this off premise model may change it because mostly now,
what's offered is standardised services.
True, so essentially many of these off-premises services
are offered in a standardised way.
That's what, so that in some ways does change the relationship.
>> So someone installs a computer in my garage,
and you and Febby can rent it using the Internet.
>> That's right, yeah.
>> Back to the proposition, that is,
cloud will mean the end of IT outsourcing, >> George,
you're going to take us through an argument for this proposition, aren't you?
>> Yeah, Cloud computing is a technological development,
the type of technological development that comes once in a generation.
It offers many benefits to enterprises,
in terms of lower cost of the IT infrastructure,
it offers them agility in terms of the applications they develop and deploy.
We've looked at aspects such as the take-up of Cloud, and
if you look at the year 2014 here, 30% of enterprises had
adopted Cloud computing as part of their IT infrastructure.
What we mean by that is that 30% of enterprises,
their primary platform was based on Cloud 50% or
more of their IT infrastructure was utilising Cloud based service delivery.
Now if you project that out further to 2018, the take up will increase to 60%.
So 60% of enterprises by 2018 are expected to be using cloud, so
the take up is quite dramatic and significant.
We're talking about take up rates of about 40% or more in the current year.
And also now, if you look at Cloud revenues, the Cloud service revenues,
they're also growing dramatically in line with the take up of Cloud services,
we're looking at somewhere of around $200 billion of cloud services by 2018
>> 200 billion?
>> Yeah, and that is quite quite significant.
Yeah. So if you look at public Cloud providers,
who are the major cloud providers here, this table here shows-
>> This table?
>> That's right.
We've got Amazon Web Services, Microsoft Azure, Salesforce,
Salesforce Provider TRM software.
Then there's Adobe as well.
These are- >> And these are public Cloud services?
>> Major public Cloud providers.
That's right.
What's interesting about this table is the rate of growth has been very significant.
Even though the revenues here we're talking about coming off a small base,
the rate of growth is 80% in some cases here.
If you look at Amazon Web Services, they just been growing phenomenally.
Now if you look at this other table here, it shows the traditional IT outsourcers.
You've got companies like IBM, they're experiencing a dramatic
declines in growth because again the traditional IT outsourcers, have had
large revenues, so a decline of 8% is quite significant for a company like IBM.
If you look at Accenture, they've managed to stay there, stay on course, they
haven't been experiencing a decline primarily because they're not dependent so
much on selling servers, providing the hardware, the basic hardware and software.
They're really more focused on integration services, consulting.
However, other companies like HP and Fujitsu,
their business model depended a lot on selling service,
so a lot of that hardware, and a lot of the software that comes with that,
and building that for specific clients.
So yeah, they are experiencing quite significant declines here,
as this table shows.
So, the relationship between the client and
the Cloud provider can vary, depending on the service,