Where Is Cloud Computing Going? Up, Up And Away!

Where Is Cloud Computing Going? Up, Up And Away!

“An invasion of armies can be resisted, but not an idea whose time has come.”
– Victor Hugo (1802-1885), celebrated French author.

Going by recent reports, cloud computing is indeed an idea “whose time has come.” First, the figures.

According to a report published by market research firm In-Stat, by 2014, businesses in the United States will spend more than $13 billion on cloud computing and managed hosting services. This is in comparison to a trifling $3 billion at present. SaaS (Software as a Service) spending is expected to grow 112 percent annually from 2011 to 2014, while spending on PaaS (Platform as a Service) will increase 113 percent annually to approximately $460 million in 2014. IaaS (infrastructure as a Service) spending will approach $4 billion in the same time frame.



In-Stat is a Arizona-based market research firm that uses “technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems.” The company also has offices in Massachusetts and China. The report is part of the firm’s Cloud Computing and Managed Services Spending Forecasts service where five-year spending forecasts are compiled into data sets that end-users can obtain in customised form, allowing them to track the specific topics, trends and issues that affect their business operations.

Although the above figures may seem overly optimistic, they do tie in with numbers released in a Market Monitor report published by the 451 Group late last year. The report predicted that  total cloud computing revenues would touch $16.7 billion by 2015.

In a previous article (How Small Firms Can Benefit Big From Cloud Computing (And Why They Are Not), I had looked at the immense benefits SMEs (Small and Medium Enterprises) can obtain from cloud computing, and also the issues holding back its widespread adoption. According to the aforementioned In-Stat report, these issues are likely to be solved by 2014, considering that it predicts that small and home offices comprised of one to four employees will lead the adoption of cloud computing over the next three years.

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

The report, titled US Business Spending by Size of Business and Vertical, 2009–2014: Cloud Computing and Managed Hosting Services, provides forecasts of US business cloud computing and managed hosting spending for the 2009–2014 period with detailed segmentation by product category, size of business, and vertical market.

Forecasts are broken into the following size-of-business segments and sub-segments:

  • SOHO business (1 to 4 employees)
  • Small business (5 to 9 employees, 10 to 19 employees, and 20 to 99 employees)
  • Mid-Sized business (100 to 499 employees and 500 to 999 employees)
  • Enterprise (1,000 to 4,999 employees, 5,000 to 9,999 employees, and 10,000 or more employees)

Forecasts are also broken down further into the following vertical markets:

  • SOHO (Small Office Home Office) business (1 to 4 employees)
  • Small business (5 to 9 employees, 10 to 19 employees, and 20 to 99 employees)
  • Mid-Sized business (100 to 499 employees and 500 to 999 employees)
  • Enterprise (1,000 to 4,999 employees, 5,000 to 9,999 employees, and 10,000 or more employees)
  • Forecasts are also broken down further into the following vertical markets:
  • Administrative and support services, waste management
  • Arts and entertainment
  • Construction
  • Education
  • Finance and insurance
  • Forestry, fishing, and agricultural services
  • Government
  • Healthcare and social services
  • Hospitality and food
  • Information and communication
  • Management of companies and enterprises
  • Manufacturing
  • Mining
  • Other services
  • Professional services
  • Real estate
  • Retail trade
  • Transportation utilities
  • Wholesale trade

It seems that there is only one way that cloud computing can go now – up, up and away!

By Sourya Biswas

Sorry, comments are closed for this post.

Is Fear Holding Back a Next Generation of Cyber Security Approaches?

Is Fear Holding Back a Next Generation of Cyber Security Approaches?

Next Generation of Cyber Security As I walked through RSA last week, I was struck by the usual fear laden messages “You’re not safe and never will be but I (vendor) have a silver bullet that will protect you.” And, I wondered if this fear-based approach is deterring a badly needed next generation of cyber…

Are You SURE You Are Ready For The Cloud?: Security of Business

Are You SURE You Are Ready For The Cloud?: Security of Business

Cloud Business Security Last month I went into the financial side of moving to the cloud. This month I am going to focus on the other main reason I have seen customers migrate to the cloud: Security of business. When I say security, I do not mean username and passwords, but a stability of the environment…

Cloud-Based Services vs. On-Premises: It’s About More Than Just Dollars

Cloud-Based Services vs. On-Premises: It’s About More Than Just Dollars

Cloud-Based Services vs. On-Premises The surface costs might give you pause, but the cost of diminishing your differentiators is far greater. Will a shift to the cloud save you money? Potential savings are historically the main business driver cited when companies move to the cloud, but it shouldn’t be viewed as a cost-saving exercise. There…

Knots And Cloud Service Providers

Knots And Cloud Service Providers

How Do These Two Compare? In Boy Scouts, I learned how to tie knots. The quickest knot you can tie is the slipknot. It’s very effective for connecting one thing to another via the rope you have. It was used in setting up tents, mooring boats to docks temporarily and lifting your food up into…

Are You Sure You’re Ready For The Cloud?: Connectivity

Are You Sure You’re Ready For The Cloud?: Connectivity

Cloud Connectivity Many times when we think of “cloud” we think of the elastic compute and storage, but we forget one very important thing, connectivity. Even though connectivity is no part of the cloud itself, it does have a direct bearing on how we access it, use it, and play around with it. If our…

OpenStack Interoperability – Dawn Of A New Era?

OpenStack Interoperability – Dawn Of A New Era?

The Interoperability Challenge! OpenStack has always had interoperability as one of its unique selling points. Simply put – you can use OpenStack on-premise and what you develop will also work with other OpenStack environments. Open APIs and open source is the common denominator. However until now, it has been an elusive feature or really dream…

Methodically Plan Your Cloud Design First

Methodically Plan Your Cloud Design First

Are You Sure You Are Ready For The Cloud: Design For the last few months, we have been discussing getting ready to go to the cloud. We have covered topics such as Financial and Business Security reasons. We have even discussed the type of knowledge you should obtain. This month, we are going to take…

CloudTweaks is recognized as one of the leading influencers in cloud computing, infosec, big data and the internet of things (IoT) information. Our goal is to continue to build our growing information portal by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Advertising