Cloud $10b market by FY13, Merril Lynch Report Jan, 10th 2011

Merril Lynch has released a very detailed report on January 10th, 2011 on Cloud Computing, "Cloud" next big opportunity for IT service vendors, here is a summary of the most important findings:

Cloud: Key growth opportunity, potential game changer

• over the next 5 years, Cloud presents a great opportunity for IT services vendors.
• Shrinkage in certain revenue streams will be more than offset by new ones.
• Cloud is a game changer where winners will grow IP-based services.

Significant revenue opportunity near term
Cloud consulting, migration and management is forecast to be a new US$10bn market by FY13,
growing at a 5yr CAGR of over 40%. It could form 6-10% of revenue in five years from less than 2% today and could account for 15-30% of incremental revenue.

The IT services competitive landscape will be transformed. Increased competition could result in consolidation process.