Cloud Computing Market Overview
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1 Cloud Computing Market Overview This is the latest overview report in the Market Monitor: Cloud Computing service. Here we examine the revenue generated by cloud service providers and technology vendors via cloud platforms IaaS and PaaS as well as IT management as a service (ITMaaS), online backup/recovery and cloud archiving. This report provides updated estimates and a fiveyear growth forecast for the cloud computing market, and includes vendor statistics and a breakdown of revenue by geographic region and vertical market. Our analysis is based on results from a bottom-up market-sizing analysis that incorporates revenue estimates and forecasts for 344 competing cloud vendors. ANALYSTS: Yulitza Peraza Gregory Zwakman Analyst, Quantitative Services Research Director, Quantitative Services
2 Table of Contents Methodology Market Monitor s Bottom-Up Approach Cloud Computing Vendor Distribution Market Monitor Data Sources Vendor Funding Breakdown Market Monitor s Cloud Coverage Cloud Computing Sector 2013 Revenue Breakdown Overview: Cloud Computing & Cloud-Enabling Technologies Cloud As a Service : Geographic Revenue (344 Vendors) CET VS. Cloud Computing Cloud Computing As a Service : Vertical Revenue CET vs. Cloud Computing Relative Revenue Cloud Computing: New Market Entrants CET vs. Cloud Computing ($M) Cloud Computing As a Service : M&A Activity Cloud Computing As a Service Market Taxonomy Market Drivers(+)/Challenges(-) Cloud-Enabling Technologies Market Taxonomy IaaS: Infrastructure as a Service Cloud Computing Overview IaaS Definition Cloud Computing As a Service Market Highlights IaaS Market Highlights ($BN) Cloud As a Service Phase Adoption ($BN) IaaS Coverage: Vendors (4 slides) Cloud As a Service Sector Highlights IaaS: Vendor by 2013E Revenue Range Cloud Computing Vendor Distribution (Public/Private Vendors) Cloud Computing & Sector Vendor Distribution IaaS Vendor Distribution (Public/Private Vendors) IaaS Vendor Distribution (Revenue)
3 Table of Contents PaaS: Platform as a Service Infrastructure Software as a Service PaaS Definition Infrastructure SaaS Definition PaaS Market Highlights ($M) Infrastructure SaaS Market Highlights ($M) PaaS Market 2013E Revenue Breakdown by Subsector Infrastructure SaaS Market Revenue Breakdown by Subsector PaaS Coverage: Vendors (2 slides) Infrastructure SaaS Coverage: Vendors (3 slides) PaaS: Vendor by 2013E Revenue Range Infrastructure SaaS: Vendor by 2013E Revenue Range PaaS Vendor Distribution (Public/Private Vendors) Infrastructure SaaS Vendor Distribution (Public/Private Vendors) PaaS Vendor Distribution (Revenue) Infrastructure SaaS Vendor Distribution (Revenue) Appendix: Public Cloud Criteria
4 Methodology Market Monitor s Bottom-Up Approach Return to Contents Question/ Briefing 344 Vendors included in analysis are estimated and forecasted individually Our cloud computing database contains individual models on 344 vendors in the market. Each model contains intelligence specific to that company (i.e., customers, pricing, deal sizes and trends) with a forecast that incorporates the unique traits, strengths and weaknesses of the vendor. 100% Of market estimate and forecast based on individual vendor estimates; no blackbox other category A bottom-up analysis entails creating individual estimates and forecasts for each market participant in lieu of relying on historical or related data, applying broad assumptions, or extrapolating market totals based on input from a handful of large vendors (a top-down approach). 9 out of 10 Vendors we have briefed directly to support our findings This analysis leverages our deep knowledge of and relationships within the cloud computing marketplace, resulting in proprietary forecast of industry revenue based on a bottom-up analysis of each vendor s current revenue and growth expectations.
5 Market Monitor Data Sources Return to Contents Question/ Briefing 15, CXO 6 Vendor briefings as a company annually Sector analysts support estimates Financial analysts contribute to MM Financial/banking clients provide insight Executive-level access across IT landscape End-user surveys performed annually
6 Appendix: Public Cloud Criteria Return to Contents Question/ Briefing Our Definition of a Cloud Service: With the cloud concept firmly embedded in the marketing lingo across the technology landscape, we constantly witness cloudwashing the practice of including many legacy products and services under a company s cloud umbrella. To enable us to sift through the marketing noise and gather data on true cloud offerings, we examine each product or service using eight primary attributes that together constitute and define a cloud service. These attributes should not be evaluated in isolation since each builds on the one before it, and there are clear dependencies, with certain cloud properties being difficult to architect without the appropriate supporting attributes. Only when the full stack is satisfied will an offering be included in our cloud computing analysis. These criteria are designed primarily as a yardstick for examining and evaluating various types of cloud offerings. Through proper use of the attributes, one can determine just how cloudy an ostensible cloud computing or storage offering is, and if that offering in fact qualifies as a cloud service using objective metrics. The eight attributes we use to determine what is and what isn t a cloud offering for this analysis are listed here. A more detailed discussion of each of these criteria is provided in 451 Research s free Cloud Codex report, which is available for download at
7 Greg Zwakman x122 Tim Miller x110 Yulitza Peraza x156 Victoria Simons x155 Dasha Davidenko x163 Kathleen Frodyma x168 Or
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