Industry Analysis & Industry Trends
The Cloud Computing industry has incredible growth potential as it is still in its infancy. Drivers of cloud computing are all things internet and internet-enabled. The adoption of a cloud-computing model is used for achieving economies of scale, enhancing information sharing speed and developing new services. In 2011-12, the industry is expected to generate £5.3 billion in revenue. This will be a 5.0% increase on the previous year, as the economy moves out of recession. The low growth compares with expected annual growth of 2.4% over the five years through 2011-12. The next five years will better represent the expansion expected in industry services, with forecast growth of 15.8% per annum to total £11 billion in 2016-17... purchase to read more
Industry Report - Industry Investment Chapter
This industry is classified as having a medium level of capital-to-labour intensity. Like most service industries, wages are a significant cost, accounting for about 39.3% of revenue. Depreciation (or capital requirement) is relatively high for a service-oriented industry, at about 7.7% of the industry's revenue. The reason labour appears to be low relative to other service-oriented industries is because of the large amount of specialised equipment used in this industry.
In the past five years, companies in this industry have increased outsourcing of specialised tasks, which has resulted in falling employment and wages. Additionally, wages in foreign countries are beginning to increase... purchase to read more