Gartner’s latest Mobile App Store Worldwide Forecast predicts annual downloads will increase 59.38% from 64 billion in 2012 to 102 billion in 2013. Worldwide revenue is forecast to also increase 44.45%, from $18B in 2012 to $26B in 2013.
Here are additional key take-aways from the Gartner Mobile App Store Forecast that was published this week:
- Free applications are forecast to be 91% of all downloads in 2013, increasing to 94.5% by 2017. Paid-for downloads will grow at a Compound Annual Growth Rate (CAGR) of 14.22% from 2012 through 2017. The following table provided in the Mobile App Store Forecast announcement this week provides an overview of free and paid-for downloads by year.
- In-app purchases (IAP) are growing at a 27.83% Compound Annual Growth Rate (CAGR), increasing from 11% of revenue in 2012, projected to increase to 48% of app store revenue by 2017. IAP purchases are also projected to deliver 17% of store revenue in 2013, increasing to 48% in 2017. At the projected rate of growth in this forecast, it is reasonable to assume IAP will surpass paid-for and advertising-based approaches to downloading.
- 90% of global downloads in 2017 will be from Apple iOS and Google Android app stores. Gartner cites the large developer communities and expanding ecosystems for each of these mobile app stores as being catalysts of their growth.
- Average monthly downloads per Apple iOS device is projected to decline from 4.9 in 2013 to 3.9 in 2017. Gartner is also forecasting Google Android average monthly downloads to drop from 6.2 in 2013 to 5.8 in 2017.
Defining Cloud-Enabling Technologies (CET) as those that are installed, delivered and consumed on-premises, Market Monitor a service of 451 Research recently released their annual forecast of virtualization, security and automation and management revenue through 2016. The report, Market Monitor Cloud-Enabling Technologies has taken a bottoms-up approach in defining the three primary categories they include in their definition of cloud-enabling technologies. Market Monitor’s methodology is explained in the report’s summary here.
Here are the key take-aways from this report:
- Cloud-Enabling Technologies defined as virtualization, security and automation and management global revenues will grow from $10.6B in 2012 to $22.6B in 2016, attaining a 21% Compound Annual Growth Rate (CAGR).
- Cloud-as-a-Service revenues will grow from $5.7B in 2012 to $19.5B in 2016, attaining a 36% CAGR. Market Monitor defines Cloud-as-a-Service as externally delivered services, specifically 3rd party, that are hosted and pay-as-you-go with the cloud being relied on as a service delivery and consumption model. The following graphic provides a comparison of Cloud-as-a-Service and Cloud-Enabling Technologies revenue forecasts by year from 2012 through 2016.
- 451 Research forecasts that the majority of CET revenues will be from virtualization-based systems and services (66%). This segment is projected to attain a 16% CAGR in the forecast period and serve as the foundation of Phase I CET Adoption shown in the following graphic. Phase 2 of CET Adoption is projected to be dominated by the need for tools to manage and control virtualized environments. Phase 3 is projected to signal a shift to internal IT resources and internal IT cloud service providers.
I recently had the opportunity to speak with Jennifer Bewley and Rachel Ceccarelli of Dice.com 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 Dice.com 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 Dice.com site and is a common programming language cited in these searches.
- 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: Dice.com 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.
Developing the ability to upsell existing customers into longer-term, higher value contracts that are multi-year in duration is one of the most critically important skill sets any SaaS business needs to attain.
These and other insights were gained from analyzing the 2013 Pacific Crest SaaS Survey, published earlier this month by David Skok. The survey is based on responses from 155 SaaS companies, compiled by Pacific Crest Securities. David’s blog For Entrepreneurs provides excellent content on SaaS metrics, start-up advice and a wealth on insight in the areas of sales and marketing, business models and the specifics of how to manage a SaaS business model profitability.
Key take-aways from the 2013 Pacific Crest SaaS Survey include the following:
- Median GAAP revenue growth increased by 41% in 2012, projected to reach 47% in 2013 across all 155 SaaS companies included in the analysis. When smaller companies whose revenue growth projections are excluded, median revenue growth for 2012 was 32%, projected to increase to 36% this year. The following two figures illustrate distribution of revenue growth by number of companies.
- The fastest growing SaaS companies have median contract sizes that are between $1K to $25K. Companies’ with less than $2M in revenue were excluded from this analysis given the smaller deal sizes they generate.
