THE RISE OF CLOUD ERP

Posted by: RAMAN on  14th August 2017


THE RISE OF CLOUD ERP

By 2016, public IT cloud service spending will reach $98 billion.
The compound annual growth of Cloud IT is 5 times the growth of the IT industry overall.

CLOUD IT MARKET DISTRIBUTION

The United Stated remains the largest public cloud services market (44% share in 2016), followed by Western Europe (25%) and Asia/Pacific (excluding Japan) (20%)
2011-2016 COMPOUND ANNUAL GROWTH RATES
  • 66.5 Latin America
  • 48.6 Central and Eastern Europe
  • 43.6 Middle East and Africa
  • 41.7 Asia pacific
  • 35.8 Japan
  • 30.3 Western Europe
  • 27.8 Canada
  • 18.5 United States
The fastest growth will be in emerging markets, growing collectively at 44%. Emerging markets cloud spending account for almost 30% of net new public IT cloud services spending growth in 2016.

WHAT IS NEXT FOR CLOUD?

Obviously it is crucial to time the market and get a sense of which workloads are perceived as cloud-ready. As little as two years ago, there were only a few obvious workloads that were dominating the mind-share of customers.
  • Business Applications
  • CRM Applications
  • ERP Financial/Accounting Applications
  • HPC Applications
  • Human Resources Applications
  • Office Productivity Applications
  • Supply Chain and Logistics

WHAT CUSTOMERS ARE ASKING FOR

  • 63% Of customers – Expect to have a single major Cloud service provider.
  • 84% of customers – Want an established relationship with a vendor to trust them as a cloud service provider.
  • 67% of customers – Expect to purchase a wide variety of cloud services from a single vendor.
  • 74% of customers – Expect their cloud service provider to be able to move a cloud offering back on-premises if needed.

CUSTOMERS WANT THE HYBIRD MODEL

While cloud growth rates are undisputedly stellar, a balance between on-premises and cloud spending is the reality. This is known as the Hybrid Model and this is the model emerging alliance is built around.
Buyers intend to selectively source more IT capability in the public cloud but will also focus on keeping a significant portion of their assets on premises.
By 2020, about 80% of the world’s 2000 largest companies will still have greater than 50% of their IT onsite.

MORE AND MORE BUSINESSES ARE MOVING THEIR WORKLOADS TO THE CLOUD. ARE YOU READY?

Get started today.
 
 
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