • Pay attention to the methodologies used in each report and realize they change over time.  This is especially the case with the  Gartner Magic Quadrant and MarketScopes. Gartner has been very active this year in refining the Magic Quadrant methodology for example.

The following are the list of cloud computing and enterprise software vendor sites that offer free downloads of cloud computing and enterprise software research:

  • Amazon Web Services – Amazon has purchased re-print rights to the Gartner Magic Quadrant for Cloud Infrastructure as a Service written by Lydia Leong, Douglas Toombs, Bob Gill, Gregor Petri, Tiny Haynes published on August, 19, 2013 in addition to the latest reports from Forrester on enterprise public cloud platforms and enterprise cloud databases. Link:
  • BMC Software – Many free reports from Gartner, Forrester, The 451 Group and other research firms covering advanced performance analytics (APA), cloud computing, IT Service Management and long-term technology trends. Link:
  • Computer Associates – An extensive collection of cloud computing and enterprise software research organized into the following categories: cloud; data management; energy and sustainability management; IT automation; IT security; IT service management; mainframe; project and portfolio management; service assurance and virtual organizations.  CA requires opt-in on the latest research as they use this site as part of their lead generation strategy.  Link:
  • Cisco Systems –  Data Center and Virtualization; includes the latest Current Analysis, Forrester, Gartner, IDC, Lippis and Yankee Group research reports covering Big Data, blade servers, cloud computing, Hadoop, unified data centers and many other topics.  Be sure to click across the Computing, Network, Orchestration/Automation,  and Network Services tabs to find additional research:   Link:
  • Hewlett-Packard – HP has invested primarily in networking-related analyst research including the latest studies and market frameworks from Forrester, Gartner, IDC and Infonetics Research.  Link:
  • Intel – Organized around the topic of designing a data center for the cloud, Intel is providing a series of research studies, reports, white papers and videos that provide insights into virtualization, networking, mobility and Intel-based servers running cloud architectures.  Link:
  • Microsoft – Balancing the need to support their enterprise applications today and create demand for cloud-based initiatives now and in the future, Microsoft’s series of analyst reports reflect their evolving business model.  Microsoft has licensed the latest research from Enterprise Strategy Group (ESDG), Forrester, Gartner, IDC, Ovum, Yankee Group and others listed on this site. Link:
  • Oracle – The most comprehensive collection of industry analyst research online for any enterprise software vendor, Oracle has hundreds of research reports available for viewing under their reprint licenses for free, and also for download.  The reports are organized into corporate, infrastructure, systems, services, solutions, industries, enterprise applications and regions.     Link:
  • Progress Software – Extensive collection of research from Bloor, Forrester, Gartner, IDC, Tabb Group, Ovum and other research firms are available for download from this site. Link:
  • SAS – The most extensive and well-organized online collection of analyst research on analytics and business intelligence (BI) available, SAS makes research available from fifteen analyst firms across six industries on this area of their website.  You can find the SAS Analyst Viewpoints section of their website here:
  • Symantec – Provides downloadable analyst reports in the areas of risk and compliance, endpoint security and management, information and identity protection, messaging security, backup and archiving, storage and availability management, services and emerging trends.  ESG, Info-Tech Research Group, Forrester, Gartner and IDC reports are on this page for download. Link:
  • Teradata – Extensive collection of industry analysis and research organized into the sections of Active Data Warehousing, Active Enterprise Intelligence, Enterprise Data Warehousing, Teradata Analytical Ecosystem and Teradata Integration Analytics.  The latest market frameworks from Gartner, Forrester, IDC and other research firms are available for download.  Link:

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