The cloud computing services market is expected to balloon to $222.5 billion over the next five years, according to a new report released by Global Industry Analysts.
The new report indicates that the market for cloud computing services will reach that $222.5 billion market by 2015, fueled by end users modernizing their networking infrastructure, further proliferation of the Internet and the tumultuous economy. Those factors combine to create a perfect storm in which companies will upgrade their networks to cut costs and boost performance, the report indicates.
"Against a background where companies are coerced into recalibrating their communication applications and network infrastructure into cost-effectively supporting distributed IT applications, the importance of cloud computing comes to the fore," Global Industry Analysts noted in the report. "As companies modernize their enterprise networking infrastructure, driven by the need to remain competitive, and retain critical survival capabilities, such as, agility and flexibility in a fast changing marketplace, it is opportunities galore for technologies like cloud computing and virtualization, among others. Simplicity in implementation and low costs are prime factors driving adoption of clouds by large and small enterprises alike."
Solution providers stand to gain from the predicted cloud computing services market explosion, as a large chunk of the $222.5 billion will move through the channel. Global Industry Analysts noted that the cloud computing services charge will be lead by marquee cloud vendors including Amazon Web Services (AWS), Google, IBM, Microsoft, Rackspace, Salesforce.com and many others.
Additional factors driving the staggering growth in cloud computing services include the increased number of vendors and offerings, the push toward more virtualization and green IT efforts and the slumping economy as "revenue starved companies prowl for IT solutions that are cost-effective, require minimum to zero investment and low management of computing resources."
The Global Industry Analysts report comes on the heels of a report from market research firm Sand Hill Group that indicates IT budgets for the cloud are growing. The Sand Hill survey found that 70 percent of respondents currently spend less than 3 percent of their IT budgets in the cloud, while by 2013 80 percent expect to spend between 7 percent and 30 percent.
The recent numbers are a strong indicator of the growth of cloud computing. The $222.5 billion market for cloud computing services is a major jump from the roughly $70 billion IDC forecasted that cloud computing services would generate come 2015, as it is expected to grow about 26 percent annually. IDC said 2009's cloud computing services market hit $17.4 billion and will hit $44.2 billion in 2013.