Cloud Computing Spending To Raise To USD 13 Billion In 2014, Cloud Influences Overall IT Growth

Cloud Computing Spending

U.S. companies will be spending over USD 13 billion on Cloud Computing in 2014 compared to USD 3 billion in 2010, a report by In-Stat showed last week. Thus, cloud spending will more than quadruple in less than three years proving that Cloud Computing, SaaS, IaaS, PaaS and other cloud-based services are the fastest growing sectors in the IT industry these days.

Although spending across all sectors and size of business is projected to grow, there are some segments where growth will be staggering. The professional services and healthcare verticals will see the largest growth in spending on cloud computing services, growing over 124% between 2010 and 2014,” Greg Potter, Research Analyst at In-Stat, said in a press release.

The statement that cloud-based services are fueling the overall IT growth is backed by a recent survey conducted by Gartner. The IT sector will witness total spending worth USD 3.6 this year, a growth of 5.1 percent, year-on-year. Hardware sector, however, will face decreasing pace of growth during 2011, the survey reads. Software spending growth will reach 8.9 percent in 2011 compared to 6.1 percent in 2010, while hardware spending growth will slow down to 6.1 percent annually compared to 8.9 percent last year.

Cloud Computing Costs

Cloud computing offers significant cost reductions related to on-site infrastructure, thus a growing number of companies rely on cloud-based services to take advantage of external hardware infrastructure and benefit from services that charge only per connection to web based applications that eliminate costs related to licenses and on-site support. Those IT budget savings, however, are usually invested in more advanced IT solutions fueling the industry growth even in times of crisis.

As the global economy repairs itself in coming years, we are optimistic about continued healthy spending on IT,” Richard Gordon, research vice president of Gartner, said. His statement reflects views of many analysts who already expressed their confidence the growth in IT sector will continue to gain pace in the next decade.

Such statements have a solid ground bearing in mind that about two-thirds of medium-sized companies are adopting cloud computing technologies, according to recent study published by research firm KS&R. According to the study, more than 65 percent of all medium-sized companies in over 20 countries have already deployed cloud-based solutions in the business or plan to invest in cloud computing technologies in the foreseeable future. Moreover, 53 percent of respondents revealed their companies will invest more in IT solutions in the next 12 to 18 months.

Mid-size firms are tackling a new set of opportunities to advance their role as engines of economic growth,” Andy Monshaw, general management for midmarket at the company that commissioned the study, said in a press release.

A growing number of medium-sized businesses start to look for “consultative” relationships with their core providers instead of developing “purely transactional” relationship, the survey found. Such a change is indicative for an evolving business mentality that is heavily influenced by the rapidly changing IT environment. The years to come will bring not only growing spending on IT equipment and services but a brand new business models driven by cloud-based solutions and approaches.

By Kiril Kirilov

Sorry, comments are closed for this post.

7 Common Cloud Security Missteps

7 Common Cloud Security Missteps

Cloud Security Missteps Cloud computing remains shrouded in mystery for the average American. The most common sentiment is, “It’s not secure.” Few realize how many cloud applications they access every day: Facebook, Gmail, Uber, Evernote, Venmo, and the list goes on and on… People flock to cloud services for convenient solutions to everyday tasks. They…

Do Not Rely On Passwords To Protect Your Online Information

Do Not Rely On Passwords To Protect Your Online Information

Password Challenges  Simple passwords are no longer safe to use online. John Barco, vice president of Global Product Marketing at ForgeRock, explains why it’s time the industry embraced more advanced identity-centric solutions that improve the customer experience while also providing stronger security. Since the beginning of logins, consumers have used a simple username and password to…

Moving Your Email To The Cloud? Beware Of Unintentional Data Spoliation!

Moving Your Email To The Cloud? Beware Of Unintentional Data Spoliation!

Cloud Email Migration In today’s litigious society, preserving your company’s data is a must if you (and your legal team) want to avoid hefty fines for data spoliation. But what about when you move to the cloud? Of course, you’ve probably thought of this already. You’ll have a migration strategy in place and you’ll carefully…

Cost of the Cloud: Is It Really Worth It?

Cost of the Cloud: Is It Really Worth It?

Cost of the Cloud Cloud computing is more than just another storage tier. Imagine if you’re able to scale up 10x just to handle seasonal volumes or rely on a true disaster-recovery solution without upfront capital. Although the pay-as-you-go pricing model of cloud computing makes it a noticeable expense, it’s the only solution for many…

3 Keys To Keeping Your Online Data Accessible

3 Keys To Keeping Your Online Data Accessible

Online Data Data storage is often a real headache for businesses. Additionally, the shift to the cloud in response to storage challenges has caused security teams to struggle to reorient, leaving 49 percent of organizations doubting their experts’ ability to adapt. Even so, decision makers should not put off moving from old legacy systems to…

Three Challenges of Network Deployment in Hyperconverged Infrastructure for Private Cloud

Three Challenges of Network Deployment in Hyperconverged Infrastructure for Private Cloud

Hyperconverged Infrastructure In this article, we’ll explore three challenges that are associated with network deployment in a hyperconverged private cloud environment, and then we’ll consider several methods to overcome those challenges. The Main Challenge: Bring Your Own (Physical) Network Some of the main challenges of deploying a hyperconverged infrastructure software solution in a data center are the diverse physical…

Staying on Top of Your Infrastructure-as-a-Service Security Responsibilities

Staying on Top of Your Infrastructure-as-a-Service Security Responsibilities

Infrastructure-as-a-Service Security It’s no secret many organizations rely on popular cloud providers like Amazon and Microsoft for access to computing infrastructure. The many perks of cloud services, such as the ability to quickly scale resources without the upfront cost of buying physical servers, have helped build a multibillion-dollar cloud industry that continues to grow each…

Is Machine Learning Making Your Data Scientists Obsolete?

Is Machine Learning Making Your Data Scientists Obsolete?

Machine Learning and Data Scientists In a recent study, almost all the businesses surveyed stated that big data analytics were fundamental to their business strategies. Although the field of computer and information research scientists is growing faster than any other occupation, the increasing applicability of data science across business sectors is leading to an exponential…

The Fully Aware, Hybrid-Cloud Approach

The Fully Aware, Hybrid-Cloud Approach

Hybrid-Cloud Approach For over 20 years, organizations have been attempting to secure their networks and protect their data. However, have any of their efforts really improved security? Today we hear journalists and industry experts talk about the erosion of the perimeter. Some say it’s squishy, others say it’s spongy, and yet another claims it crunchy.…