Questions On The Cloud Industry

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I. TRASNFORMATION: ON-PREMISE TO HOSTED AND REMOTE a. CLOUD INDUSTRY WWSMB spending on ICT has risen steadily; there is clear shift to hosted and remotely managed solutions than having on premise IT products/services. By the year end of 2014, WW SMBs will have spent over $1 Trillion in ICT solutions. Emerging markets form an imperative part of the growth in spending in cloud solutions. Markets like Asia pacific and Latin America are adopting the new technology shift at a very rapid rate. Cloud solutions are expected to grow at CAGR of over 25% in Asia Pacific and Latin America at a CAGR of 21%. But mature markets still hold a major chunk of the cloud related spending. According to a report by AMI-Partners of 2014, $7 out of every $10 spent on cloud solutions will be driven by mature markets like North America, Western Europe or Mature Asia Pacific markets. There is mix of niche and multi-industry could vendors in the market. One example of a niche industry-focused solution is Veeva, a provider of cloud based solution for medical representative in the pharma industry that has generated impressive growth and margins. One of the most important reason or the success was the competition that was present was only for on-premise technology and couldn’t compete with the more mobile and cloud solution, which was needed for this profile. Figure 1: Cloud Industry b. GROWING DEMAND FOR ‘INDUSTRY CLOUD’ SOLUTIONS As a result of the growing demand for cloud-based industry-specific
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