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Cloud Professional Services Revenue will Reach $59B

Hybrid IT environments will fuel the growing demand for experienced digital transformation talent that's currently in short supply. In particular, CIOs and IT managers have filled the void by engaging a variety of consulting firms to help them meet their near-term cloud computing specialist requirements.

That being said, the cloud professional services market is now forecast to grow at a low-double-digit CAGR through 2019, reaching $59 billion in revenue, according to the latest Technology Business Research (TBR) forecast.

Accelerated demand for managed services will continue to increase opportunities for cloud professional services vendors, and the leaders will continue capitalizing on longer-term, ongoing consulting opportunities, relying less on software applications development and maintenance.

Enterprise customers seek to build best-fit, multi-cloud environments, but increasing cloud security concerns could prevent these organizations from adopting and implementing cloud solutions in their IT environments without skilled third-party assistance.

Demand for Digital Transformation Talent

"There is an interesting dynamic in the cloud professional services market. Leading vendors in the space will further their dominance with additional market share over the next five years," said Cassandra Mooshian, cloud analyst at TBR.

Typically, the inverse is true, particularly in markets such as cloud computing where competition is intense. However, there are corners of this market -- such as the brokerage and integration space -- which is disrupting other parts of the overall cloud professional services market.

According to the TBR assessment, IBM, HP and Accenture remain the majority leaders in the market as a result of their business model transformations and go-to-market shifts. They're already introducing their large customer bases to the emerging cloud computing market.

Smaller, regional vendors such as Capgemini and T-Systems -- and lower-cost vendors based in India, such as Wipro and Cognizant -- continue to address the custom cloud consulting needs for highly regulated local markets and the more cost-conscious customers.

In summary, the resulting report from the TBR study offers a forward-looking view of upcoming changes in the cloud professional services market and illuminates trends and opportunities for vendors within the digital business transformation space -- to better target a specific category or niche and thereby grow their revenue.

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