Cloud computing spending predicted to rise
Cloud computing spending predicted to rise
Spending on cloud computing services by enterprises is expected to show substantial growth over the course of the year.
According to recent research from In-Stat, enterprise spending on the public cloud is due to grow by 139 per cent between 2010 and 2011. The growth is just part of a number of positive trends recorded in IT expenditure.
Indeed, enterprise business spending on cloud computing, wireless, wireline voice, IP communications and wireline data is due to grow collectively by “a healthy six per cent”.
Greg Potter, an analyst with In-Stat, commented: “There will be positive growth across all 20 verticals with education and healthcare & social services leading the surge with growth of ten per cent and nine per cent respectively. These increases in spending are across all product groups except wireline voice, which will decline by about half a per cent.”
The news follows earlier research from In-Stat, which found that as a particular sector of cloud computing, Infrastructure as a Service (IaaS) is set to grow by roughly $4 billion by 2015. Software as a Service (SaaS), meanwhile, is set to grow by 142 per cent during the same time period, while overall cloud computing looks poised to grow by 153 per cent.
Smaller businesses look likely to drive this growth, with $2.5 billion worth of growth recorded last year and $6.6 billion predicted by 2015. Indeed, small businesses account for over half of the market for SaaS and IaaS.
Mr Potter added: “Many SaaS applications have been around for a long time, but only now since the advent of entire platforms for applications, such as Google Apps and Force.com, are these applications gaining the necessary visibility among businesses to gain traction in the software market. IaaS is also gaining traction, especially in the small business market.”
Businesses looking to move services into the cloud should evaluate the performance of their existing network and consider setting up a leased line or MPLS network.
