Clouds Contribute Less than 5 Percent of Revenue for Many Global ICT Players

Keeping Cloud Bubble from Bursting Requires Better Alignment of Expectations and Business Models

Jun 13, 2013, 08:00 ET from Strategy Analytics

BOSTON, June 13, 2013 /PRNewswire/ -- Information and Communications Technology (ICT) providers are chasing clouds as if there is a pot of gold at the end of the rainbow that immediately delivers huge revenue for providers and cost savings for customers.  The reality is that for non-cloud natives, cloud-related hardware, software and services revenue represented only 1-4 percent of total revenue in 2012 based on an analysis of a sample group of global ICT providers including CSC, Dimension Data, HP, IBM, Microsoft, Orange, and SAP.  By 2015, these percentages will rise to 5-9 percent of total revenue according to Strategy Analytics Business Cloud Strategies service (BCS) insight "Chasing Clouds: Largest Opportunities Can be Found Inside Existing Businesses and Customers." 

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"Despite all the attention paid to clouds, cloud products and services still contribute only a tiny portion of total revenue for most IT software, hardware and service providers.  It will take 5-10 years for significant cloud-related provider revenue and customer savings to be realized," commented Mark Levitt, Director of Business Cloud Strategies research at Strategy Analytics. 

"Now is the time to make the right decisions regarding what business cloud market segments, strategies and partners to pursue.  Otherwise, cloud computing could turn into a bubble and bust for many providers," said Andrew Brown, Executive Director of Enterprise Research at Strategy Analytics.

About Strategy Analytics

Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success. 

US Contact: Mark Levitt, +1 617 614 0700,

European Contact: Andy Brown, +44(0) 1908 423 630,

SOURCE Strategy Analytics