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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 towards service-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.
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 -
The other prominent vendors in the market are AT&T, Birst, CA Technologies, Canto, HPE, RackSpace, Salesforce, SAP, ServiceNow, and VMware.
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.
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 computing solutions in the public sector by the US to reduce government expenditure in IT solutions will also fuel the prospects for growth in this market.
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PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Market landscape
PART 06: Market segmentation by services
PART 07: Geographical segmentation
PART 08: Market drivers
PART 09: Impact of drivers
PART 10: Market challenges
PART 11: Impact of drivers and challenges
PART 12: Market trends
PART 13: Vendor landscape
PART 14: Key vendor analysis
PART 15: Appendix
PART 16: Explore Technavio
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