Cloud computing, the recent buzz word in the internet market, in simple terms is the process of delivering hosted services through the internet. Though the concept is in its naïve stage, it is generating tremendous interest among users of all types, and has become a promising business opportunity to venture in and explore.
The cloud computing services market which is currently valued at USD 79.60 billion for the year 2011 is projected to grow steeply at a CAGR of 23.21% and reach a market size of USD 148.9 billion by year 2014. However, with rising competition and saturation and technology limitations, the market may see a drop in CAGR, but still grow at a CAGR of 8.39% and reach USD 205.48 USD by year 2018.
The cloud computing services market can be segmented broadly into three categories based on service types (*aaS). These can be:
- SaaS (Software as a Service)
- IaaS (Infrastructure as a Service)
- PaaS (Platform as a Service)
Among the three categories, SaaS is expected to grow the fastest followed by IaaS. The Saas market can be further segmented in categories such as: Cloud Security, Corporate and SMB SaaS Cloud services, and Mobile Corporate and SMB SaaS Cloud services. However, in the near future all the three segments are projected to experience healthy demand.
The cloud computing services market growth would be influenced by the global demand for technology based services, which in turn depends on the state of the global economy. Currently the growth is driven by demand in developed nations in Western markets such as North America and Europe. The developing nations are slow to adapt to the concept, and are expected to drive the growth towards the later part of the decade. The technological backwardness of emerging economies poses restrictions on cloud computing services due to lack of infrastructure availability and technical know-how.
The current cloud computing services market leaders who are defining the growth path are:
- Amazon (Amazon Web Services – AWS)
- Google (SaaS, PaaS)
- VMware (vCloud)
- Rackspace (IaaS)
- Salesforce.com (SaaS – CRM)
- Microsoft (PaaS – Azure)
- Joyent (3*aaS)
- IBM (Blue Cloud)
- Net Suite (SaaS - SuitCloud)
- 3Tera (CloudWare)
Some of the newcomers in the market are:
- Enomaly (services to cloud providers)
- GoGrid (IaaS)
This market research report analyzes important market segments, and major geographies. This report is a complete study of current trends in the market, industry growth drivers, and restraints. It provides market projections for the coming years. It includes analysis of recent developments in technology, Porter’s five force model analysis and detailed profiles of top industry players. The report also includes a review of micro and macro factors essential for the existing market players and new entrants along with detailed value chain analysis.
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Cloud computing is a technology which uses internet and one remote server to maintain data and various applications. Cloud computing provides significant cost effective IT resources as cost on demand IT based on the actual usage of the customer. Due to rapid growth, many companies are unable to handle their IT requirement even after having an in-house datacenter. Cloud services helps to improve IT capabilities without investing large amounts in new datacenters. This technology helps companies with much more efficient computing by centralizing storage, memory, processing and bandwidth.
On the basis of different offerings and benefits, cloud service is divided into three types -Infrastructure as Service (IaaS), Software as a Service (SaaS) and Platform as a Service (PaaS). On the basis of deployment model, cloud computing service is divided into private cloud, public cloud and hybrid cloud. SaaS is the largest segment of cloud computing, having market size of USD 12 billion in 2011. On the basis of geography the entire cloud service market is divided among the U.S, Europe, Asia and others.
In 2011, the cloud service market reported USD 41.2 billion globally which is estimated to grow up to USD 205 billion in 2018 with CAGR of 26% from 2011 to 2017. The mobile SaaS market in 2011 was about USD 1.2 billon which is expected to grow with CAGR 25% up to 2018. The U.S federal government market entered into double digit growth which is expected to grow with CAGR of 16.2% up to 2018. Also the U.S cloud computing market for medical imagery is expected to grow with CAGR of 26.8% up to 2018.
Some of the key market players in the cloud computing services industry are Akamai Technologies, Amazon.Com, Ca Technologies, Cisco Systems, Citrix Systems Inc., Etelos Inc., Enki Consulting, Flexiant, Gogri, Google, HP, IBM, Joyent, Microsoft, Netsuite Inc., Oracle, Salesforce.Com, Sap Ag, Taleo, Vmware, Yahoo! Inc.