Service providers must embrace cloud services and bundle them into their enterprise solutions, says Analysys Mason
Date: Mon, 07/26/2010 - 16:18 Source: Analysys Mason Press Department
Service providers must embrace cloud services and bundle them into their solutions for small or medium-sized enterprises (SMEs) as well as large enterprises, according to the latest report from Analysys Mason
The report, entitled Enterprise cloud services: worldwide forecast 2010–2015, states that the global market for enterprise cloud-based services will grow from USD12.1 billion (EUR9.4 billion) in 2010 to USD35.6 billion (EUR27.5 billion) in 2015.
“The business model behind cloud services is similar to that behind established communications network services. A service provider amortises its upfront data-centre-related capital investment over a period of months, coinciding with the monthly fees charged to end-user enterprises for the use of the infrastructure,” states Steve Hilton, report author and Principal Analyst at Analysys Mason.
“For a service provider, this model should be very comfortable,” he adds.
“Less comfortable is the unregulated nature of the business – there is no guaranteed return on investment – and the non-telecoms-centric services they will be required to market and sell.”
According to the report, the year-on-year growth rate will be 43% in 2011, but will decrease to 13% over the next five years. Software-as-a-service (SaaS) will account for 70% of revenue in 2010, while the share taken by infrastructure-as-a-service (IaaS) will increase from 30% to 40% over the next five years.
By 2015, registered IT and application partners – such as agents, systems integrators, dealers and direct market resellers – will account for 39% of this revenue. IT and application vendors will take 36%, while telecoms and cable TV operators will secure a 23% share.
Key findings from the report include:
• Operators should bundle cloud-based application and infrastructure solutions with core connectivity.
• Operators should focus on the SME segment, rather than large businesses.
• Traditional IT and application partners must embrace cloud solutions to avoid missing out on more than USD14 billion in revenue by 2015.
• IT and application vendors should seek out the particularly high revenue opportunities in the developed markets in the Asia–Pacific region, North America and Western Europe.