Enterprise Spending On Cloud To Triple By 2017

by CXOtoday News Desk    Feb 17, 2014

cloud computing

Corporate spending on cloud computing is expected to triple from 2011 to 2017, according to IHS Technology (IHS) report, which predicts that enterprise spending on cloud computing will amount to nearly $235.1 billion, triple the $78.2 billion spent in 2011.

This year, global business spending for infrastructure and services related to the cloud will reach an estimated $174.2 billion, up 20% from the amount spent in 2013, says the study.

“Cloud services, applications, security and data analytics will account for an ever-growing portion of total information technology spending by enterprises, valued at about $2 trillion at present,” IHS analyst Jagdish Rebello says in a statement. He adds that the robust growth will come as an increasing number of large and small enterprises move more of their applications to the cloud, while also looking at data analytics to drive new insights into consumer behavior.

The HIS report notes that among the large tech companies battling for market share in the cloud are Amazon.com, Google and Microsoft. Other companies like Dropbox and Carbonite that  specialize in cloud-based data storage services and those that sell online software application services such as Salesforce.com and Workday will dominate the cloud landscape.

Other research reports in the recent past have showed an optimism in cloud adoption and sales. Gartner for example has forecast a $3.8 trillion growth in 2014, a slight increase from last year’s  spending of $3.7 trillion, but the market will shoot up thereafter till 2017 owing to increasing spending on devices (ultramobiles, mobile phones and tablets) as well as remote managed services.

The cloud is no longer an option for businesses, but it is a must , says Founder of Tribridge and cloud specialist Tony DiBenedetto. Most businesses already work in the cloud, or store data there, or deploy applications from the cloud, he says, and as a result the cloud will be the major driver of IT spending and decision making for the foreseeable future.

Read: 5 unique benefits of cloud computing

Red Hat CEO Jim Whitehurst mentioned in his blog that 2014 is going to be a defining year for for Cloud industry as cloud architectures will go from experimentation to deployment, where big data goes from promise to production, and when we get our first glimpse at how these innovations could potentially change our world.

“For the last couple of years, we’ve been talking about the cloud, but realistically, it’s only been about customers starting to toy around with it. You’re finally seeing these things go into production,” says Whitehurst with CIOs reaping the ‘actual’ benefits of cloud computing in the next couple of years.

Read: India To Spend $3.9 Billion On Cloud Services By 2017