banner ad
banner ad

BPV Cloud Index Shows Untapped Potential

| October 26, 2014

cloud_index_1_07282014In an industry with over $1.4 trillion dollars (July 2013) being spent in Data Center Systems, Enterprise Software, and IT services, the surge of companies moving to the cloud has grown at an extraordinary rate. In order to jump on this growing cloud bandwagon, companies are doing everything in their power to provide a cloud service among their product offerings. BVP’s (Bessemer Venture Partners) comprehensive and dynamic market index tracks company’s market fluctuations on a weekly basis mapping the rise and fall of the industry. According to the BPV Cloud index, 30 of the largest public cloud computing companies have a combined value of over $100 billion dollars. This milestone proves that the cloud industry has made significant growth toward the overall maturity of the market and has room to expand further. Since 2012, the BVP index has grown 68% beating out both the NASDAQ and S&P 500.

In the cloud industry there are three types of cloud providers which are public cloud, private cloud, and hybrid cloud offerings. Cloud offerings allow companies to reduce their IT cost by an average of 35% with the adoption of these services making it ever so important to move to the cloud. Among the three types, the public cloud is dominating the industry by reducing the cost of ownership in deploying cloud services with the private cloud sector taking the silver medal. With over 300 companies and growing, the private cloud is the fasting growing of the three segments among end users and is expected to grow over 20% by 2020. Currently only 2% of total IT spending is being used in the cloud sector which leads one to believe that this number can only grow as the need for cloud services continues to develop.

With the extended growth of cloud services experts suggest that the total market size by the year 2020 will reach up to $555 billion dollars more than 5 times its current size. The predicted growth of the industry will drive more companies to join in on this growing market in hopes that they too can plant themselves for the future. The growth of cloud services are not only happening at home here in the U.S. but also globally with the APAC region being the fastest growing region while also having the smallest actual market size. It appears that for the cloud services industry the best is yet to come.

Category: Feature Articles

Comments are closed.