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Cloud revenue will go on expanding – slowly

ChannelWeb - As the cloud hype fades, will the market be all that resellers hope for? Analysts are suggesting that smaller companies and IaaS, as well as competition from telcos, will increasingly move centre-stage.

Steve Hilton, principal analyst at global market watcher Analysys Mason, says enterprise cloud services revenue will go on expanding, reaching $31.9bn (£20.4bn) by 2017. Some $28.7bn of this will come from the so-called developed nations, representing a compound annual growth rate of 11 per cent.

That is slower than initially predicted due to the global economic downturn, but IaaS is slowly changing places with SaaS, and sales to SMBs with one to 249 seats will become increasingly important, rising to 49 per cent of the market by 2017, he adds.