Cloud services revenue expected to touch 148.8 billion by 2014
February 9th, 2011 | Related entries: Markets
The global cloud services market reaching USD 68.3 billion in 2010 may be heading towards a revenue collection of USD 148.8 billion by 2014. According to a recent report by KPMG, the cloud services revenue will be reaching USD 148.8 billion in another three years. Termed as ‘The Cloud- Changing the Business Ecosystem’, the report also provides a comprehensive coverage of the Cloud along with the impact on the industry and its role in the transformation of business ecosystems.
With a recent economic downturn, the world has been experiencing a stronger need for organizations to enhance efficiencies by means of collaborative solutions and real time information exchange. It is anticipated that the Cloud can aid in gaining prominence in the credit crisis. The efficiency of Cloud apparently depends on the flexibility, scalability and cost benefits available through the ‘as-a-service’ paradigm. In accordance to the report, there lies a strong need of a Cloud strategy for organizations to extract maximum benefit from migrating to the Cloud. The report also enlightens about the drivers and challenges for Cloud adoption.
“Technology has the ability to transform the world into the virtual space, enabling endless cycle of innovation. Advanced economies and enterprises have been able to effectively combine technology and innovation to gain a competitive edge. Emerging leaders like India and China are leveraging demographics and technology. Increased adoption of the Cloud could further strengthen their position to compete with the developed world and filling the economic and developmental void,” said Kumar Parakala, Head of IT Advisory, KPMG in India and EMA.
Amidst the various areas, industry sectors such as Government, Healthcare, and Education appear as a major focus by the Cloud. Such sectors can benefit the most as the Cloud gives them the socio-economic reach that they lacked over the past years. The Cloud is also predicted to deliver affordable, reliable, and flexible computing solutions to SMEs, further empowering them to compete more effectively with larger organizations.
“The Cloud is changing the way IT services / resources are being used and delivered. The Cloud also seeks to assure several techno-commercial benefits to enterprises and users. It’s time for businesses to redefine their business models and business leaders to revisit their IT strategy to better reflect the changing role of the technology deployment”, added Pradeep Udhas, Head of IT / ITeS Sector, KPMG in India.
The investigation by KPMG also covers the Indian context, keeping in mind the tax implications for providing and using Cloud services. All in all the IT solutions and services industry can probably witness a major change in carrying out this new service offering. Businesses too may continue opting for the Cloud, so that they can make their stand in the market.
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