SaaS Revenues to Exceed $53 Billion

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A new report from Juniper Research forecasts that revenues generated from enterprise Software-as-a-Service will reach $53.5 billion in 2018, representing 59% of the enterprise public cloud computing market, rising from $23.2 billion in 2013.

According to the report, Cloud Computing – Enterprise Markets: SaaS, PaaS & IaaS, 2014-2018 – SaaS (Software-as-a-Service) will remain the dominant cloud model. This is due in part 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, it argued that enterprise take-up of PaaS (Platform) and IaaS (Infrastructure) solutions has been adversely impacted by concerns over data security, compliance and portability.

Nevertheless, the report found, 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 and enterprises alike owing to a high level of control over the software stack and security implementation, alongside a growing understanding of the need for proper risk assessment.