Sizing the Cloud Computing Market

[tweetmeme source=@LouisColumbus only_single=false]

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 released a report this month that states worldwide revenue from public IT cloud services exceeded $16 billion in 2009 and is forecast to reach $55.5 billion in 2014, representing a compound annual growth rate (CAGR) of 27.4 percent.  Source: IDC Worldwide and Regional Public IT Cloud Services 2010-2014 Forecast

• 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/