Cloud computing market share will reach $ 127.5 billion

Cloud Computing By 2018, 62% of CRM software is cloud-based, to consolidate its market position.

From Byron Deeter of State of the Cloud Report 2015 is displayed in cloud-based applications is still in its early stages. Many studies have also confirmed their results, that the cloud computing market is still at a preliminary stage. Here we look at the report from Byron Deeter

Cloud computing market is growing at 22.8% compound annual growth rate, and is expected in 2018 will reach $ 127.5 billion, while the figure in the end of 2014 is $ 56.6 billion, the largest of which is spent on a private cloud (26 billion).

SaaS spending to maintain this steady rate of growth. 30% of expected 2018 applications will be based SaaS applications. SaaS applications currently CAGR from 2013-2018 years will reach 17.6%. The local software development plan places the average annual rate of 2.8% per year lower.

In this prediction in 2018 that the 62% of CRM software based on cloud computing. From 2013-2018, it is expected to cloud-based CRM will grow an average annual rate of 19.6%. Saleforce still in the forecast will become the industry leader.The figure is estimated by BVP cloud index market three to five years, can be seen in the BVP Cloud Index forecast cloud market in 2020 will reach $ 500 billion in market capitalization. BVP transport index in 2010 to 2014 has reached 64 percent compound annual growth rate. The following diagram provides an overview of various possible development programs. Bessemer considered middle blue with 25% annual growth forecast is the most that can be achieved.

Bessemer proposes six key indicators in this study to define the value of the business value of cloud computing change over time. The six indicators, including annual recurring revenue (ARR),% ARR growth, retention or upsell, customer acquisition (CAC) return,% gross margin and combustion rate / free cash flow (FCF). ARR and ARR growth which is the most important indicator. Bessemer also found a strong up-sell strategies that can offset the negative impact of churn, and quantified in this study.

In the year 2015 the market value of the cloud vertically focused business reached $ 25.2 billion. Enterprise deep vertical markets and the ability to rapidly deliver new applications can be faster for enterprises to win more new customers in, and this will lead to an increase in vertical market reputation eventually lead to higher market valuations.

The impact of growth and application development for mobile end cloud computing market is growing, and enterprise mobility compared to individual users has more potential power. 80 percent of workers did not work at the desk and the current use of the Internet is from the majority of mobile devices. Global smart phone penetration rate is now 73%. From the findings of the report outlined the following two pages provide liquidity aspect of Bessemer.