Survey shows companies are looking to monetize the cloud
The number of cloud-based products and platforms available today is simply mind-boggling. Yet, there is space for more companies to join the bandwagon of providing cloud services to individual and corporate customers because the demand for cloud is so high. As more individuals and companies turn to cloud for storage and computation, this market is expected to see explosive growth over the next few years.
To tap into this power of cloud and to take a share in the burgeoning cloud market, many companies are looking to monetize their cloud service. In other words, companies that are both directly and indirectly involved in the cloud market, want to get revenue from their cloud products. According to a survey conducted by North Bridge, a growth equity and venture capital firm, and Wikibon, a research analyst firm, a whopping 79.9% of companies involved in the cloud market get some form of revenue through the cloud. Further, 42% of the 1,351 companies surveyed get at least 50% revenue from cloud.
These numbers are significant as they reflect the growing might of cloud, and its pervasiveness among both individual and corporate customers. Also, it shows that more companies are looking for ways to leverage cloud-based services to boost their income streams, rather than being passive players. For example, let’s say, company A has been taking the services of a cloud provider to achieve operational efficiency and to cut back on its costs. Seeing the potential of cloud, it wants to integrate this cloud service into its own product, so the benefits are passed on to the end customers. This reports shows that two out of every five companies that are using cloud services are thinking along these lines. They have either successfully launched such products or are in the process of doing so.
The report, however, does not mention how much monetization is happening, but it can be surmised that much of the revenue is coming from cloud-based e-commerce applications. A similar report published in July 2016 shows that cloud spending is growing by leaps and bounds. It is expected to increase from $75 billion in 2015 to $522 billion by 2026, resulting in an average annual compound growth rate of 19%. This represents a multi-fold increase in revenue, that is likely to come from a wider adoption of cloud across varied sectors including government, healthcare, insurance, and retail. Also, this adoption is expected to spread across the entire world within a decade, so the benefits are shared by customers, regardless of their physical location.
The report further states that cloud will account for nearly 50 percent of all spending related to hardware, software, and outsourcing services, by 2026. The biggest cloud providers are the ones who are likely to gain the most from this wider adoption of cloud, and this is already showing in the increasing revenue of companies like Amazon Web Services (AWS), Microsoft, SAP, Oracle, Baidu, and IBM. However, the others involved in this market are also expected to gain much from this trend. In all, it’s bounty time for anyone involved with the cloud.