Global Cloud Computing Service Market 2014

By TechSci Research

8/2/2010

Report Overview
Cloud computing has emerged as the latest buzzword for the IT industry. Not only is it revolutionizing the IT industry, but it is also giving a new dimension to IT services being offered by vendors. Cloud computing services can be considered as combination of grid computing, utility computing, virtualization, clustering services. The cloud service environment has forced both service providers and users to realign their operational and business strategies with respect to IT decision making. As per our findings, the cloud computing service market will witness phenomenal growth in the near future, driven by scalability of IT resources, cost reduction, improved computation capacity and other factors identified. The market is anticipated to more than double by 2014 as compared to 2009 levels and is likely to be dominated by companies from the U.S and European regions. Global Cloud Computing Service Market Outlook 2014 discuss following issues: Global Cloud Computing Service Market Opportunity (US$ Billion) Global Cloud Computing Market Segmentation by Services Market opportunity by Region Mobile Cloud Computing Market Opportunity (US$ Billion) Mobile Cloud Computing Market Segmentation by Enterprise & User Segment Mobile Cloud Computing Subscriber Base (Million)

Global Cloud Computing Service Market Outlook 2014 has evaluated business and nonbusiness issues related to the worldwide cloud computing service market worldwide. This study gives unprejudiced view on the various aspects of cloud computing service market and helps reader to get complete overview on latest trends, market potential, infrastructure and delivery model related to industry. This study by TechSci Research will definitely help consultants, cloud computing service providers, IT infrastructure vendors, business managers to identify the market opportunities and will help them in market centric decision making process.

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Table of Contents 1. 2. 3. 3.1 3.2 3.3 4. 4.1 4.2 4.3 5. 6. 6.1 6.2 6.3 7. 8. 8.1 8.2 8.3 9. 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 Analyst Briefing What is Cloud Computing? Delivery Model Software-as-a-Service Platform-as-a-Service Infrastructure-as-a-Service Infrastructure/Deployment Model Private Clouds Public Clouds Hybrid Clouds Why Cloud Computing Services? Cloud Computing Market: Scenario 2014 Market Potential By Region By Product/Services Mobile Cloud Computing: Scenario 2014 Barriers to Cloud Computing Market Reliability Security Regulations Restrictions Competitive Landscape Amazon Salesforce.com VMware, Inc. Savvis Rackspace Hosting IBM Dell Cisco EMC Oracle NetSuite Microsoft

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List of Figures Figure 5 1: Growth Driver for Cloud Computing Service Market Figure 6 1: Cloud Computing Service Market (US$ Billion), 2009-2014 Figure 6 2: Cloud Computing Service Market Opportunity by Region (%) Figure 6 3: Share of Cloud Computing Market by Service, 2014 Figure 7 1: Mobile Cloud Computing Applications Market (US$ Billion), 2010 & 2014 Figure 7 2: Mobile Cloud Computing Applications Market Revenue by Enterprise & Consumer Segment (%), 2014 Figure 7 3: Mobile Cloud Computing Subscribers (Million), 2014 Figure 8 1: Growth Inhibitors to Cloud Computing Service Market

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6. Cloud Computing Market: Scenario 2014

6.1 Market Potential
The cloud computing market is expected to generate revenue of US$ 50 Billion by 2014 as compare to US$ 20 Billion in 2009. Our findings have revealed that the ease of information access through cloud along with availability of multiple applications will drive the cloud computing service market in near future. The huge cost savings and focus on core business activities will shift the consumer preference towards cloud computing service model as compared to in-house data center or traditional way of using web hosting services. In our opinion cloud service model has potential to overtake the traditional way of offering services and applications in near future. The concept of virtual datacenters to access and store information along with availability of multiple applications on a single platform will attract organizations towards cloud computing service framework. The potential of cloud computing lies in its basic model of offering ready to use services, latest and extended business capabilities, reduced investment on IT infrastructure and high level of flexibility in accessing the on demand services.

