Cloud Services Market Analysis 2013 – 2020 With Major Players : Google Inc., IBM, Microsoft and Amazon web services
Cloud computing market surged during recent economic slowdown; with the fact that over 35% of the IT cost can be saved with the adoption of the technology. Since then cloud services segment has greatly emerged as companies in cash crunch required cost-effective solutions with minimum to zero investment and reduced management of IT resources. Although, the cost and functional benefits such as scaling ability and multi-tenancy still driving much of the cloud services market growth, evolution of much value-creating productive solutions has become the current growth function of the market. The cloud, from an exploratory potential option, has now grown to become the undeniable part of organizations' overall IT portfolio. However, data security has still concerned a number of sensitive potential end users to opt for the cloud services.
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Strong growth is anticipated within the varied segments of cloud services market such as infrastructure as a service (IaaS), software as a service (SaaS), platform as a service (PaaS), business process as a service (BPaaS), cloud advertisement services, and cloud management & security services. Cloud advertising services will be the largest segment followed BPaaS with about 47% and 28% market share respectively in 2013. The cloud management & security services will be the fastest growing segment at a CAGR of 28.4% during the forecast period.
On the basis of cloud type the market is categorized as public cloud, private cloud, hybrid cloud and community cloud. Public cloud hold prominent share of the market through 2020 and is expected grow at a CAGR of 16.4% during the forecast period. The reduction of the total cost of ownership on deployment of cloud services acts as the major driver for the adoption of public clouds. The market attracts numerous new entrants due to liberal government regulations. Private cloud will have fastest growth during the analysis period whereas hybrid and community cloud services will gain gradual momentum with steady adoption within specialized end use segments.
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The most popular and observed strategy in the cloud computing services market is Merger and Acquisition. The reason behind these increased number of acquisitions are huge financial capacity of the companies. The companies in the cloud services are global market giants with high revenues and thus, maintain good liquidity. Moreover, the attractiveness of the cloud computing services market forces the companies to invest in various segments. Companies such as Google Inc., IBM, Microsoft and Amazon web services seem very active in merger and acquisition as they want to become the market leaders.
Based on end users, cloud services market can be segmented into government utilities, private organizations, healthcare, academics & education and supply chain management. Private organizations lead the end user market due to the rapidly growing IT sector, which is contributing largely to the revenue streams of the private organizations segment. The segment is expected to grow at a CAGR of 24.1% during the forecast period and it is anticipated to register revenue of$86.8 billion by 2020. Cloud services promote sector-specific services, which are customized for specific end users. One such example is the implementation of ERP in the healthcare sector.
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Varied market dynamics has been observed within the geographic market segments for cloud services.North America region being the early adopter of these services holds the highest market share throughout the analysis period. The fastest growing market is the Asia Pacific which is growing with a CAGR of 23.5% during the forecast period while representing a smaller market. Economic benefits from cloud services acts as the key driving factors in developing countries of Asia Pacific.
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