IDC signals cloud explosion by 2014
A new IDC report signaled massive expansion and growth for cloud computing in the next five years.
Public IT cloud services revenue is expected to reach $55.5 billion in 2014, a significant increase from the $16 billion recorded in 2009. In the next five years, the compound annual growth rate is 27.4 percent, according to IDC.
Cloud applications led the industry in revenue in 2009, but IDC predicts there to be equal distribution of cloud services by 2014, meaning IaaS and PaaS will begin to make more gains over the next five years.
The United States dominated public IT cloud services in 2009 with more than 70 percent of the world total. However, IDC said countries from Western Europe and Asia and the Pacific will cut into that share, dropping the U.S. down to 51.4 percent.
Although cloud computing will achieve major gains by 2014, traditional IT products are also expected to grow by 5 percent during the same period.
Many companies around the globe have embraced cloud technology as a way to make their businesses more efficient and to reduce their long-term costs. By using cloud services, employees can access corporate information from any internet-connected site, enabling businesses to have greater flexibility and opportunities for growth.