In a relatively short span of years, the concept of cloud computing services received high attention as an integral part of an enterprise’s IT strategy. The global cloud computing services market
was once valued at US$79.60 billion in 2011 and was further projected to grow at a CAGR of 23.21% to reach a market value of US$148.9 billion by 2014.
These services have revolutionized and introduced new ways of how IT delivers services and how the customers access applications, information, and business services. A cloud computing service is the most popular buzz in the internet market today. Known to deliver hosted services through internet, the concept is still considered as naïve – but is so far generating tremendous interest and growing business among several users in the world.
Cloud Computing Services Market Gaining Grounds in Mainstream IT
Cloud computing services market is the hottest IT enterprise topic of recent times. It is rapidly gaining attention as the market aims to share resources among different cloud service consumers, cloud vendors, and cloud partners operating in this space. Cloud computing services do not only reduce business costs, but also ease the use and access to applications from any remote location. These services promptly react to rapid changes and up-gradations in business needs. The market for cloud computing provides vital cost-effective IT resources and helps to improve IT capabilities without any major investments in new datacenters.
However, due to rapid growth, several IT companies are unable to wield their IT requirements in spite of having an in-house datacenter. This factor has limited the technology offerings which are also coupled with rising competition and saturation. Due to this, the market may witness a decline in CAGR in the next few years. The market will grow at 8.39% CAGR and reach US$205.48 by the end of 2018.
Different Types of Cloud Service Models
Based on the service types, the overall cloud computing services market is segmented as follows:
- SaaS (Software as a Service)
- IaaS (Infrastructure as a Service)
- PaaS (Platform as a Service)
All the three segments have effectively made an impact on the retail and IT industry with their major shares. These segments are expected to continue to rise until 2018.
SaaS Leads as the Largest Cloud Market Segment
The SaaS is predicted to grow as the fastest growing product segment in the cloud computing services market. With a market size of US$12 billion in 2011, SaaS has held the overall market significantly as compared to the other two segments, which are struggling to gain importance and business within enterprises. Moreover, during the same year, the mobile SaaS market was pegged at US$1.2 billion and is expected to grow at a CAGR of 25% until 2018. The growth in the cloud computing services market is likely to be influenced by the global demand for technology based services as well as state of the global economy. The major growth in this market is mainly driven by demand from western markets, mostly Europe and North America. While, the eastern countries are likely to adapt slow growth due to the technological backwardness and lack of infrastructure on cloud computing services and its know-how.
The future of cloud computing services market is anticipated to see promising growth with major IT players such as Google (SaaS, PaaS), Microsoft (PaaS – Azure), 3Tera (CloudWare), IBM (Blue Cloud), Amazon (Amazon Web Services – AWS), VMware (vCloud), Joyent (3*aaS), Salesforce.com (SaaS – CRM), Rackspace (IaaS), and Net Suite (SaaS - SuitCloud).
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