Enterprise Software-as-a-Service market revenue will reach $53.5 billion in 2018, representing 59 percent of the enterprise public cloud computing market, rising from $23.2 billion in 2013, said Juniper Research.
SaaS (Software-as-a-Service) will remain the dominant cloud model mainly due to the relative maturity and widespread acceptance of the model, as well as recognition of the comparative benefits and risks of commissioning cloud-based software.
However, enterprise take-up of PaaS (Platform) and IaaS (Infrastructure) solutions has been adversely impacted by concerns over data security, compliance and portability.
Earlier Gartner said that new IT buying based on the Nexus of Forces will drive more than 26 percent of total enterprise software market revenue by 2017 against 12 percent in 2012. This represents more than $104 billion to new worldwide enterprise software revenue from cloud, information, mobile and social initiatives in 2017.
“Starting in 2014, the enterprise software markets will undergo their greatest level of disruptions, growth and new opportunities since the year 2000,” said Tom Eid, research vice president at Gartner. ”
Juniper Research said both PaaS and IaaS will experience significant growth over the forecast period as new applications, developed specifically for the cloud to harness workloads such as big data analysis, benefit from the PaaS ‘fast-track’ model.
Service providers are increasingly providing multi-lingual support, and improving portability through initiatives such as Cloud Foundry, while consolidation of PaaS as an extension of other cloud services is showing a rising trend.
Meanwhile, IaaS is becoming increasingly attractive to SMBs.
According to Gartner, while business intelligence (BI) and analytics have been a top CIO priority for years, recent purchasing patterns show that spending with CIOs is in more of a wait and see mode. Most net new spending is currently driven from outside the IT department.
BI, analytics and data analysis are well-established for most large companies in traditional subject areas, such as finance and sales, but there is still extensive growth potential for diagnostic, predictive and prescriptive projects, said Gartner.