December 19, 2011
How Big Will Cloud Computing Revenues Be in 2016?
By Gary Kim, Contributing Editor
The cloud computing market will represent $240 billion worth of revenue by 2016, up from $77 billion in 2011, according to Visiongain (News - Alert).
Visiongain believes that mobile cloud service revenues will reach $45 billion in 2016, with a compound annual growth rate of 55.18 percent from 2011. Cloud computing forecast
At year end 2016, more than 50 percent of Global 1000 companies will have stored customer-sensitive data in the public cloud, Gartner (News - Alert) researchers also believe.
Those forecasts are higher than some forecasts in early 2011. To forecast revenue, analysts start with the concept of average revenue per employee per month. Yankee Group (News - Alert) calculates average revenue per employee for software as a service (SaaS), infrastructure as a service (IaaS) and platform as a service (PaaS) as $4, $2 and $1, respectively.
For example, a typical enterprise will spend $4 per employee per month on SaaS (News 
- Alert). This is equivalent to $48 per year per employee, or what a small business or sole proprietor might pay for an online backup service such as Mozy or Carbonite and simple collaboration software like Evernote or Dropbox.
All of that adds up to annual revenue of about $23 billion by 2014, Yankee Group has estimated... Read More
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