The global Cloud Computing economy is set to grow to over $200 billion over the next five years according to new research from think tank Global Industry Analysts.
This growth will be driven by end users updating their networking infrastructure and liberalisation in Internet access. The global recession will also play its part as "revenue starved companies prowl for IT solutions that are cost-effective, require minimum to zero investment and low management of computing resources."
The report argues that: “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.
"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. The main winners here will be the likes of Amazon Web Services (AWS), Google, IBM, Microsoft, Rackspace and Salesforce.com.
A second report from market research firm Sand Hill Group found that 70% of respondents currently spend less than 3% of their IT budgets in the Cloud, but by 2013 80% expect to spend between 7% and 30%.
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