2012 Updates of Cloud and Enterprise Software

Recent reports on Cloud computing and enterprise software predict the influence of analytics, mobility, legacy systems integration and security on the minds of the IT buyer. Moving beyond the aggregate forecasts the organizations Bain & Company and Gartner are now beginning to predict about the adoption of Cloud and SaaS. SAP is utilizing the Bain adoption model for their predictions on the vertical markets. There is an ongoing talk about the demise of enterprise software and mobility and Cloud remain the catalysts for enterprise application adoption. The following are some of the key take-away of the Cloud and enterprise software forecasts:

  • Gartner estimated that both Software-as-a-Service and Cloud-based applications is expected to grow from $13.4 billion in 2011 to $32.2 billion in 2016.
  • The main catalysts for server growth through 2015 will be both the public and private Cloud computing. A report by IDC forecasted a $9.4B global market in 2015, which will result in 1.8 million sold servers. The report from 2011 to 2015 presented forth IDC’s enterprise server Cloud computing based on terms of customer revenue, CPU type, form factor, workload and shipments. The senior research analyst of IDC’s Enterprise Servers and Datacenter Trends, Katherine Broderick said that both the public and private Cloud would grow in the server market through 2015. The Cloud itself will grow from $2.5 billion opportunities in 2011 to $9.4 billion in market in 2015 with 1.8 million units.
  • Another report by IDC stated that the Cloud application revenues would reach $67.3 billion by 2016 from the $22.9 billion in 2011. The report put forth the IDC’s viewpoint on the worldwide Cloud and SaaS performance. The growth through 2016 will outpace the traditional software product delivery and become one of the key drivers to all existing functional software markets. The report stated that of $1 of every $5 would be spent on the software. Robert P. Mahowald, research Vice President of IDC’s SaaS and Cloud, commented that, “Figuring out how to find and capitalize on the enormous cloud services transformation is the number 1 strategic goal of all major IT product vendors. SaaS and broader public cloud opportunities, represents both a tremendous challenge to meet change head-on and a huge opportunity to realign with partners, create new capabilities, move into new markets, and define new leaders.”
  • Another report by the Cisco Global Cloud Index, the global Cloud traffic will be accountable for two-thirds of total data center traffic in 2016. The company also forecasted Cloud traffic would increase from 39% in 2011 to 64% in 2016.
  • According to the Bain & Company’s Cloud computing survey, 11% of the companies are in transference attaining 49% adoption in 2013. This segment will also reduce its dependency on traditional and on-premise software from 34% to 30%.
  • The Infrastructure as a Service, Platform as a Service, Cloud management and security devices are growing from $7.6 billion in 2011 to 35.5 billion in 2016 according to Gartner.
  • The Platform as a Service is expected to grow from $900 million in 2011 to $2.9 billion in 2016. The report by Gartner predicts that PaaS will generate $360 million a year in revenue from 2011 to 2016.

PaaS-Market-Forecast

  • The three most popular SaaS solutions deployed are CRM (49%), Digital Content Creation (35%) and Enterprise Content Management (ECM) (37%) which has replaced Supply Chain Management, teaming platforms, social software suites, web conferencing and Project and Portfolio management.
  • In 2011 alone, the enterprise application software market had generated $115. 1 billion and has been projected to grow about $157.6 billion in 2016. This revenue is mostly from maintenance and technical support (38%), 17% from subscription payments, and 56% from new purchases.
  • Gartner also forecasted that transportation, securities, insurance, banking, media and manufacturing are going to provide the greatest opportunities through 2016.

 

SMB Versus Enterprise Software Budget Allocation to Annual Subscriptions 2011

SMB-Verus-Enterprise-Software-Budget-Allocation-to-Annual-Subscriptions-2011

Image courtesy: Google

  • A forecast by Forrester said that the global market of Cloud would grow from the present $40.7 billion to $241 billion in 2020.

Reference Credit: http://www.forbes.com/sites/louiscolumbus/2012/11/08/cloud-computing-and-enterprise-software-forecast-update-2012/


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