Page 15 - CSAM2 - Successful Sales Engagement for Cloud Services

Supporting Student Notes:

• Positive demand and supply side factors indicate that adoption levels for IaaS will be on the rise in the near future.
Increasing data center expenditure by enterprises and emerging SMEs (small and medium enterprises) eying
significant investments in IT infrastructure are fueling demand in this space. At the other end, a competitive IT
market is driving the supply of IaaS. Gartner's Cloud Computing Special Report on IaaS suggests that the segment is
set to grow nearly threefolds from $ 3.7 B in 2011 to a whopping $ 10.5 B in 2014. There is currently a lot of hype
going around IaaS and an increasing number of enterprises are showing interest in this area. Gartner estimates that
over the course of the next five years, enterprises will be spending $112 B cumulatively on SaaS (Software as a
Service), PaaS (Platform as a Service) and IaaS. United States, Western Europe and Japan will be holding a major
share of the global cloud market.

• Cloud computing will continue to reshape the IT landscape over the next five years as spending on public IT cloud
services expands at a compound annual growth rate (CAGR) of 27.6%, from $21.5 billion in 2010 to $72.9 billion in
2015 according to new research from International Data Corporation (IDC). The United States will dominate overall
spending throughout the forecast period, with nearly 50% of all public IT cloud services revenues coming from the
U.S. in 2015 but there are more cloud services vendors and greater end user spending in Asia/Pacific and Western
Europe than previously thought