Cloud Infrastructure Market to Reach $306 Billion

Reportlinker Review is a series of posts featuring Innovations, Social and Economic Megatrends to understand the World of Tomorrow. Each post is illustrated with statistics for one industry.

 Reportlinker’s Cloud Infrastructure Review in a nutshell

  • Microsoft Azure partners with SAP
  • Stock for Azure increasing rapidly in value
  • Microsoft also sees growth in subscriptions

How is the Cloud Infrastructure Market ?

The cloud infrastructure market is forecasted to reach $306.7 billion by 2025.  This represents a compound annual growth rate (CAGR) of 13.5% from 2015 to 2025.

Microsoft Corp. and SAP have partnered to make SAP’s cloud-based human capital management solutions, SAPSuccessFactorsHCM Suite, available on Microsoft Azure by 2021.

By using Azure, SAP will be able to support its growing client base.  SAP has 42 million users.

The move helps companies worldwide maximize employee potential, Microsoft said.

This marks the first time SAP has used a third-party cloud service.  Azure also will support SAP HANA for analytics.

Microsoft’s cloud business is seeing significant growth.  Recently, stocks reached $90.75 a share.  Revenue for the first fiscal quarter, ending in September, increased 116%.

The increase is part of CEO Satya Nadella’s goal of evolving Microsoft in a cloud and mobile driven market.

“Cloud growth offset declines in traditional licensing in key product segments like Commercial Office, as Microsoft maintained its steadfast emphasis on increasing lifetime customer value,” Kelsey Mason, a technology business research analyst, told ARN.

Of the Fortune 500 companies, 60% use at least three Microsoft cloud services.

Microsoft competes against Amazon Cloud Services which is expected to earn $10 billion in revenue this year.  It also competes against Alphabet, Oracle and IBM.

This year, cloud services will generate $96 billion in revenue, according to IDC.  By 2020, that is projected to increase to $200 billion, a 20% increase.

Cloud services are divided into three categories:  software as a service (SAAS) and platform as a service (PAAS), which comprise 83% of revenue, and infrastructure as a service (IaaS), which accounts for the remaining 17%.

IaaS is forecasted to grow significantly by 2020.

Subscription Growth

Meanwhile, Microsoft Office 360 subscribers increased to 24 million as customer sales grew 8%.  Commercial sales grew 51%, reaching 85 million monthly users.  This is 40% higher than the first quarter of 2015.

Microsoft 360 currently has 109 million subscribers.

The company’s productivity and business processes segment, reached $6.7 billion, growing 6% and accounting for nearly a third of revenue during the first quarter.

ReportLinker Review – Global Cloud Infrastructure Market (source: Stratistics MRC)

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