Enterprises are using cloud services for strategic benefits such as supporting digital transformation efforts rather than for tactical ones, like reducing IT infrastructure costs and the hardware or software maintenance burden.
Overall, ABI Research estimates that the installed base for RaaS will grow from 4,442 units in 2016 to 1.3 million in 2026. The yearly revenue from RaaS providers is expected to increase from $217 million in 2016 to nearly $34 billion in 2026.
IT services deals experienced a steep decline in 2017, both in terms of the number of deals and total contract value (TCV), compared to both 2016 and 2015. While the TCV witnessed a significant annual decline of 33.3% in 2017 to reach a value of $61.4 billion, the number of deals announced (4,099) saw a considerable decrease of 25.6% in 2017.
Digital transformation projects have fueled the IT budgets of all business types. Total IT spending by small and medium-size businesses (SMBs) will approach $568 billion in 2017, and exceed $676 billion by 2021, according to the latest worldwide market study by International Data Corporation (IDC).
Source: Digital Lifescapes
The Managed Services Provider (MSP) market, occupied by companies that provide contingent workforce management, is flourishing, logging a robust growth rate of 12 percent in 2016 to reach $300 billion in managed spend.
Source: Everest Group