Global Cloud Spending by SMBs Market 2016-2020
About Cloud Computing Solutions
Cloud computing solutions are IT solutions that are deployed in the ICT systems and eliminate the need to install in-house hardware and software. The cost of in-house IT solutions is relatively low compared to cloud-based solutions among most of the IT deployment models. Cloud computing solutions have been implemented in a majority of organizations, irrespective of the size of the business. Firms that have high IT budgets and are willing to spend more on flexible IT solutions have majorly invested in cloud computing solutions. However, some of the firms are still using on-premise solutions due to cloud security concerns and also due to resistance from in-house IT departments.
Technavio’s analysts forecast the global cloud spending by SMBs market to grow at a CAGR of 20.52% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global cloud spending by SMBs market for 2016-2020. To calculate the market size, the report considers the revenue generated from the sales of cloud computing solution implemented in SMBs.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Cloud Spending by SMBs Market 2016-2020
Technavio recognizes the following companies as the key players in the global cloud spending by SMBs market: AWS, Google, IBM, Microsoft, AT&T, Birst, CA Technologies, Canto, HPE, RackSpace, Salesforce, SAP, ServiceNow, and VMware.
Commenting on the report, an analyst from Technavio’s team said: “Increased adoption of cloud analytics will be a key trend for market growth. Cloud analytic services among SMBs have gained significant recognition in recent years. The adoption of cloud analytics services has increased among SMBs to get meaningful insights from structured data. Big data and analytics services are playing an important role in the business development of SMBs. The earlier majority of the SMBs were using on-premise cloud analytics solutions, but now approximately 52% of the SMBs are using cloud-based analytics solutions.”
According to the report, one of the key drivers for market growth will be 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. The Ministry of Micro, Small, And Medium Enterprises (MSMEs) of the Government of India conducted a survey. The findings from this survey will help cloud service providers to fine-tune their offerings, reduce costs, and give them a competitive edge.
Further, the report states that vendors need to market their cloud computing services in the SMB market that is highly fragmented in nature. The small-scale industry often hesitates to implement IT solutions and usually relies on manual processes to manage their operational and business processes. This challenge is aggravated by the geographical spread of SMBs, which makes it difficult to do their profiling, identifying sub-segments and finding opportunities. This adds a lot of cost burden onto the sales process, leading to a longer sales cycle and making it difficult to communicate the business offering to designated customers.
AWS, Google, IBM, Microsoft, AT&T, Birst, CA Technologies, Canto, HPE, RackSpace, Salesforce, SAP, ServiceNow, and VMware.