Savvis Nearly Doubles Cloud Revenues

savvis cloud revenues

Company officials speaking during the company’s Q4 earnings call said Savvis generated $7.4 million in cloud revenue last year, a 93 percent increase over 2008. Cloud revenue in Q4 was $2.5 million, a 25 percent boost quarter-over-quarter and a 105 percent increase year-over-year.

Granted, Savvis’ cloud business represents a tiny portion — less than 1 percent — of the company’s overall sales. Savvis reported total 2009 revenue of $874.4 million. But Savvis executives see the addressable cloud market growing rapidly, as companies looking to reduce IT costs and boost flexibility fuel demand. The company cited Gartner Inc. numbers that peg the addressable market $1.2 billion in 2009, expanding to $4.9 billion in 2012.

“We are seeing enterprises accelerate their adoption of cloud-based solutions,” said
Bill Fathers, Savvis senior vice president and global head of sales and marketing.

One-third of Savvis’ 2009 cloud business came from new customers, with the consumer brands, healthcare, software, human resources, and financial services segments represented. Among existing customers, the media industry showed the most interest in moving to the cloud, according to Fathers.

Media companies, in general, have become prime MSP customers. The spiky, unpredictable nature of media Web sites lends itself to the dynamic resource allocation of cloud computing.

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