An updated forecast has been recently released for enterprise software and cloud computing. This is due to the increasing influence of security, mobility, integration of legacy systems, and analytics which are now being taken into consideration by IT corporate heads in their buying decisions. In an article by Forbes, it says that both Gartner and Bain & Company are now considering forecasting by Software-as-a-Service (SaaS) and cloud adoption stage. According to the same article, SAP is adopting the Bain model in their market presentations. Contrary to predictions in the past, enterprise software is not yet dead. In fact, it has been rejuvenated with cloud computing and mobility acting as catalysts.
In October 2012, Gartner released a report saying that cloud business software services and Software-as-a-Service will be worth $32.2 billion by 2016, with a growth of 19.1% from $13.4 billion last year. On the other hand, the International Data Corporation reported in 2011 that server growth will be pushed by both private and public cloud computing up to 2015. It also forecasted that by 2015, over 1.8 million servers will be sold which is worth $9.4 billion. This amount is more than double the 885,000 servers worth $5.2 billion in 2011.
In IDC’s report last August 2012, the advisory, analysis and market research company also forecasted revenues from enterprise cloud application to be worth $67.3 billion in 2016, up from the 2011 $22.9 billion sales. It also predicted that some 20% of the business IT budget will be spent on cloud infrastructure and software by 2016.
Cisco, on the other hand, is predicting that about 2/3 of the whole datacenter traffic will be on worldwide cloud traffic by 2016. The Cisco Global Cloud Index says that the cloud traffic will grow up to 64% in 2016 from the 39% growth in 2011. Furthermore, its forecast is also for 60% of the total workloads will be done in the clouds by 2016. The company also says that some 11% of businesses are cloud early adopters and attained 44% adoption in 2010. By 2013, the adoption rate is expected to grow to 49%. According to Bain & Company, there’s going to be 4% reduction in reliance on on-premise applications in 2013.
Last October, Gartner released a report which is predicting the growth of Platform-as-a-Service, security and cloud management devices, and Infrastructure-as-a-Service to $35.5 billion in 2016 from $7.6 billion in 2011. The Platform-as-a-Service is expected to grow to $2.9 billion in 2016 from $900 million in 2011. On the average, the projected rate of growth for PaaS is $360 million yearly. Project and Portfolio Management; Web Conferencing, and Supply Chain Management are expected to be replaced by Digital Content Creation, Enterprise Content Management, and Customer Relationship Management.
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Creating the right cloud delivery strategy is critical to reducing your organization’s risks and building its future. Many IT organizations want to start small, to build a pilot or proof of concept for the cloud, and expand from there. They want to start understanding how a private cloud can make their organization more flexible and agile. As they expand, they can add self-service capabilities that make it simple for IT users to request new virtual environments.
