It has been reported this week that spending on cloud computing is growing at a faster rate than overall IT spending and will therefore pose a challenge to legacy hardware and software vendors. Cloud computing is expected to experience rapid growth moving forward, starting in 2012 by growing a further 19%. This will make it a $109 billion industry. By the year 2016, it is expected that the cloud computing sector will be worth around $207 billion, provided that forecasts are correct.
Global IT Market Growth
Meanwhile, the overall global IT market is expected to grow by around 3%. However, we must consider the fact that the cloud sector represents just a 3% portion of the overall $3.6 trillion that is spent on IT around the globe. However, Ed Anderson, Gartner cloud forecaster, has stated that the cloud market is responsible, in part, for the slowdown in growth for traditional on-premise hardware and software sales.
Furthermore, Anderson has suggested that the cloud model will create new IT spending opportunities whilst integration, customisation, hybrid cloud and on-premise cloud installations should all grow further whilst cloud adoption throughout businesses around the globe continues.
Cloud Growth Areas
It has been reported that the biggest growth in the cloud market in the coming year will be in infrastructure as a services (IaaS). This is expected to grow by 41% whilst management and security is the second largest growing cloud computing area with an expected rise of 27.2%. This will please those that have previously questioned the security of the cloud.
In addition, platform as a service (PaaS) is expected to grow by 26.6%, software as a service (SaaS) is to grow by 17.4% whilst business process as a service should grow by around 15%.
Conversely, computing hardware sales are only expected to grow by 3.4% this year. That still accounts for a massive $420 billion however. This growth has declined though from last year’s growth figure of 7.4%. Business software is expected to reach $281 billion this year with growth likely to be around 4.3%. This highlights the fact cloud computing really is on the rise whilst more traditional IT methods are declining.
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