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Blog Suggests 78 Percent of Small Businesses Will Use Cloud Services by 2020

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Blog Suggests 78 Percent of Small Businesses Will Use Cloud Services by 2020

September 30, 2016
By Paula Bernier
Executive Editor, TMC

Great big multinational organizations, good-sized enterprises, medium-sized firms, and even small businesses – all of the above are exploring and implementing cloud computing. And while smaller businesses can sometimes be hesitant to embrace new technologies, this group certainly hasn’t shied away from cloud computing. In fact, according a Telappliant blog posted yesterday, 78 percent of small businesses are expected to be using cloud services by 2020.

That’s because of the many benefits of the cloud. The blog runs through 15 cloud benefits, a few of which include access to enterprise-level technology at a fraction of the cost and time that would be required for an on-premises implementation, a reduction in IT expenditures, fewer management hassles, high reliability and availability, unlimited storage, and more.

Amazon Web Services remains the leader in cloud market share, owning about 31 percent of the market globally, according to Synergy Research. Then comes Microsoft with 9 percent, IBM with 7 percent, and Google (News - Alert) and Salesforce, each with 4 percent, Synergy Research reports.

“The big four cloud operators are continuing to run away with the market,” said John Dinsdale, a Chief Analyst and Research Director at Synergy (News - Alert) Research Group. “The second tier of operators are either niche players, generalist IT service providers, or companies lacking the scale, focus and investment capabilities required to truly challenge the top four hyperscale cloud providers. This second tier includes Salesforce, Rackspace, Oracle, NTT, Fujitsu, Alibaba and HPE.”

Synergy in its report noted that Microsoft (News - Alert) and Google have the highest growth rates among cloud market leaders by far, but suggests that’s having little impact on AWS. However, some have suggested that Microsoft Azure could eventually leapfrog AWS. (Synergy, by the way, says Microsoft in the fourth quarter of last year experienced 124 percent year-over-year growth in cloud infrastructure service revenue and market share.)

Meanwhile, Oracle last week at Oracle OpenWorld pledged to take over AWS as the leading cloud provider. Indeed, Larry Ellison (News - Alert) himself in a keynote address said that Amazon’s “lead is over” and that AWS is about to get “serious competition going forward.”

Edited by Alicia Young

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