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Market Study
Published: September 2016
Pages: 60
Research from: TechNavio
Sector: Information & Communications Technology

From: GBP 2525.00
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This industry research report identifies AWS, Google, IBM, Microsoft, and Oracle as the key vendors in the global cloud spending by SMBs market. This report also presents a competitive analysis of the market by services (SaaS spending, IaaS spending, and PaaS spending) and by geography (the Americas, APAC, and EMEA).


Overview of the global cloud spending by SMBs market

Market research analysts at Technavio have predicted that the global cloud spending by SMBs (small and medium-sized business) market will grow steadily during the forecast period and post an impressive CAGR of more than 20% by 2020. This market research analysis identifies the shift towardsservice-oriented architecture (SOA) as one of the primary factors impacting the growth of this market. SOA provides enterprises with IT frameworks to manage their IT infrastructure with greater flexibility and also to implement cloud computing solutions in a much simpler way and lesser time. The increasing demand for innovative products and services will induce SMBs to prefer IT frameworks that enhance their marketing features. Also, with the provision of loosely coupled architecture and design applications and reusable computer codes, SOA models ensure that an application running in a cloud-based environment does not intersect with other multi-applications, which will lead to a rise in their adoption.

The adoption of OpenStack is one of the major trends that will gain traction in this market during the next four years. Online retailers such as e-bay and Walmart have already implemented OpenStack solutions to manage their online shopping platforms efficiently. The growing need to sustain market competition, reduce operational costs, and reduce complexities in the IT infrastructure will result in the increased adoption of OpenStack during the estimated period.

Competitive landscape and key vendors

The market is characterized by the presence of several cloud computing companies providing cloud computing solutions for SMBs and as a result, the competitive environment in the market is quite fierce. Vendors usually compete on the basis of product features and competitive pricing. To cater the specific needs of the customers, vendors have started investing in developing customized cloud-based solutions. The market’s growth potential will attract several new start-ups and mid-sized cloud computing vendors to enter the industry, which will also intensify the level of competition among the vendors. To sustain their market position, cloud service providers have started offering innovative products and build capabilities in response to low service differentiation.

The key vendors in the market are -

·                            AWS

·                            Google

·                            IBM

·                            Microsoft

·                            Oracle

The other prominent vendors in the market are AT&T, Birst, CA Technologies, Canto, HPE, RackSpace, Salesforce, SAP, ServiceNow, and VMware.

Segmentation by services and analysis of the cloud spending by SMBs market

·                            SaaS (software as a service) spending

·                            IaaS (infrastructure as a service) spending

·                            PaaS (platform as a service) spending

During 2015, the SaaS spending segment accounted for a dominant share of the market’s revenue shares and posted a revenue of more than USD 39 billion. Focusing on reducing the high upfront cost of software licensing, SMBs have started implementing SaaS solutions over on-premise infrastructure. Also, SaaS-based software solutions can be implemented much faster than on-premise solutions, which will induce more SMBs to adopt SaaS-based solutions for several applications including CRM, accounting, payroll, and supply chain management.

Geographical segmentation and analysis of the cloud spending by SMBs market

·                            Americas

·                            APAC

·                            EMEA

This market study predicts that in terms of geographical regions, the Americas will be the major revenue contributor to the cloud computing services market during the next four year. During 2015, it was observed that this region accounted for more than 48% of the total market shares. The need to reduce operational costs is a major factor resulting in the high adoption of cloud computing services by SMBs in this region.  The BFSI, e-commerce, and telecom industries will be the primary adopters of cloud technology. Moreover, recent regulations demanding the implementation of cloud computingsolutions in the public sector by the US to reduce government expenditure in IT solutions will also fuel the prospects for growth in this market.

Key questions answered in the report include

·                            What will the market size and the growth rate be in 2020?

·                            What are the key factors driving the global cloud spending by SMBs market?

·                            What are the key market trends impacting the growth of the global cloud spending by SMBs market?

·                            What are the challenges to market growth?

·                            Who are the key vendors in the global cloud spending by SMBs market?

·                            What are the market opportunities and threats faced by the vendors in the global cloud spending by SMBs market?

·                            Trending factors influencing the market shares of the Americas, APAC, and EMEA.

·                            What are the key outcomes of the five forces analysis of the global cloud spending by SMBs market?


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