The worldwide hosted private cloud revenue is projected to increase from $8.9 billion in 2014 to $40.6 billion by 2019, with a CAGR of 35.4%. Organizations are expected to significantly boost their IT spending on private clouds, with projections indicating that 50% to 60% of IT infrastructure will be cloud-based by 2020. The document highlights growth potential for SAP partners in managed cloud services as customer adoption rates rise.

1. Worldwide hosted private cloud
revenue will grow from
$8.9B in 2014 to
at a CAGR of 35.4%
to provider-based cloud services in 2016
compared to 2014 (public and private)
Customers plan to devote nearly
30% more of their IT spend
Allocation of funds to private
cloud will double this year
12% in 2014 to
23% IN 2016$40.6B IN 2019
Customer value proposition
✔ Use OpEx
✔ Lower cost
✔ Faster implementation
✔ One contract
Partner value proposition
✔ Specialization
✔ One-stop shop
✔ New customers
✔ Repeatable solutions
of customers are
embracing or
deploying cloud
80%
and 70% of all software, services, and
technology spending by 2020
50% OF IT SPENDING
reaching 60% of all IT infrastructure
will be cloud basedwill be offsite in colocation,
hosting, and cloud datacenters
BY 2018
65% OF FIRMS' IT ASSETS
An IDC Infographic, sponsored by SAP
Partner Managed Cloud
Growth Opportunity for SAP partners with
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