In 2016 the Polish cloud computing market will grow by over 30%

More information on this topic is presented in the PMR report:

The Polish market of IT solutions supplied in the cloud is characterised by its very high pace of expansion. In the public cloud segment the growth rate has been over 30% year by year. In 2016 the situation will be similar. The still low share the cloud contributes to the total IT expenditure remains a problem.

 

Present situation

 

According to the latest report "Cloud computing market in Poland 2016. Market analysis and development forecasts for 2016-2021", published by the research company PMR, in 2015 the Polish public cloud market expanded by almost a third again. The forecasts for this year indicate that the growth rate will remain high.

 

 

In the sector of large enterprises in Poland the significance of the cloud has been growing steadily, although the preferences of the biggest users of IT services in Poland have been invariably marked by their desire to have their own physical infrastructure. A survey of large enterprises carried out by PMR in Poland this year demonstrates that at present 25% companies employing 250 and more staff take advantage of cloud computing solutions. This represents an 8 p.p. increase in relation to the previous survey. The respondents pointed to the scale of using services in the cloud – when asked about the strategic migration of their resources to the cloud most of them emphasised that they were not taking that step and not even planning to.

 

 

Our last year's forecasts concerning cloud computing services in Poland proved accurate. The market has been developing very rapidly, especially against the background of the entire ICT sector in the country. Nevertheless, the incomparably smaller scale of this process should be borne in mind. The share of the cloud in the total IT market value in Poland is somewhat over 1% and is more than twice lower than global figures.

 

Forecast – analyst's comment

 

The key IT suppliers offering cloud solutions that we have interviewed concerning the situation on the market underlined that the market growth should be at least twice as high if the cloud is to play a more substantial role in the revenue structure in the coming years. Given the situation on the markets of Western Europe and assuming that the level of Polish enterprises' saturation with cloud solutions will be convergent with the figures for those markets, such a scenario is, in theory, definitely possible. In practice, however, this is not the most likely scenario at the moment. On the other hand, at present there are no reasons to anticipate any clear decline in the growth rate of the cloud computing market in Poland either. It will be declining somewhat but even over the next five years year-on-year increases will remain over than 20%. This means that the cloud is one of the drivers of the Polish IT market and definitely represents an area in which suppliers should seek growth opportunities.

In our opinion, the public cloud will be of greater significance for the Polish market in the coming years. This is a change in our appraisal as compared to the previous report in which we expected a more stable structure in the period covered by our projections. Despite the differences in the manner of provision and in the type of end users, both those models still are two varieties of the same technology, continuously attracting new clients. The public cloud first of all enjoys an advantage resulting from the number of its potential users, also because of the popularisation of such solutions among small and medium-sized enterprises. For the private cloud, in turn, an analogous factor is the value of contracts which usually are of a completely different nature and scale as compared to public cloud solutions. We believe that the scale of the process and higher sales volume in the SME segment will ensure its stronger position, while large companies, even if they adopt cloud solutions, will do so only partly, fitting them into their existing infrastructure and actually making use of them on a hybrid basis. In our opinion in this situation it is of paramount importance for cloud suppliers to target their services at SMEs and even microenterprises. The prospects of selling even the simplest solutions designed for that segment are now clearly better than in the segment of the biggest enterprises which are more focused on developing their own internal resources.

 

Methodological comments

 

In the context of surveys and analyses methodological problems should be expounded in relation to cloud services – many solutions and suppliers misuse that term. We included in the market value the revenue contributed by services supplied through commercial data centres. Those are comprehensive services that may encompass a broad range of solutions – from IaaS (computing power, back-up services) to PaaS and SaaS (where a data centre or a service provider acts as a broker for the company producing software). This is all accompanied by an adequate bundle of telecommunications services (connection, data transmission).

The market value as calculated by us excludes, in turn, private cloud services developed by companies on their own as part of dedicated implementation projects or by a single organisation within a group for use by other companies. The value of the cloud computing market does not include the design, construction, implementation and the activation itself of those services. For the SaaS segment only business and office software was taken into account. Dedicated communication systems and the so-called small hosting services (e.g. website hosting) are not included in the presented market value.

 


More information on this topic is presented in the PMR report:
Cloud computing market in Poland 2016. Market analysis and development forecasts for 2016-2021