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Cloud Revenue Numbers Show Exponential Market Growth with No Signs of Slowing

July 31, 2015

That cloud computing has become a disruptive and pervasive part of the technology world is no surprise these days. The cloud impacts most aspects of technology and is certainly playing a significant role when it comes to delivering real-time communications solutions.

According to Forrester Research, organizations are expected to spend $106 billion on SaaS by 2016, comprising around 17 percent of total application spending in the enterprise. That’s a pretty significant number, and the fact that market leaders like AWS and Microsoft are breaking out cloud revenues as separate earning sources is a good indicator of just how powerful the sector has become.

For the second quarter in the row, AWS sales have been broken out of Amazon’s overall revenues and they’re up a whopping 81 percent from the previous year. That translates to $1.82 billion in revenues for the quarter, with AWS set to pull around $8 billion in annualized cloud revenues.

Not to be outdone, Microsoft said it is also on track to make $8 billion in annualized commercial cloud revenues, which is slightly different than AWS. Microsoft competes directly with AWS through its Azure infrastructure and services, but counts Office 365 and additional SaaS offerings in its cloud revenues. And IBM claims its cloud revenues were $8.7 billion for the past year, up 70 percent from the previous year in the first half of 2015.

So we now have some hard numbers to back up the hype surrounding cloud computing, and the next phase of its evolution is to discover its potential. Cloud infrastructure, PaaS and SaaS have been the biggest areas of growth so far, but the cloud has even greater potential to transform the way business is being conducted. Organizations are currently using the cloud for some services, but the cloud still hasn’t become an integral part of budgeting and planning. And that is set to change.

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CIOs are tasked with selling the benefits of the cloud to their organization, while being cautious about issues surrounding security and data governance. It’s a tall order that requires bringing together different departments and teams within an organization to gain a full understanding of how it can benefit from the cloud.

Ultimately, organizations need to find a balance when it comes to migrating from their outdated legacy systems to the cloud. But as the cloud becomes more secure, more efficient and more pervasive, it’s going to become a no-brainer as the choice for certain integral enterprise applications and services.

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