Cloud software revenues to reach $2.5B in 2015

The worldwide cloud systems management software market will experience strong growth over the next several years, reaching $2.5 billion by 2015. According to new research from IDC, many IT customers can expect to manage a hybrid mix of public cloud, private cloud, and non-cloud IT resources for some time. “They will need highly automated and integrated system management software tools to optimize IT processes and application performance across these dynamic hybrid cloud environments," the analyst firm said. IDC said it expects that the ability to manage hybrid clouds seamlessly and effectively will become a critical differentiator and control point for system management software vendors during the forecast period. “Demand for cloud systems management software will ramp up as cloud adoption hits a tipping point," said Mary Johnston Turner, research director for enterprise system management software at IDC. “As customers begin to recognize the economic and performance benefits of cloud technologies, there will be a significant shift from targeted, pilot implementations to broader production uses. As cloud adoption reaches a tipping point and becomes mainstream, we expect this market to experience a robust 45.5 percent compound annual growth rate (CAGR) between 2010 and 2015." Other key findings from IDC’s forecast:

• In 2010, 70 percent of worldwide cloud system management software purchases were deployed in private cloud environments.
• The Americas represent 63.1 percent of the worldwide market in 2010, but EMEA and Asia Pacific will make steady gains through the forecast period.
• For major vendors, cloud systems management represents an opportunity to establish long lasting, “sticky" strategic relationships with customers.
• For emerging vendors, it will be critical to develop products and SaaS solutions that easily plug and play with broader cloud systems management environments.