Infrastructure // Storage
News
6/22/2010
05:04 PM
Connect Directly
RSS
E-Mail
50%
50%
Repost This

Cloud Services To Top $68 Billion In 2010

Large enterprises flocking to cloud services will drive upwards of 15% growth in cloud services this year says Gartner with projected growth approaching $150 billion in 2014.

Global cloud services this year will reach $68.3 billion, as large corporations increasingly cut multi-thousand-seat deals with vendors, a market research firm says.

The expected revenue this year amounts to a 16.6% increase from 2009, when sales hit $58.6 billion, Gartner reported Tuesday. The strong growth is expected to continue for several years, reaching $148.8 bill in 2014.

"We are seeing an acceleration of adoption of cloud computing and cloud services among enterprises and an explosion of supply-side activity as technology providers maneuver to exploit the growing commercial opportunity," Gartner researcher Ben Pring said in a statement. "The scale of application deployments is growing; multi-thousand-seat deals are increasingly common."

Enterprises appear to be embracing the core ideas of cloud computing, such as pay for use, multi-tenancy and external services, Gartner said. In part, the popularity of the computing model is due to the financial downturn over the last 18 months, which has made the ability of cloud computer to deliver functionality less expensively than in-house software attractive.

"Cloud computing has become more material, because the challenges inherent in managing technology based on the principles of previous eras -- complex, custom, expensive solutions managed by large in-house IT teams -- have become greater, and the benefits of cloud computing in addressing these challenges have matured to become more appropriate and attractive to all types of enterprises," Pring said.

The largest markets from a geographic perspective are in North America and Europe. The U.S. share of the worldwide cloud services market was 60% in 2009, Gartner said. This year, the U.S. share will fall to 58%, declining to 50% by 2014, as companies and governments in other countries and regions adopt cloud services.

In industry terms, financial services and manufacturing industries are the largest early adopters, with communications and high-tech industries also leveraging the cloud in significant volume.

Despite the positive projections, large corporations still have "strong concerns" about cloud computing, with security topping the list, Gartner said. Other concerns include availability of service, vendor viability and maturity.

Comment  | 
Print  | 
More Insights
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Elite 100 - 2014
Our InformationWeek Elite 100 issue -- our 26th ranking of technology innovators -- shines a spotlight on businesses that are succeeding because of their digital strategies. We take a close at look at the top five companies in this year's ranking and the eight winners of our Business Innovation awards, and offer 20 great ideas that you can use in your company. We also provide a ranked list of our Elite 100 innovators.
Video
Slideshows
Twitter Feed
Audio Interviews
Archived Audio Interviews
GE is a leader in combining connected devices and advanced analytics in pursuit of practical goals like less downtime, lower operating costs, and higher throughput. At GIO Power & Water, CIO Jim Fowler is part of the team exploring how to apply these techniques to some of the world's essential infrastructure, from power plants to water treatment systems. Join us, and bring your questions, as we talk about what's ahead.