Software as a Service: $13 Billion Revenue in 2014

Cloud computing and managed hosting spending by U.S. businesses will surpass $13 billion in 2014, up from less than $3 billion.

“Although spending across all sectors and size of business is projected to grow, there are some segments where growth will be staggering,” says Greg Potter, Research Analyst. “The professional services and healthcare verticals will see the largest growth in spending on cloud computing services, growing over 124 percent between 2010 and 2014.

In-Stat - Press Release

Accedian Networks Release 5.1 Now Available

Accedian Networks Release 5.1 of its High Performance Service Assurance platform for the Company’s MetroNID and MetroNODE 10GE demarcation units.

Accedian Networks is the number one provider of High Performance Service Assurance solutions for Carrier Ethernet mobile backhaul networks.  Release 5.1 contains several key features that enhance the synchronization and clock distribution capabilities of the NIDs, including support for new GPS and Synchronous Ethernet options in the MetroNID demarcation devices.

MetroNID GPS is designed to assure real-time services with an embedded GPS receiver that provides highly accurate clock synchronization for 1-way measurements of delay and delay variation of Ethernet links.

E-Book Content Revenue $1.4 Billion in 2011

By 2013, U.S. consumers will purchase 381 million e-books, roughly four times the amount they purchased in 2010, according to Yankee Group forecasts.

E-books will bring in substantial revenues. Over the next three years alone, e-book sales will grow at a compound annual growth rate of 72 percent to reach nearly U.S.$2.7 billion by 2013. In 2011, e-book content sales will be about $1.4 billion, Yankee Group estimates.

Average selling prices of e-books will plummet. In 2010, consumers saw e-book prices fall 50 cents. This trend will continue. By 2013, the average e-book retail price will fall to $7, down from an average of more than $9 in 2009.

Yankee Group Research Report

Global Cloud Computing Revenue Forecast

The Yankee Group global forecast for cloud computing revenue includes some key definitions.

Yankee Group defines midsize to large enterprises as 249 or more employees. The forecast also includes SMBs, which the firm defines as organizations with 2 to 250 employees. The forecast excludes consumer cloud services but does allow that small businesses will often adopt consumer cloud services for business use. Yankee Group excludes sole proprietors from infrastructure as a service and platform as a service because analysts do not believe the typical small business has a need for those services.

The forecast likely understates demand in the small business segment to the extent that many small software firms will have high incentives to buy platform and infrastructure services "as a service."

To forecast revenue, the analysts start with the concept of average revenue per employee per month. Yankee Group calculates ARPE for SaaS, IaaS and PaaS as $4, $2 and $1, respectively.

For example, a typical enterprise will spend $4 per employee per month on SaaS. This is equivalent to $48 per year per employee, or what a small business or sole proprietor might pay for an online backup service such as Mozy or Carbonite and simple collaboration software like Evernote or Dropbox.

Yankee Group Research Report

Rackspace Bullish on Cloud Computing, Of Course

Cloud computing implies data centers and good connectivity. That's good for Rackspace, and for capacity suppliers alike.

Starbucks Rolls Out Mobile Payments at 7500 Locations

Starbucks is launching its mobile payment system nationwide, to 6,800 of owned stores, plus more than 1,000 outlets inside Target stores. The Starbucks mobile payment system will work initially on iPhones, BlackBerries and iPod "Touch" devices, with an Android version in the works.

To use the system, Starbucks cardholders load an application onto their iPhone or BlackBerry smartphones. The application displays a barcode that's scanned at the register to pay for drinks. Users can also manage Starbucks accounts and find nearby stores with the application.

One in five Starbucks transactions is now made with the store cards, and mobile payments "will extend the way our customers experience and use their Starbucks Card," says Brady Brewer, vice president of card and brand loyalty. 

Customers apparently like using Starbucks Cards. They loaded more than $1.5 billion onto the cards last year, up 21 percent over 2009.

Starbucks said more than a third of its U.S. customers use the devices, and nearly three fourths of the smartphone-toting Starbucks customers have either an iPhone or a BlackBerry.

http://www.starbucks.com/coffeehouse/mobile-apps/starbucks-card-mobile

Emerging Market Mobile Growth Rate Slows

Though mobility has driven mobile growth globally over the last several years, attention in emerging markets is shifting to broadband.

Emerging market mobile subscriber growth will slow, with single-digit or low double-digit growth becoming the norm, according to analysts at Ovum.

Datamonitor | Media Center | Ovum predicts how telecoms will fare in 2011