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Cloud Bubble Trouble for ICT Providers

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Report Summary:

Information and Communications Technology (ICT) providers are chasing clouds as if there is a pot of gold at the end of the rainbow that immediately delivers huge revenue for providers and cost savings for customers. The reality is that clouds currently contribute less than 5 percent of revenue for many global ICT players and it will be 5-10 years before significant cloud-related revenue and savings are realized. Now is the time for ICT providers to choose business models and partners that maximize cloud-related revenue growth while minimizing disruptions to existing business value chains. Otherwise, billions of dollars invested in cloud operations that fail to generate significant revenue quickly enough to meet expectations will lead to a cloud bubble bursting.

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