Cloud Computing services 'will grow faster than trad IT'

Worldwide revenue from public IT Cloud Computing services exceeded $16bn in 2009, and is forecast to reach $55.5bn in 2014, representing a compound annual growth rate (CAGR) of 27.4 per cent.

The study ‘Worldwide and Regional Public IT Cloud Services 2010-2014 Forecast’ from market-watcher IDC forecasts revenue growth segmented by five functional categories within eight regions/countries. The forecast data lead to key conclusions regarding Cloud offerings' revenue, and Cloud growth impacts on the IT industry, customer adoption shifts among the five IT cloud services categories, and shifting adoption patterns among the eight regions/countries.

The report’s key findings include:

  • While spending on public IT cloud offerings in 2014 will reach 12 per cent of the size of traditional IT product spending, it will be over 25 per cent of the net-new growth in traditional IT products. Growth-oriented IT vendors should invest in proportion to this net-new growth impact, rather than cloud services’ revenue impact.
  • Among the five primary Cloud services segments forecast in this document, Cloud applications dominated in 2009, but IDC forecasts that by 2014 a less-skewed distribution of revenue will occur, with applications accounting for a little over one-third of market revenue and increased revenue shares in infrastructure and platform-as-a-service (PaaS) segments.
  • Adoption growth will shift away from US dominance. Revenue from public IT Cloud services in 2009 was concentrated in the US – 70.2 per cent – but by 2014 the US share will drop to 51.4 per cent, with other regions/countries – notably Western Europe and Asia/Pacific (excluding Japan) – growing their share with rapidity.

“The Cloud model will propel IT market growth and expansion for the next 20 years, and will help the industry to more rapidly develop and distribute a new generation of ‘killer apps’, and to more successfully penetrate small and medium-sized businesses,” avers IDC senior vice president and chief analyst Frank Gens. “As this happens, industry leadership ranks will certainly change.”

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