Figure 6-1: Cloud Computing Service Market (US$ Billion), 2009-2014

2009 Source: TechSci Research

2010

2011

2012

2013

2014

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6.2 By Region
The cloud computing service market revenue will be dominated by European and North America in coming years. Both of these regions are expected to account for 75% of the global cloud computing service market revenue followed by Asia at 15%. Middle East and Africa region along with Australia and New Zealand accounts for remaining 10% market opportunity for cloud computing services. As per our findings cost reduction, extension in computing capacity coupled with scalability of resources will be the key parameters driving the demand of cloud computing services in these regions. Further, it is estimated that companies using cloud computing services will be able to reduce their IT budgets by average 30% to 40% with the help of cloud computing services in near future. The dominance of North America in global cloud computing service market will be backed by the government commitments and spending by U.S Federal on cloud computing which is expected to grow by more than 40% in coming years. Besides government backing, rising investments in cloud computing infrastructure will also give the required thrust to North America cloud computing service market. The only problem with cloud computing service provider will be the strict guidelines in some of the European countries where government norms will not allow customer's personal information and other sensitive information to be physically located outside the state or country. Figure6-2: Cloud Computing Service Market Opportunity by Region (%)

Europe Source: TechSci Research

North America

Asia

Others

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6.3 By Product/Services
The application segment will continue to lead the overall cloud computing market by 2014 with total spending of US$ 20 Billion as compare to US$ 9.8 Billion in 2009. As per our findings large number of small and medium enterprises will emerge as more predominant user of cloud computing services for application services due to cost advantage. These small firms will opt for pay per use model in comparison to completely buying the application package. Figure 6-3: Share of Cloud Computing Market by Service, 2014

Application Infrastructure Software Servers

App Development/Deploy Storage

Source: TechSci Research

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7. Mobile Cloud Computing: Scenario 2014

The market for cloud based mobile applications is expected to reach US$ 8 Billion by 2014 as compared to estimated US$ 0.5 Billion during 2010. The market will be driven by adoption and development of new web based standards, rising mobile based internet access, increasing penetration of smart and web enabled phones. At technological front, scalability will be the most important factor which will result in shift in user preference towards cloud based applications as compared to traditional mode of accessing applications. The cloud based computing will also enable non smart phone users to access the same applications similar to that of smart phone users on same platform. The mobile computing service architecture will remove the issue of accessing only those applications that are tied with service provider. At present the iPhone or we can say the Blackberry applications are only accessible to user whose service provider has relationship with these two companies. But through mobile based cloud services architecture any user can access to any mobile applications if they have access to web.

Figure 7-1: Mobile Cloud Computing Applications Market (US$ Billion), 2010 & 2014

2010 Source: TechSci Research

2014

The mobile cloud service market will be dominated by enterprise segment as these users will be able to access and share their data, work on projects from remote locations, presentation to end clients and much more. In our opinion cloud computing will definitely revolutionize the way in which applications are processed and accessed on mobile. The cloud based applications will result in extended capabilities and features of smart as well as non smart phones.

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Figure 1: Mobile Cloud Computing Applications Market Revenue by Enterprise & Consumer Segment (%), 2014

Enterprise Source: TechSci Research

Consumer

According to our findings there will be 250 Million subscribers for mobile based cloud computing services by 2014. The enterprise subscribers will account for 80% of the total mobile cloud computing subscriber base due to dominance of business based applications. The mobile based cloud computing services will allow enterprise subscriber to share, download and process the information simultaneously even from remote locations. expect that by 2014 We mobile cloud computing will be the prominent application

development methodology as compared to present methodology of downloading applications. This shift in application accessibility mode will drive the number of mobile cloud subscribers in coming years and will give them more computation and accessibility power as compared to traditional systems. Figure 7-3: Mobile Cloud Computing Subscribers (Million), 2014

Total Subscribers

Enterprise Subscribers

Others

Source: TechSci Research

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