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Cloud market’s CAGR estimated to reach 26% next year

December 24, 2014  

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The cloud market is expected to grow to US$121 billion dollars in 2015, a 26% compound annual growth rate from 2010’s US$37 billion, according to research firm IDC.  Such growth is set to continue, with research showing that 81% of organizations forecast a move to the cloud for 50% of their future transactions.

With 60% of CIOs stating that their number one priority is cloud computing, a major driver has been the adoption of Software as a Service (SaaS) technology. By 2017, SaaS is set to generate almost 60% of cloud revenues, according to a study conducted by IDC on behalf of Axios Systems. The move to SaaS is primarily driven by its ability to offer greater scalability, higher efficiencies with no loss of functionality, and reduced application costs, with a move to the cloud offering annual savings of over 20%, the two say.

“We’re seeing a shift in the market, with SaaS gaining substantial traction over the past year,” said Scott Leckie, chief technology officer at Axios.

Tasos Symeonides, CEO at Axios Systems added that IT leaders are seeing the “benefits of moving to the cloud, allowing them to be more agile and responsive to business needs. Ultimately this drives greater efficiencies.”