Cloud Money

Public Cloud Revenue Reaches $6.2 Billion in Q4 2013: Report

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Public cloud revenue in Q4 2013 grew nearly 50 percent year-over-year to $6.2 billion, according to a new study released last week by Technology Business Research.

According to TBR’s 4Q13 Public Cloud Benchmark, which covers 50 different public cloud vendors, revenue was up 47.4 percent from Q4 2012. Market growth for overall public cloud services grew 25.6 percent year-over-year during the same period to $15.1 billion.

“With the acquisition landscape relatively quiet over the past six months, leading public cloud vendors are evolving go-to-market strategies to embrace ecosystem-led approaches that are needed to increase reach and serve the broadest markets,” Jillian Mirandi, senior analyst for TBR’s Cloud Practice said. “A large and diverse ISV partner base will help tailor products vertically and horizontally, increasing vendors’ stickiness, while C&SI alliances help create new use cases and improve overall value propositions.”

Leading IaaS providers like AWS and Google are expanding Consulting and Systems Integration partnerships to customize services in order to meet enterprise customer needs, according to the research.

In order to expand reach within customer bases and improve sales, public cloud leaders across SaaS, PaaS and IaaS will invest in emerging business intelligence, analytics and big data in 2014. An earlier study by IBM identified big data as a particularly significant challenge to marketing organizations over the next few years, creating an opportunity for cloud providers to address these concerns.

Already public IaaS vendors including GoGrid, Microsoft, Rackspace and AWS have invested in technological collaborations with BI, Hadoop and NoSQL database providers in order to optimize their cloud portfolios for big data workloads.

According to the research, in order to fill capability gaps and expand geographically, large IT vendors will drive public cloud consolidation through acquisitions in 2014. In particular, IBM, HP and Cisco are expected to “make notable public cloud acquisitions” this year. In March, Cisco announced that it would invest $1 billion over the next two years to support its cloud services.

About the Author

Nicole Henderson is the Editor in Chief of the WHIR, where she covers daily news and features online. She has a bachelor of journalism from Ryerson University in Toronto. You can find her on Twitter @NicoleHenderson.

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