Cloud computing market to reach US$127bn by 2017 – GIA

| November 23, 2011

Yet another research report citing the vast potential of the cloud computing market. This time, it is Global Industry Analysts, based in San Jose, projecting a global market worth US$127 billion by 2017.

The primary driver for the clouds, according to GIA, is factors such as growing prominence of enterprise mobility, need for business continuity, and increasing adoption of cloud strategy among SMEs.

The benefits of cloud computing are earmarked as “radically lower IT costs,” allowing “even smaller companies to piece together an IT project without spending on purchasing legacy server, and storage systems,” and ease from “the burden of developing and maintaining the technological expertise required in running the network.”

“By offering a more cost-effective, less risky, and fundamentally faster alternative to on-site application developments, cloud computing is poised to transform the economics of information technology in the next few years,” GIA said in its release.

GIA continued that cloud computing adoption is being accelerated given the recent economic recession because it can potentially slash IT costs by over 35%.

“The bad economy fed the global cloud computing services market as cash, and revenue starved companies prowled for IT solutions that are cost-effective, require minimum to zero investments, and low management of computing resources. Technically, the feature of multi-tenancy, or the ability to scale up or scale down services on demand, makes fiscal sense in tough economic climate. And with cloud computing fitting the bill in every respect, the business case for the technology stands exemplified. In short, recession became the push factor, which tripped the market into the mass adoption stage.”

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Category: Cloud computing, Data centres, Green ICT, Press release

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