Forbes has released its online roundup of cloud computing that includes forecasts that include 2013’s Cloud data. These numbers are so encouraging, and even somewhat surprising. Forbes says that these latest forecasts “reflect the urgency enterprises have of making IT a foundation for strategic business growth.” We couldn’t agree more.
The following are the top 5, Samanage-selected, cloud computing predictions for 2014 and beyond:
1.Cloud computing will dominate IT spending
Gartner predicts that the bulk of new IT spending by 2016 will be for cloud computing platforms and applications with nearly half of large enterprises having cloud deployments by the end of 2017. Source: Gartner Says Cloud Computing Will Become the Bulk of New IT Spend by 2016.
2. Enterprise productivity improvements
McKinsey & Company’s report Disruptive technologies: Advances that will transform life, business, and the global economy projects that the total economic impact of cloud technology could be $1.7 trillion to $6.2 trillion annually in 2025. Of this total, $500 billion to $700 billion could come through productivity improvements for enterprise IT.
3. Public IT cloud service spending will grow immensely
IDC predicts public IT cloud services is expected to be more than $107B in 2017. Over the 2013–2017 forecast period, public IT cloud services will have a compound annual growth rate (CAGR) of 23.5%, five times that of the IT industry as a whole. The growing focus on cloud services as a business innovation platform will help to drive spending on public IT cloud services to new levels throughout the forecast period. By 2017, IDC expects public IT cloud services will drive 17% of IT product spending. Software as a service (SaaS) will remain the largest public IT cloud services category throughout the forecast. Source: IDC Forecasts Worldwide Public IT Cloud Services Spending to Reach Nearly $108 Billion by 2017 as Focus Shifts from Savings to Innovation.
4. Enterprises will adopt the cloud
Informatica’s presentation titled Enable Rapid Innovation with Informatica and MicroStrategy for Hybrid IT by Darren Cunningham, Informatica Cloud and Roger Nolan, Informatica Data Integration and Data Quality contains a useful series of cloud market overviews supported by 451 Research Gartner, Forrester and IDC data.
A summary of the statistics:
5. SaaS will rule IT applications
Boston Consulting Group writes that SaaS is a $15B market, growing at three times that rate of traditional software. BCG estimates that SaaS is 12% of global spending on IT applications. BCG evaluated how the economics of cloud software adoption vary for on-premises versus SaaS customers. BCG also interviewed 80 CIOs and found they were willing to consider SaaS solutions for 35% to 60% of their application spending. Source: (Free, opt-in required) Profiting from the Cloud: How to Master –> Software as a Service