The impact of cloud computing on technology services is a area TSIA continues to study with great interest.
I’ve just completed a review of the financial performance of companies in The TSIA Cloud 20. This is an index of twenty of the largest cloud computing players. In March, when we took the last snapshot of The Cloud 20, I made three observations:
- •Cloud computing revenues are less than 5% of total technology solution revenues.
- •Currently, SaaS models are at least 50% less profitable than the traditional enterprise software business model.
- •YET: “Cloud 20” revenues grew 3% last year while “Service 50” revenues shrank 8%.
After reviewing the current data, there are three new ratios I have observed:
To find out more about these three ratios, join me for the Cloud 20 webcast this Thursday: