Global Cloud Computing Services Market to Reach US$127 Billion by 2017, According to New Report by Global Industry Analysts

GIA announces the release of a comprehensive global report on Cloud Computing Services markets. Global Cloud Computing Services market is projected to reach about US$127 billion by the year 2017, primarily driven by factors just as growing prominence of enterprise mobility, need for business continuity, and increasing adoption of cloud strategy among small and medium enterprises.San Jose, California November 21, 2011

The Internet being a foundation for cloud computing

With the Internet being a foundation for cloud computing, the term “cloud” is used as a metaphor for the Internet. Thanks to new and improved networks, the Internet is fast emerging into vehicle for delivering computational requirements. The ubiquity of the Internet and the widespread availability of high-speed broadband access are the primary factors driving the movement towards the cloud. Even though still a small percentage of the total IT spends, cloud services are strong drivers of incremental growth.

The recent economic recession saw hordes of companies take to cloud computing as a cost saving strategy. Cloud computing came as a boon for companies while tough economic and financial climate, given that the innovation can potentially slash IT costs by over 35%. The bad economy fed the global cloud computing services market as cash, and revenue starved companies prowled for IT solutions that are cost-effective, require minimum to zero investments, and low management of computing resources. Technically, the feature of multi-tenancy, or the ability to scale up or scale down services on demand, makes fiscal sense in tough economic climate. And with cloud computing fitting the bill from every point of view, the business case for the research stands exemplified. Taking everything into account, recession became the push factor, which tripped the market into the mass adoption stage.

The world economy navigates its way through recession

As the world economy navigates its way through recession and towards recovery, organizations will in spite of everything retain their appetite for cost effective solutions, however will for all that demand more value-creating productivity. Against this backdrop, cloud computing stands poised for post recession boom. Shifting priorities among limited budgetary constraints will make it critical for market participants to closely follow spending patterns to understand areas where companies will be spending their precious funds. Given the fact that cloud computing services help companies scale up or scale down their computing requirements and resources through public, private and hybrid clouds, the value proposition offered is overwhelming. Companies that will consume the most cloud services are expected to be those operating in a commoditized business environment where constant product differentiation is a perennial need.

Growing recognition of economic and operational benefits and the efficiency of cloud-computing model promise strong future growth. As companies ease out by degree from the economic uncertainties and financial shackles, widespread adoption of cloud services is in prospect. The pragmatic and successful adoption of this research concept by early adopters will pave the way for mass enterprise adoption of cloud services in the upcoming years. The transition of enterprises from virtual machines to the cloud will additionally extend the impetus required for strong growth. Poised to score the maximum gains will be end-to end cloud-computing solutions that offer complete functionalities ranging from integration of internal and external clouds, automation of business critical tasks, and streamlining of business processes and workflow, among others.

The market will be primarily driven

Future growth in the market will be primarily driven by growing adoption of enterprise mobility as a key IT strategy among new age companies. With most of the modern business houses exploring opportunities globally, business operations in recent years are moving beyond corporate boundary walls. Global mobile worker population is as well expected grow at a considerable pace in the coming years. Given the need for mobile workforce to constantly remain in touch with corporate headquarters and access business information even when away, the demand for productivity solutions just as collaboration and communications suites, IM, document sharing e-mail, and Web conferencing, which are hosted on the cloud however are accessible to a mobile workforce via browser on mobile devices, is growing at a robust pace.

Growth in the market will as well be driven by the need for companies to ensure business continuity. With most businesses perceiving traditional in-house data backup infrastructure as insufficient in safeguarding critical corporate data from system failures, theft, vandalism, floods and fire, offsite backup infrastructure are magnetizing enormous interest and investments. Against this backdrop, cloud computing and web hosted storage plus backup options are increasing in popularity as companies’ race to online vaulting service providers to hedge the risks associated with the unknown future. Cloud computing, as a low cost alternative to traditional data backup storage options, is emerging into a viable option for business continuity and disaster data recovery management for both small-medium and large-sized businesses. Growth in the cloud computing market will as well be driven by growing adoption of innovation among small and medium enterprises. Charmed by the prospect of gaining access to such high-end technologies, whose adoption until recently were largely limited to huge multinationals with strong financial muscle, SMEs have been increasing their investments on cloud computing.

As stated by the new market technology report on Cloud Computing Services, the United States remains the largest regional market worldwide. Asia-Pacific is one of the fastest growing regional markets for cloud computing services, with earnings from the region waxing at a CAGR of about 35% over the analysis period. Growth in the Asia-Pacific market will be especially driven by the accelerated pace of developments in the enterprise sector, especially in emerging markets just as China and India, and the need for efficient solutions to deliver IT services. Infrastructure as a Service represents the fastest growing market segment by service type.

The innovation report titled “Cloud Computing Services: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a review of noteworthy market trends, growth drivers and challenges. The report just in case also enumerates recent acquisitions, and other strategic industry activities. The report offers demand estimates and projections for world Cloud Computing Services market by service verticals, Software as a Service; Platform as a Service; and Infrastructure as a Service. Key geographic markets analyzed in the report include the US, Canada, Japan, Europe, Asia-Pacific, Latin America, and Rest of World.

Global Industry Analysts, Inc., is a leading publisher of off-the-shelf market technology. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale innovation reports and analyzes 40,000+ market and innovation trends during monitoring more than 126,000 Companies worldwide. Serving over 9500 customers in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.