Worldwide subscriptions to cloud storage services have grown to an all-time high, reaching 500 million subscribers this year, according to Cloud Times. This represents a significant increase from the number of subscribers in 2011, which stood at 300 million.
Additionally, experts have forecast the market will continue to grow, reaching 625 million in 2013. With an estimated annual growth rate of 25 percent through 2017, the industry could be worth a total of more than $1.3 billion by then, according to a report by consultancy firm IHS.
“In an environment where mobile devices…handle broadband data on a near-ceaseless basis, businesses are realizing the importance of cloud services,” said Jagdish Rebello, director for consumer and communications at IHS. “However, providing cloud services is not profitable as a standalone service, challenging companies to identify value-added services that could generate revenue.”
The continuous growth and vast potential of the cloud storage market has led to numerous companies providing cloud services. Businesses have begun to realize the tremendous source of recurring revenue that can come with the provision of subscription-based cloud services. According to Essential Elements Times, corporate behemoths including Amazon, Google, Microsoft and Apple have entered the fray to compete with traditional cloud storage providers such as Dropbox, SugarSync, Synplicity and Mozy.
With the inundation of competitors in the industry, cloud storage providers will have to innovate to remain financially viable, according to Cloud Times. Along with providing value-added services, these companies should consider implementing a subscription management platform to ensure maximum efficiency in their offerings.