Story image

Cloud as a Service revenue from carrier providers to hit $10 billion

22 Apr 16

Cloud-as-a-service revenue from telecom operators is set to reach nearly $10 billion annually in 2019, according to new forecasts from Technology Business Research.

Figures from TBR’s Carrier Cloud Market Forecast 2014-2019 show that while carrier cloud providers will continue to increase revenue annually, growth will decelerate over the next several years due to strong competition from pure plays and other cloud providers.

“Public cloud revenue growth started decelerating significantly in 2015 due to more businesses shifting to private and hybrid cloud solutions,” explains TBR executive analyst Michael Sullivan-Trainor.

“Though public cloud services will remain the prominent source of carrier cloud revenue, private cloud services are growing at a higher rate as more enterprises prefer the platform’s enhanced security,” he says.

Sullivan-Trainor says the shift away from public cloud is also influenced by competitive pressures.

“U.S. carriers are struggling to gain traction in the public cloud market against seasoned competitors, such as Amazon Web Services, that are offering broader, more affordable service portfolios,” he explains.

“Instead of attempting to outcompete incumbent cloud vendors, telcos are focusing on partnering with these companies providing network connectivity to their services through interconnection platforms such as AT&T’s NetBond.”

The analyst firm also examined the carrier cloud market within service segments, including IaaS, SaaS and PaaS.

According the forecast, there will be a limited number of public cloud IaaS vendors by 2019 as IaaS becomes highly commoditised.

Conversely, the maturing SaaS market will cause revenue growth to decelerate through 2019, TBR says.

To bolster SaaS revenue, the company says carriers will collaborate with software providers to offer solutions targeting new lines of business and verticals.

Kiwis make waves in IoT World Cup
A New Zealand company, KotahiNet, has been named as a finalist in the IoT World Cup for its River Pollution Monitoring solution.
Can it be trusted? Huawei’s founder speaks out
Ren Zhengfei spoke candidly in a recent media roundtable about security, 5G, his daughter’s detainment, the USA, and the West’s perception of Huawei.
Oracle Java Card update boosts security for IoT devices
"Java Card 3.1 is very significant to the Internet of Things, bringing interoperability, security and flexibility to a fast-growing market currently lacking high-security and flexible edge security solutions."
How SMBs can use data to drive business outcomes
With the right technology, companies can capture consumer, sales, and expense data, and use it to evaluate and construct future plans.
Survey shows that IoT is RoI across Asia Pacific
A recent Frost & Sullivan survey across Australia, Hong Kong and Singapore shows that IoT deployment improves business metrics by around 12%.
Sophos hires ex-McAfee SVP Gavin Struther
After 16 years as the APAC senior vice president and president for McAfee, Struthers is now heading the APJ arm of Sophos.
Security platform provider Deep Instinct expands local presence
The company has made two A/NZ specific leadership hires and formed several partnerships with organisations in the region.
Half of companies unable to detect IoT device breaches
A Gemalto study also shows that the of blockchain technology to help secure IoT data, services and devices has doubled in a year.