With the cloud market expected to grow to $121bn in 2015, a 26% compound annual growth rate from 2010’s $37bn, 81 percent of firms are forecasting a move to the cloud for half of their future transactions.
So what are the drivers for the growth in the cloud market? With 60% of CIOs stating that their number one priority is cloud computing, a major driver has been the adoption of Software as a Service (SaaS) technology. By 2017, SaaS is set to generate almost 60% of cloud revenues. The move to SaaS is primarily driven by its ability to offer greater scalability, higher efficiencies with no loss of functionality, and reduced application costs, with a move to the cloud offering annual savings of over 20%.
How are these trends reflected in the Service Management market? IDC Research sponsored enterprise software firm Axios highlighted that every second company that now uses on-premise IT Service Management software plans to launch a cloud-based version within the next two years. For many organisations, cloud has already become mainstream and their ITSM
Scott Leckie, CTO at Axios Systems, said: “We’re seeing a shift in the market, with SaaS gaining substantial traction over the past year. Why is Service Management so suitable for cloud? For us, the move has been driven by a significant increase in user mobility and range of devices from which users require access to technology, anywhere and at any time. SaaS technologies fully support this, and provide compliance without sacrificing on functionality or standards for data security or speed.”
Tasos Symeonides, CEO at Axios Systems, said: “Here at Axios, we’re seeing a 25% compound annual growth rate in the uptake of SaaS, which reflects the current trends in the cloud industry as a whole. IT leaders are seeing the benefits of moving to the cloud, allowing them to be more agile and responsive to business needs.”
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