Since Backupify is headquartered in Cambridge, MA., it’s no surprise that the vast majority of our customer base is North American. Our current customer base breaks down as roughly 70 percent in North America with the remaining 30 percent divided primarily in Europe (about 7 percent of that is coming from the UK).
We’re excited to see growth in the cloud-to-cloud backup space as more companies adopt SaaS applications (after all, you need to back up all your data in these SaaS applications). This got me thinking about SaaS adoption in general. What regions/countries/areas of the globe are adopting or planning to adopt SaaS applications?
According to a recent report by Siemer & Associates, a whopping 60 percent of the Software as a Service market is in the US. Emerging markets in both Asia and Latin America are lagging behind due to concerns around security, third party control and lack of bandwidth. (Image Source: Wall Street Research)
The study went on to find that behind North America, Europe was second in terms of SaaS global market revenue (for 2011 - 2012). Within Europe, Western European countries make up the bigger chunk of SaaS adopters. The study also found that the Asia/Pacific region is pretty fragmented when it comes to SaaS adoption. The more mature markets in APAC include Japan, Australia, New Zealand, Hong Kong, Singapore, South Korea, and Taiwan.
Speaking of SaaS, a study commissioned by CA Technologies which looked at cloud adoption across the US and Europe found that SaaS is the most widely implemented type of cloud service; 94 percent of the US and 68 percent of the European companies in the survey implemented some type of SaaS application. IaaS and PaaS adoption was about 10 to 15 percentage points behind SaaS. The study confirmed that the US is ahead of Europe in terms of cloud adoption - 55 percent of the companies in the US have been in the cloud for three or more years, compared to 20 percent of the European survey respondents.
While different regions of the world may not be on the same level as the US when it comes to adopting cloud technologies, these regions are definitely catching up. There is still work to be done on internal infrastructures which will ease the transition to the cloud.
The industry will continue to see impressive growth rates and according to Gartner, worldwide revenue for SaaS is projected to reach $22.1 billion by 2015.
Interested in learning more about the growth of the cloud? Check out The Giant Cloud: 8 Stats on the Growth of Cloud Computing