Cloud Computing Market Will Top $241 Billion In 2020

Cloud Computing Market Will Top $241 Billion In 2020

Cloud Computing Market Will Top $241 Billion In 2020

Independent research firm Forrester Research expects the global cloud computing market to reach $241 billion in 2020 compared to $40.7 in 2010, according to a new Forrester report calledSizing the Cloud”. The report aims to provide insights into the future market size of cloud computing segment while trying to predict market growth dynamics in a new IT environment driven by rapidly growing number of cloud computing services and applications.

Forrester’s report provides market forecast on 12 different market segments for the next decade, forecasting shifts in the usage patterns of cloud infrastructure, business applications for the cloud and cloud platforms that are becoming increasingly widespread.

According to Sizing the Cloud report, Software-as-a-Service (SaaS) offers more growth opportunity than any other segment in the still largely vague market for cloud computing services. SaaS will retain its position as a leading segment in cloud computing with SaaS market growing three-fold to $92.8 billion by 2016, the report said. In contrast, Infrastructure-as-a-service (IaaS) will witness a rapid growth in the next few years but Forrester expects dynamic infrastructure services to perform better than IaaS in the long term.

Cloud Computing Market

cloud computing market

Forrester applies an innovative approach toward measuring cloud computing market with company’s analysts utilizing Forrester’s sizing methodology for emerging markets to the cloud computing market for the first time, report co-author Stephen Reid wrote in a blog post. Reid admits that cloud computing definitions are still a serious challenge to researchers while “… each year, it gets harder to make clear-cut distinctions, based on technology, between what is a cloud and what is simply a virtualized data center or a traditional hosting provider. Therefore, Forrester decided to focus instead on the major disruption in the IT industry that cloud computing is bringing about — disruption based not on technology but on the business model under which IT operates.”

Reid also reveals that IaaS will shift from public clouds to virtual private clouds but the size of market is set to decrease because dynamic infrastructure services, which are the virtual private cloud counterpart of IaaS in the public cloud, tend to combine pure infrastructure with high-level services and close integration into existing on-premises landscapes. Simplified and pre-integrated platforms outline the future of Platform-as-a-service (PaaS) segment while PaaS is set to become a middleware platform alternative, Reid said.

Thus, Sizing the Cloud report supports a common view amongst analysts that cloud computing research market will witness tremendous growth in the foreseeable future. The market will grow six times within a decade, according to Forrester, which is typical only for new and relatively underdeveloped markets. However, all segments of the cloud computing market will be influenced by the overall state of the economy and global demand for IT services. Some world regions are slow to adopt cloud-based solutions while in other parts of the world managers are eager to deploy products and services utilizing the power of cloud computing.

Such a rapid market growth is a double-edged sword in terms of business opportunities and average corporate performance within the cloud computing sector. Some enterprises will benefit from the booming cloud computing market and even larger number of start-ups and established enterprises will try to set foot in the SaaS, IaaS and PaaS segments. However, a vast number of companies are expected not to make their way to the top and close doors following the appearance of too many market players in a lucrative yet limited market for cloud computing services. Only those that are able to adapt quickly to fast changing market conditions will be crowned victors and will grab the lion’s share of a $241 billion cloud computing market in 2020.

By Kiril Kirilov

Sorry, comments are closed for this post.

Comic
Fully Autonomous Cars: How’s It REALLY Going To Work?

Fully Autonomous Cars: How’s It REALLY Going To Work?

Pros and Cons and What the Experts Think Science fiction meets reality, and modern civilization is excitedly looking forward to the ubiquity of self-driving cars. However, an omnipresence of fully autonomous cars won’t happen as quickly as even some hopeful experts anticipate. While the autonomous car pros versus the cons race (See infographic discovered via…

The Lighter Side Of The Cloud – Bottlenecking

The Lighter Side Of The Cloud – Bottlenecking

By David Fletcher Please feel free to share our comics via social media networks such as Twitter, Facebook, LinkedIn, Instagram, Pinterest. Clear attribution (Twitter example: via @cloudtweaks) to our original comic sources is greatly appreciated.

