APAC public cloud service market to touch $12 billion revenues in 2016

The Asia-Pacific (AP) public cloud services market will
increase five fold over the next five years with revenues of $12 billion in
2016, according to Ovum.

The market will see compound annual growth rate (CAGR) of
34  percent from the $2.89 billion it will reach at the end of 2011.

Asia-Pacific will increase its share from 16
percent in 2011, to 18.8 percent in 2016.


Meanwhile, Europe, the Middle East and Africa will remain
the second-largest market over the forecast period. The region’s share will
increase from 27 percent in 2011 to 29 percent in 2016.

Western Europe will grow at a CAGR of 31.2 percent from
2011 to 2016 to reach $17.2 billion, up from $4.4 billion in 2011.

Eastern Europe will grow at a CAGR of 30.7 percent from
2011 to 2016 to reach $1.5 billion, up from $396 million in 2011. The Middle
East and Africa will increase at a CAGR of 31.7 percent from 2011 to 2016,
rising from $114 million to $451 million.

AP public cloud services market will grow at the fastest
rate amongst all the regions, growth will be driven by the rapid uptake in SME
segment as these enterprises continue to realize the strategic gains associated
with the shift to cloud,” said Saurabh Sharma, senior analyst for Market

Increasingly favorable economic conditions and the fast
improving infrastructure environment will serve as a major enabler for uptake
of cloud services in this region. In AP, Australia, New Zealand, China and
India will grow at faster rates while Japan remains the top contributor to
regional cloud services market.

Recent moves by the major cloud service providers to set
up datacenters in AP further underline the increasing strategic importance of
the region in the global cloud services market,” Sharma added.

In terms of the cloud computing service lines globally,
SaaS will shrink from 87  percent of the market in 2011, to 62
 percent in 2016, due to the rise of IaaS and PaaS, which will grow from
nine  percent and five  percent, respectively, to 23  percent
and 16  percent, at the end of the forecast period.

While the market is growing at a fast pace and players
such as Amazon and Google are making much progress, the impact of public clouds
will not be to render IT departments obsolete, but rather to shift their
focus,” said Laurent Lachal, cloud computing senior analyst at Ovum.

Shifts will include taking a more holistic approach to
connecting networks, hardware and software. IT departments will also reduce
their emphasis on maintenance and increase their innovation, while being
encouraged to take more risks, by giving employees the capacity to tackle
high-reward ventures.

By Telecomlead.com Team
[email protected]