Cloud computing was estimated to surpass $56.3 billion in 2009 and Gartner Inc. predicts growth to $150.1 billion by 2013. Cloud-based advertising, e-commerce, human resources and payments processing make up 83% of Gartner’s revenue projections.
Software as a Service (SaaS) was projected to grow 22% to $8 billion in 2009 and have consistent growth to $16 billion by 2013.
“The adoption of SaaS continues to grow and evolve within the enterprise application markets as tighter capital budgets in the current economic environment demand leaner alternatives, popularity increases, and interest for platform as a service and cloud computing grows,” said Sharon Mertz, research director at Gartner.
“Adoption of the on-demand deployment model has grown for nearly a decade, but its popularity has increased significantly within the last five years,” Ms. Mertz said. “Initial concerns about security response time and service availability have diminished for many organizations. As SaaS business and computing models have matured, adoption has become more widespread.”
Cloud application services, evolving from software-as-a-service (SaaS) offerings, were almost twice as large as the market for systems infrastructure and will continue to show strong growth. Not all current SaaS offerings qualify as cloud services based on scaling constraints and lack of true multitenancy capability. Over the next five years an increasing array of application functionality will become available as cloud services to supplement those from current cloud application vendors.
“Cloud computing is a broad and diverse phenomenon. Much of the growth represents a transfer of traditional IT services to the new cloud model, but there is also scope for creation of substantial new businesses and revenue streams,” said Ben Pring, research vice president for Gartner. “Cloud computing enables a shift in IT provision from direct purchase and payment for services to provision of services which are free at point of use and where revenue is derived from advertising. Services supported by advertising are currently, and will remain, the largest component of the overall cloud services market through 2013.”
Sources:
Gartner Says Worldwide Cloud Services Revenue Will Grow 21.3% in 2009
Gartner Says Worldwide SaaS Revenue to Grow 22% in 2009
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