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Partners poised for cloud revenue jackpot

By Nicholas Greene
SAP partners are expected to earn around US$33.6 billion in cloud and managed service revenues over the next five years, according to a new SAP-commissioned study by IDC.

The report, ‘Cloud and Managed Services: Growth Opportunities for SAP Partners’, said this estimate is based on a shift in the IT industry to “the Third Platform of computing”, made up of four key areas – cloud, big data/analytics, mobility and social business.

IDC estimates that over the next six years, 25 trillion gigabytes of new data will be generated, with a majority of it to be stored using cloud technology.

“By 2016, IDC predicts that approximately 25 per cent of all software revenue will be subscription-based, presenting new challenges and opportunities for the industry,” says Darren Bibby, vice president for channels and alliances research, IDC. “Business partners have a plethora of cloud and managed services solutions from SAP to resell and implement for their customers.”

Of the total cloud and managed service revenues, the report estimates that $20.6 billion will come from the Americas region, $9.0 billion from Europe, the Middle East and Africa, and $4.1 billion from Asia-Pacific Japan.

The study showed 53 per cent of companies have already adopted cloud services of some kind; 80 per cent are gaining knowledge about the cloud approach for a specific function in their organisations, and 72 per cent of organisations wish to have a mature cloud strategy inside the next two years.

The top 10 industries that are seeking cloud solutions and managed services from SAP are: manufacturing, communications, resource industries, professional services, retail, utilities, transportation services, insurance, banking, and wholesale.

IDC and SAP have published an infographic illustrating the results here.

 

Image: IDC

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