- The larger the median ACV (Annual Contract Value) the greater the reliance on field sales. In results from previous surveys Pacific Crest found that mid-tier companies were more reliant on inside sales. 54% of respondents in the $5K to $25K ACV segment of companies this year are reliant on insider sales, up from 33% in 2012.
- 13% of new ACV is generated from upsells across all SaaS companies, with the largest capable of expanding into other departments and divisions of existing customers. SaaS companies with sales over $60M are generating 32% of new ACV from upsell strategies. It’s interesting to note that upsell is a more effective strategy at gaining market share versus marketing spending, and this hold true across sizes of SaaS companies. The following graphic illustrates percentage of new ACV by size of SaaS company and an analysis showing the fastest-growth SaaS companies generate a higher proportion of new ACV from upsells compared to their peers.
- 76% gross margins are being achieved across all respondents. This does not change significantly when smaller companies are removed from the analysis.
- Try-Before-You-Buy is used far more often than Freemium because it generates additional sales. The following graphic shows the expected contribution of each to ACV in 2013:
- Professional Services are 12% of 1rst year ACV across all customer segments. Selling professional services into the enterprise generates 23% of first year ACV according to the study. A graphic showing the distribution of first year ACV as a percentage of professional services by customer segment is shown below:
- SaaS companies who primarily rely on Internet-based distribution methods are attaining the highest growth rates. When companies with less than $2M in revenue were taken out of the analysis, those companies primarily based on inside sales grew 10% more than field sales. The following graphic presents this analysis, excluding companies with less than $2M in revenue.
- 37% of respondent companies rely on field sales as their primary means of distribution followed by inside sales (29%) and Internet sales (17%). When smaller companies with sales less than $2M are excluded, field sales jumps to 50% of all respondents using this method as a primary means of distribution. Inside sales (29%) and Internet sales (8%) are second and third. While Internet sales is the cheapest form of distribution, it also leads to the highest churn rates (9%) recorded in the survey.
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.
Gaining insights into cloud computing hiring trends is invaluable to understanding the competitive landscape and direction of new application and platform development.
It’s also invaluable for any company looking to recruit cloud computing professionals. For qualified job seekers, staying on top of these trends can and does lead to well-timed career moves, higher salaries and greater chances for professional growth.
Real-time business intelligence of the talent marketplace is a fascinating area to track. Wanted Analytics is a leader in this field, and their analytics applications and advanced data sets are used for competitive analysis, sourcing new hires, analyzing employment and economic trends, and lead generation. I’ve never worked for Wanted Analytics and they’re not a client. They were kind enough to provide a test-drive account for this analysis. The Wanted Analytics platform is based on 25,000 employment sources that together account for 950 million job posts.
Here are the key take-aways from an analysis of cloud computing job opportunities:
- For all positions that mention the term cloud computing as part of the description, requirements or prerequisites, the Hiring Scale is 72. The higher the score on the scale, the greater difficulty employers are having in finding the right applicants for their open positions. Wanted Analytics has published a white paper explaining the methodology of the Hiring Scale and you can download it here.
- Average salary range for cloud computing jobs is $90,650 to $110,800 according to the Wanted Analytics.
- There are 10,077 positions open at 1,447 employers, with the average posting period being 47 days. This analysis is based on all positions where cloud computing is mentioned as part of the job description, requirements or prerequisites.
- The following map shows the distribution of job counts by Metropolitan Statistical Area (MSA) and a table comparing the top 20 MSAs nationally.
- EMC (17%), Amazon.com (16%) and Salesforce.com (12%) and their partners are the leading cloud computing employers currently looking to fill positions. Software, services and system integration partners that work with these three companies will often mention them in their own job ads as well. This distribution of jobs reflects the partner network these companies have each built in addition to jobs available with each of them.
- Top ten certifications include the following:
- Top Secret Sensitive Compartmented Information (TS SCI) (863 ads);
- Certified Information Systems Security Professional (CISSP) (385 ads);
- Project Management Professional (PMP) (209 ads);
- Cisco Certified Network Associate (CCNA) (193 ads);
- Microsoft Certified Systems Engineer (MCSE) (180 ads);
- Health Insurance Portability and Accountability Act (HIPAA) expertise (156 ads);
- Business Process Management Programming Languages (BPM) expertise (137 ads);
- EMC System Administrator (EMCSyA) (130 ads);
- VMware Certified Professional (VCP) (109 ads);
- Cisco Certified Network Professional (CCNP) (108 ads).