Tuesday, October 21, 2008

Cloud Computing Services: A $42 Billion market by 2012?

IDC reporting:

“The cloud model offers a much cheaper way for businesses to acquire and use IT - in an economic downturn, the appeal of that cost advantage will be greatly magnified. This advantage is especially important for small and medium businesses, a sector that will be key target in any plan for recovery.”

Three market forces are helping drive the shift toward cloud computing, according to IDC:

  • the search for growth (and revenues) in important new segments, including emerging markets like Brazil, Russia, India and China (BRIC) as well as the small and medium business sector;
  • the shortcomings of traditional approaches in capturing the growth in these increasingly important markets;
  • and competitive pressures from new players with little to lose and everything to gain from pushing the new model.

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