Cloud computing is fast becoming one of the most attractive industries to invest in. It has transformed the landscape of IT and as a result, it’s not surprising that the growth in cloud computing is outstripping the overall expansion of IT. It’s even continued to grow during the global recession.
The Growth of the Cloud: Key statistics
Cloud computing has raised the standards when it comes to IT infrastructure and access to software. Businesses that are yet to move to cloud are in a rush to embrace the technology, with 69% of CIOs surveyed planning to move to the cloud by the end 2014.
According to 451 Research, revenues in the public cloud market are set to grow at a compound annual growth rate of 36%, reaching at least $19.5 billion by the end of 2016. Plus, the study also showed that 69% of enterprises with separate budgets for cloud computing are planning to increase spending on cloud services in 2014.
And it’s not simply that businesses are planning to spend more. The scale at which the spending is increasing is remarkable—predicted to triple from 2011 to 2017. According to research firm, IHS, the $72 billion spent in 2011 will reach a figure of $235.1 billion just six years later.
Amidst global growth in cloud technology the US comes out top, accounting for 59% of all spending on cloud services from 2013 to 2016. Western Europe is currently a little way behind in second place, accounting for 24% of spending in that period.
But within the cloud technology industry, there are a variety of sectors and growth between these markets varies. At the moment, it’s SaaS solutions which are responsible for the bulk of the market revenue. If you look back at 2013, market revenue during this year reached $58 billion and SaaS solutions accounted for $36 billion of that total.
Quite simply, if cloud technology continues to grow at this rate, it won’t be long until cloud services become the norm in every office across the world.
How the Growth in Cloud Technology Affects the Contact Centre Market
If you look at the contact centre market in the US, you can see how cloud adoption began slowly and then spiralled. In 2008, the rate of adoption was only 2.2% but by the end of 2012, this had more than doubled to 5.9%.
However, what’s most interesting is what happens next. DMG predicts that by 2015 at least 18.1% of contact centres will be in the cloud.
There are several reasons to explain this sudden boost in cloud adoption. One of the main barriers preventing widespread adoption of cloud technology previously was security concerns, which most vendors have now overcome.
Also there’s the fact that the sector has seen huge investment, which has made cloud services increasingly efficient and cost-effective, widening the gap between what’s possible via the cloud and on-premise.
The gulf between the level of service offered by cloud solutions and traditional on-premise software is becoming so big, that many contact centres don’t see it as an option. Joining the cloud is fast becoming what people would expect.
Why Cloud Technology is No.1 Choice for US Venture Capital Investors
The figures speak for themselves and it’s not surprising that such incredible market growth has reached the ears of investors.
In the ninth annual Global Venture Capital Confidence Survey, US venture capital investors said that cloud technology was a market that they felt most confident in, compared with other leading sectors like mobile, enterprise software and healthcare IT.
At NewVoiceMedia, we’re seeing the result of this confidence in the cloud technology market. Last week, we secured Series E funding of $50 million from top technology investor, TCV and joined by existing shareholders BVP, Highland Capital Partners Europe, Eden Ventures, Notion Capital and salesforce.com. This has taken the total investment in NewVoiceMedia within the last 18 months to $105 million.
Prior to this investment, we’ve seen huge growth, leading to doubling of staff over the last year to meet the demand for our technology. In the last financial year, our license revenue grew at over 100%, outpacing the market fivefold.
While the whole industry is a success story, NewVoiceMedia has been picked out of the rapidly expanding market for our proven business model and innovative technology.
“TCV’s strategy is to invest in leading growth technology companies with a proven business model. We were impressed with NewVoiceMedia’s experienced leadership team, clear vision, relentless focus on excellent customer service, extremely rapid expansion and innovative multi-tenant cloud contact centre platform. We are thrilled to have the opportunity to help NewVoiceMedia continue its impressive growth”, said John Rosenberg, TCV.
The global cloud technology market has experienced huge growth over the last decade and is forecasted to expand further with huge investment. Here at NewVoiceMedia, we are poised to extend our global reach, with the right staff and technology to keep on growing.
What do you think the future has in store for cloud technology?