Top 4 Drivers Impacting the Cloud Spending by SMBs Market until 2020, Reports Technavio

LONDON--()--Technavio analysts forecast the global cloud spending by SMBs market to grow at a CAGR of almost 21% during the forecast period, according to their latest report.

The research study covers the present scenario and growth prospects of the global cloud spending by SMBs market for 2016-2020. To calculate the market size, Technavio considers the revenue generated from the sales of cloud computing solution implemented in SMBs.

Generally, the key focus of the IT vendors is always on the global players, which is followed by the domestic enterprises, and then the small and medium-sized businesses (SMBs). At present, IT vendors have started re-focusing their efforts on the upper segment of SMBs. These SMBs have a relatively mature IT landscape and seek similar services as large enterprises. They have started upgrading their existing IT infrastructure and are also willing to invest in emerging technologies like mobility and analytics. The mid-segment of SMBs are moving from legacy applications to packaged software, while low-end SMBs have limited or no IT applications deployed. In the next 3-4 years, we expect SMBs to skip the step of establishing on-premise infrastructure and will catapult directly to cloud-based infrastructure.

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Technavio ICT analysts highlight the following four factors that are contributing to the growth of the global cloud spending by SMBs market:

  • Movement toward SOA
  • Increased use of multitenancy and cloud management platform
  • Growing volume of data
  • Public sector spending on cloud-based projects

Movement toward SOA

Service-oriented architecture (SOA) provides IT framework for enterprises to manage their IT infrastructure with greater flexibility. SOA helps organizations to implement cloud-based solutions in a simplified way and takes lesser implementation time. With the growing market and competition for innovative products and services, SMBs require IT frameworks for faster time to market in terms of products and services. SOA solutions offered by IBM help enterprises to connect with their channel partners and stakeholders on an integrated platform.

Abhay Sinha, a lead cloud computing analyst at Technavio, says, “Some of the key features of the SOA involve the provision of loosely coupled architecture and design applications, services, and reusable computer codes. Loosely coupled architecture ensures that an application running in a cloud-based environment does not intersect with other multi-applications.”

Increased use of multitenancy and cloud management platform

Cloud computing service providers are also offering multitenancy services in which more than one customers can use a single set of software applications. The multi-tenancy cloud environment helps organizations to reduce the cost of IT through sharing of IT resources. SMBs are subscribing to multi-tenancy architecture to reduce IT maintenance costs and achieve economies of scale.

Cloud management platforms have become a vital component of every business model. With evolving cloud deployments, cloud vendors are offering multiple types of cloud models. A CMP is a software with different modules and features that helps in managing cloud environments,” adds Abhay.

Growing volume of data

An enormous amount of data is being generated through numerous sources such as the Internet, mobile devices, and social media. With an increasing volume, variety, and velocity of data, organizations are facing challenges to efficiently analyze and manage large databases. The advent of big data and analytics technologies has helped organizations to transform unstructured and semi-structured information into structured and meaningful data. The key is to get the accurate data, at the right time to get correct and precise information, which can be useful in business-related decision-making processes to understand consumer behavior and market patterns.

The rapid increase in digital content worldwide has created a need to manage and operate the constantly growing data. The growth in variety and volume of unstructured data in multi-industrial enterprises has created a need for reliable, secure, and low-cost data storage infrastructure. Google Cloud Platform offers a reliable, cost-efficient, and secure data storage. It also offers transfer facilities with user-friendly access from multiple lines in an organization (or among multiple organizations). It offers a wide range of cloud storage solutions such as standard storage and durable reduced availability storage.

Public sector spending on cloud-based projects

The UK government has implemented G-cloud program to increase cloud computing procurement across the public sector organizations of the UK. Spending on cloud computing by the US government has risen because such technologies reduce the upfront cost in the public sector IT spending. The Government of India is promoting Project Baadal, a cloud computing platform for SMBs. It is pushing the IT enablement for SMBs by promoting cloud computing as a tool to improve the efficiency and competitiveness.

Top vendors:

  • AWS
  • Google
  • IBM
  • Microsoft

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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770

Release Summary

Technavio analysts forecast the global cloud spending by SMBs market to grow at a CAGR of almost 21% during the forecast period, according to their latest report.



Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770