Future Forecast for Cloud Computing and Market Estimates
Louis Columbus provides an insightful overview of where global SaaS revenues are likely to reach in 2016. Estimates are around $106 billion. This constitutes a 21 percent increase over 2015 spending. That’s a huge increase by any means. Goldman Sachs published the study earlier in the year and predicted that cloud computing services and platforms would grow by 30 percent CAGR through 2018. This is six times the growth rate for overall IT platforms and infrastructure.
You can bet that major players like IBM, EMS and Cisco are gearing up to compete for big chunks of the business. We might add that tech spending will also increase dramatically in the following areas: security technologies, business analytics (big data), cloud storage and wireless mobile. Cloud computing will be huge business going forward. Currently, up to 66 percent of data may already be on the cloud. That number is expected to increase to 73 percent over the next several years.
Look for price reductions as companies compete for business. It’s likely that small companies will feel the heat from the big guns and be forced to close or reevaluate and become a cloud provider for niche audiences. You may also expect to see the cloud services expanding so large and fast that partnerships among the big corporation will be the only way that such massive data can be stored.