Recent Articles - Posted by
Fintech Systems, Advancements and Investments

Fintech Systems, Advancements and Investments

Fintech Growth According to a recent report, global investment in fintech companies including both venture-backed and non-venture-backed businesses reached $9.4 billion in the second quarter of 2016; investment in venture capital-backed fintech startups, however, fell by 49%. Nevertheless, the Pulse of Fintech, published jointly by KPMG International and CB Insights, suggests venture capital investment in…

How Identity Governance Can Secure The Cloud Enterprise

How Identity Governance Can Secure The Cloud Enterprise

Securing The Cloud Enterprise Cloud adoption is accelerating for most enterprises, and cloud computing is becoming an integral part of enterprise IT and security infrastructure. Based on current adoption trends, it’s clear that the vast majority of new applications purchased by organizations will be SaaS applications. The allure is evident, from cost savings to speed…

The Cancer Moonshot: Collaboration Is Key

The Cancer Moonshot: Collaboration Is Key

Cancer Moonshot In his final State of the Union address in January 2016, President Obama announced a new American “moonshot” effort: finding a cure for cancer. The term “moonshot” comes from one of America’s greatest achievements, the moon landing. If the scientific community can achieve that kind of feat, then surely it can rally around…

Adopting A Cohesive GRC Mindset For Cloud Security

Adopting A Cohesive GRC Mindset For Cloud Security

Cloud Security Mindset Businesses are becoming wise to the compelling benefits of cloud computing. When adopting cloud, they need a high level of confidence in how it will be risk-managed and controlled, to preserve the security of their information and integrity of their operations. Cloud implementation is sometimes built up over time in a business,…

Don’t Be Intimidated By Data Governance

Don’t Be Intimidated By Data Governance

Data Governance Data governance, the understanding of the raw data of an organization is an area IT departments have historically viewed as a lose-lose proposition. Not doing anything means organizations run the risk of data loss, data breaches and data anarchy – no control, no oversight – the Wild West with IT is just hoping…

Cloud Services Providers – Learning To Keep The Lights On

The True Meaning of Availability What is real availability? In our line of work, cloud service providers approach availability from the inside out. And in many cases, some never make it past their own front door given how challenging it is to keep the lights on at home let alone factors that are out of…

Multi-Cloud Integration Has Arrived

Multi-Cloud Integration Has Arrived

Multi-Cloud Integration Speed, flexibility, and innovation require multiple cloud services As businesses seek new paths to innovation, racing to market with new features and products, cloud services continue to grow in popularity. According to Gartner, 88% of total compute will be cloud-based by 2020, leaving just 12% on premise. Flexibility remains a key consideration, and…

6 Tech Predictions To Have A Major Impact In 2016

6 Tech Predictions To Have A Major Impact In 2016

6 Tech Predictions To Have A Major Impact The technology industry moves at a relentless pace, making it both exhilarating and unforgiving. For those at the forefront of innovation it is an incredibly exciting place to be, but what trends are we likely to see coming to the fore in 2016? Below are six predictions…

New Report Finds 1 Out Of 3 Sites Are Vulnerable To Malware

New Report Finds 1 Out Of 3 Sites Are Vulnerable To Malware

1 Out Of 3 Sites Are Vulnerable To Malware A new report published this morning by Menlo Security has alarmingly suggested that at least a third of the top 1,000,000 websites in the world are at risk of being infected by malware. While it’s worth prefacing the findings with the fact Menlo used Alexa to…

The Big Data Movement Gets Bigger

The Big Data Movement Gets Bigger

The Big Data Movement In recent years, Big Data and Cloud relations have been growing steadily. And while there have been many questions raised around how best to use the information being gathered, there is no question that there is a real future between the two. The growing importance of Big Data Scientists and the…

4 Different Types of Attacks – Understanding the “Insider Threat”

4 Different Types of Attacks – Understanding the “Insider Threat”

Understanding the “Insider Threat”  The revelations that last month’s Sony hack was likely caused by a disgruntled former employee have put a renewed spotlight on the insider threat. The insider threat first received attention after Edward Snowden began to release all sorts of confidential information regarding national security. While many called him a hero, what…

Cloud Computing Services Perfect For Your Startup

Cloud Computing Services Perfect For Your Startup

Cloud Computing Services Chances are if you’re working for a startup or smaller company, you don’t have a robust IT department. You’d be lucky to even have a couple IT specialists. It’s not that smaller companies are ignoring the value and importance of IT, but with limited resources, they can’t afford to focus on anything…

The Monstrous IoT Connected Cloud Market

The Monstrous IoT Connected Cloud Market

What’s Missing in the IoT? While the Internet of Things has become a popular concept among tech crowds, the consumer IoT remains fragmented. Top companies continue to battle to decide who will be the epicenter of the smart home of the future, creating separate ecosystems (like the iOS and Android smartphone market) in their wake.…