Cloud Infrastructure Spending to Reach $52bn in 2019
In a statement by IT analyst company IDC, the spending on cloud infrastructure in the public space by firms is expected to reach nearly $52bn dollars by the year 2019.
IDC reports that more than 60% of the expenditure will be in the public cloud infrastructure, and the remainder of the spending will be in the private cloud.
While cloud computing market has been estimated to grow at exponential rates by various experts and IT analysts, the latest findings from IDC provide concrete details pertaining to the robust growth of cloud computing services.
Details of findings
The estimate of the growth follows IDC’s research statistics of the growth of spending on cloud computing in 2014. Its Worldwide Quarterly Cloud IT Infrastructure Tracker accounts for a more than 14% growth in cloud computing spending in the final quarter of 2014. This is supplemented by the finding that the cloud computing spending constitutes nearly 30% of all IT infrastructure expenditure.
In addition to IDC’s findings, other research has also unveiled the rapid growth of the cloud computing market. Research by Bartels and Rymer et.al suggests that the public cloud computing market will grow by a significant amount – to more than $191bn by 2020.
The figures and research findings help to understand the next major shift in the business landscape in the coming years as companies realize the potential strategic advantages that cloud computing has to offer. This shift can significantly alter the way both small and medium enterprises and larger multinational corporations compete in the global marketplace.
Factors driving cloud computing growth
The colossal growth of the cloud computing market is underpinned by a range of factors pushing its growth. These factors are the following:
“A key driver of this acceleration is organizations’ development and use of new Internet of Things (IoT) services that require levels of agility and scale that only cloud services can deliver.”
- Richard Villars, Vice President of Datacenter & Cloud, IDC
1) Firms realize benefits of cloud computing
One of the most important factors contributing to the growth of cloud computing expenditure is the potential benefits of cloud services that companies can benefit from. Cloud computing provides great data sharing and accessibility advantages that can arm companies, especially SMEs, with a strong competitive edge. Firms realize just how beneficial it is for customers to move data from one device to another with great ease and convenience. It also provides a great way of storing vast amounts of data.
2) Scale opportunities
The centralization of cloud data centers – an initiative taken by prominent corporations such as Amazon and others – is a way for preparing for the future. This is because large amounts of data provide astronomical scale advantages for both SMEs and large corporations alike. The scale advantages accruing from greater cloud investments means that companies can reduce costs at remarkable rates that will allow them the catalyst for greater competitive leverage.
3) Substantial cost savings
Crucial business costs, associated with the traditional approach of purchasing and maintaining large local data servers, are now being eliminated, and for businesses, this is a major step forward. Cost savings at these proportions means that even SMEs have the opportunity to now compete with larger corporations as all data now goes online.
Issues of concern
The growth in IT cloud spending in the future will lead the way to the establishment of various cloud computing service providers. However, any business considering whether to invest more into cloud computing, needs to make the right choice for its investment to be fruitful.
Cloud computing is still marked by a vacuum in security protocols and risks which makes cyber theft and attacks a lot more plausible. Firms thus need to make careful considerations regarding availability of cloud security services. This will only make the big step to invest billions into this market a worthy cause that offers great financial as well as non-financial returns.
There is an explosive growth in cloud spending as companies have begun to realize the potential benefits of cloud services as well as the suitability to the growing trends of adopting scalable technologies.