Sizing the Cloud details how SaaS will reach saturation point
The cloud computing market will be worth $241 billion in 2020, with Software-as-a-Service accounting for the bulk of the spending as other platforms fall away
SaaS ‘will hit saturation point’ as cloud computing market grows
Wednesday, April 27 2011 by Catherine Ferguson
Businesses will find Software-as-a-Service (SaaS) is the driving force behind an explosion in cloud computing spending over the next nine years. A new report from internet consultants Forrester Research reveals the global cloud computing market will expand from $40.7 billion (£24.6 billion) in 2011 to $241 billion (£145.5 billion) by 2020.
The report, entitled Sizing the Cloud, reveals SaaS will be the main form of cloud technology taken up by companies. Worth $21.2 billion (£12.8 billion) this year, the market will hit $92.8 billion (£56 billion) by 2016, at which point it is expected to reach “saturation” levels.
On the other hand, the Infrastructure-as-a-Service market will hit a high of $5.9 billion (£3.6 billion) in 2014, by which time commoditisation, price pressure and falling margins will see its uptake fall away. The early gains of Amazon Web Services and Rackspace will not be sustainable, the report indicates. Both Business Process-as-a-Service and Virtualisation will recede as SaaS dominates the cloud market.
“SaaS applications tend to be bought by business people who are less concerned about the issue of privacy than IT staff and developers, who tend to buy the IaaS applications,” Forrester analyst Stefan Ried told Computer Weekly. “IT staff are used to privacy challenges from their efforts spent installing on-premise technology and security.”
Microsoft’s recent SMB Cloud Adoption Study 2011, which looked at how cloud computing will impact small and midsize businesses (SMBs) in the next three years, also revealed a growing desire for SaaS platforms
The research found that 39 per cent of SMBs expect to be paying for one or more cloud service within three years, up from the current 29 per cent. It also noted that the number of cloud services SMBs pay for will nearly double in most countries over the same period.
Marco Limena from Microsoft said: “As cloud computing becomes more ubiquitous and SMBs’ existing IT becomes outdated, adoption will grow rapidly.”
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