Enterprise cloud market continues to grow

Businesses around the world now understand the potential benefits associated with adopting cloud technologies, encouraging decision-makers to incorporate the cloud into their budgets. Enterprises in particular are pleased with the way the cloud can improve operations, reduce costs and enhance the availability of mission-critical resources - a must-have capability in today's highly mobile private sector.

A recent study of 1,300 decision-makers throughout the United States, Europe and APAC regions by Technology Business Research found that 66 percent of enterprise executives purchased cloud computing solutions in 2012. This increase from 59 percent in 2010 suggests an ongoing climb toward mainstream adoption.

"The cloud professional services market continues to evolve, with clients moving from proof of concept to the purchasing of cloud services, and implementing cloud infrastructures, leveraging IT to improve revenues, profits and customer satisfaction," said Ramunas Svarcas, senior analyst at Technology Business Research. "Cloud is no longer just an IT challenge, rather a strategic investment impacting company performance in a growing global competitive environment."

However, the vast amount of services available to companies today has made the cloud market a highly diverse landscape filled with organizations implementing unique strategies in an effort to gain a competitive advantage over rival firms.

What specifically is happening in the cloud market?
As organizations continue to adopt the cloud for their own particular reasons, the overall industry expands and provides decision-makers with innovative opportunities. A report by Analysys Mason revealed that the global enterprise cloud market is forecast to generate nearly $32 billion in revenue by 2017, up from only slightly more than $18 billion in 2012.

This growth will introduce a number of changes in the industry as well. Analysys Mason noted that 66 percent of cloud revenue in 2012 was attributed to Software as a Service, while only 33 percent was derived from firms using Infrastructure as a Service. In the coming years, this differentiation will begin to narrow, as IaaS will account for roughly 43 percent of revenue in 2017.

As the cloud evolves into a more cost-effective, innovative technology available to the private sector, decision-makers will continue to migrate operations to the hosted environment. This will spur the entire cloud market to expand and encourage the business world to be more efficient, as a result.

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