Page 11 - CSAM2 - Successful Sales Engagement for Cloud Services

Supporting Student Notes:

• The global cloud computing market will grow from $40.7 billion in 2011 to more than $241 billion in 2020,
according to new Forrester forecast data reported in Sizing The Cloud by Stefan Ried, Ph.D. and Holger Kisker,
Ph.D.

• Based on Forrester’s cloud market taxonomy, this new report outlines the different market dynamics for the three
core layers of cloud computing – the public cloud, the virtual private cloud, and the private cloud. The total size
of the public cloud market will grow from $25.5 billion in 2011 to $159.3 billion in 2020. The market for virtual
private cloud solutions will grow from $7.5 billion in 2011 to $66.4 billion in 2020. The market for private cloud
solutions will grow from $7.8 billion in 2011 to $15.9 billion in 2020.

• So how do we digest this number, 241 Billion by 2020? Lets try this: overall IT spending for 2011 is 3.6 Trillion. 241
Billion (although that’s the projected spend for 2011) is some 6 percent of that. And why is this huge? Try this for
scale: the world spent a grand total of 30.5 billion on operating systems last year.

• IDC, in a study sponsored by Microsoft, predicts that cloud computing will generate nearly 14 million jobs
globally by 2015. This prediction assumes that companies moving to the cloud will generate more revenue and
cost savings, which in turn will lead them to create jobs. The IDC study predicts that IT innovation enabled by the
cloud could help increase business revenue by $1.1 trillion by 2015, concluding that this would lead to an uptick
in jobs across many different fields. What's different about the IDC findings is that they look at the business
efficiency around the use of cloud computing. This is in direct contrast to the hype-driven excitement around the
use of new and cool cloud computing technology that promises to change IT. In other words, cloud computing will
help businesses do better and thus create jobs -- not that cloud computing will create the jobs required to
support cloud computing. Those jobs related to overall business growth are much more systemic and longer
lasting.