Sky’s the limit for cloud computing

Spending on cloud computing will more than double over the next four years, research house IDC has predicted.

The cloud computing market is currently worth an annual $16.2bn (£9.4bn) and accounts for four per cent of all IT spending. IDC predicts that this figure will rise to $42bn by 2012 and spending on cloud services will comprise nine per cent of the entire IT market. By that time cloud computing will account for a quarter of IT spending growth, with the figure rising to a third in 2013.

IDC singled out two key opportunities IT firms could exploit from the growth of cloud services. Firstly, companies were encouraged to consider offering their customers products and services using the cloud model. Secondly, firms were urged to consider how they could help customers wishing to enter the cloud services arena themselves. IDC's survey also revealed that the two most important things cloud service providers can offer are competitive pricing and performance level assurances.

Frank Gens, chief analyst for IDC, said: "A recent IDC survey of IT executives, chief information officers and their line of business colleagues shows that cloud services are 'crossing the chasm' and entering a period of widespread adoption. 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 and 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.