IDC reporting:
Source“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.
Over the next five years spending on IT cloud services is expected to grow nearly threefold, reaching $42 billion by 2012 and accounting for 9 percent of revenues in five key market segments, according to a survey from IDC.Spending on cloud computing is on track to accelerate during the forecast period, capturing 25 percent of IT spending growth in 2012 and close to a third in 2013."A recent IDC survey of IT executives, CIOs, and their line of business LOB colleagues shows that cloud services are 'crossing the chasm' and entering a period of widespread adoption," said Frank Gens, senior vice president and chief analyst at IDC."Moreover, IDC expects the cloud adoption trend to be amplified by the current financial crisis. 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."
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