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SMEs embrace the cloud while consumers flock to mobile commerce: Report

Thursday, 29 September 2011 | By Oliver Milman

The shift by SMEs and consumers to new technology has been underlined by separate figures that show the cloud computing market will generate revenues of $12 billion in Asia-Pacific by 2016, while mobile payments in Australia are set to quadruple this year.


A report from Ovum shows that the public cloud services market is expected to increase by a factor of five during the next five years in the Asia-Pacific region.

The increase will see the region increase its share of the global market from 16% now to 18.8%.


Europe, the Middle East and Africa will remain in second position behind North America, with a share increase of 27% in 2011 to 29% in 2016.


In terms of the cloud services used across the world SaaS is expected to decline from an 87% market share in 2011 to 62% in 2016.


IaaS and PaaS are set to be the main beneficiaries, growing from 9% and 5% respectively to 23% and 16% during the next five years.


Ovum says the foray by Google and Amazon into cloud-based services has enabled many small businesses to take advantage of the web-based technology.


Saurabh Sharma, senior analyst for market intelligence at Ovum, says: “Asia-Pacific public cloud services market will grow at the fastest rate among all the regions.


“Growth will be driven by the rapid uptake in SME segment as these enterprises continue to realise the strategic gains associated with the shift to cloud,” Sharma says.


“Increasingly favourable economic conditions and the fast-improving infrastructure environment will serve as a major enabler for uptake of cloud services in this region.


“In AP, Australia, New Zealand, China and India will grow at faster rates while Japan remains the top contributor to regional cloud services market.”


While small businesses increasingly embrace cloud-based services separate figures indicate that Australian consumers are eagerly taking up the opportunity to buy goods and services via their mobile phones.


According to new research by PayPal the mobile commerce market is set to soar by 430% in value this year, up from $42 billion last year.


The online payment provider says group buying sites and ticketing providers are leading the way when it comes to mobile-based purchases.


Frerk-Malte Feller, managing director of PayPal Australia, says: “Mobile commerce has undoubtedly hit the mainstream and in the past six months alone we have seen 2000 of our merchant partners accept their first mobile payment.


“Mobile provides a win-win opportunity – consumers have the tools to make smarter, more convenient purchasing decisions while retailers have the opportunity to take advantage of phone features to deeply engage customers and drive incremental sales.”