If there was ever any doubt regarding the growth potential of cloud computing, this uncertainty has likely faded with the increasing adoption of the technology on a global scale. A recent IDC report indicated the public cloud market totaled $46 billion in 2013, with this figure expanding at a compound annual growth rate of 23 percent through 2018.
Frank Gens, senior vice president and chief analyst at the research firm, asserted the cloud industry is at a critical point in terms of vendor leadership and innovation.
"IDC's Public Cloud Services Tracker shows very rapid growth in customer cloud service spending across 19 product categories and within eight geographic regions. Not coincidentally, we see vendors introducing many new cloud offerings and slashing cloud pricing in order to capture market share. Market share leadership will certainly be up for grabs over the next 2-3 years," Gens suggested.
Businesses don't have to look far to witness first-hand how cloud computing is influencing various IT verticals, specifically customer relationship management suites. IDC said cloud-based CRM revenue totaled more than $8.1 billion in 2013, accounting for 18 percent of the entire public cloud industry last year. Through 2018, CRM applications will experience a CAGR of 20 percent.
The ability of the workforce to access cloud-based CRM provides immense benefits to mobile employees who are constantly working from the field. For example, sales representatives preparing for a face-to-face client meeting can use their laptops, tablets and even smartphones to access the CRM suite to view updated information such as open orders, year-to-date or year-to-year sales right before consulting with a prospective customer.
SaaS took hold of CRM market in 2013
The cloud CRM market is impressive on its own standing, as well as when its stacked up to the entire CRM space. A Gartner report found worldwide CRM software totaled $20.4 billion in 2013, up 14 percent from the previous year. SaaS-based solutions accounted for 41 percent of this industry, due in large part to organizations of all sizes opting for easy ways to replace legacy equipment in favor of newer and more functional applications.
Joanne Correia, research vice president at Gartner, said the global CRM industry expanded last year due to greater investments in customer experiences and digital marketing. CRM software will be a key part of such initiatives in the future, especially regarding the competitiveness of businesses.
Competition among vendors is also expected to pick up steam in the coming years. Microsoft, which offers its popular Microsoft Dynamics CRM platform, captured roughly 7 percent of the market in 2013, totaling $1.4 billion, Gartner found. Between 2012 and 2013, the service provider's revenue increased 23 percent.
Get all of your cloud, CRM needs from one source
Organizations that want unprecedented data accessibility should strongly consider adopting cloud computing and CRM suites if they haven't already done so. At Beringer Associates, we provide IT services for Microsoft products such as Microsoft Dynamics CRM and Office 365, both of which are leading cloud platforms helping companies promote employee collaboration. We analyze our customers' unique tech infrastructures to find a product that supports current and future operations.
The demand for cloud solutions is not expected to slow anytime soon. If your business truly wants to compete over the long run and provide consistent service to customers at all times, migrating workloads to cloud-based environments is a necessity. If you partner with Beringer, your CRM and cloud needs will be met before, during and after launch. We offer 24/7 support to address all of your IT-related needs whenever a problem occurs.