Cloud computing is a relatively recent breakthrough in technology but it has already begun to take over especially in the business world. The cloud has been growing steadily the past few years and it is only expected to increase.
Technology researchers believe that cloud computing will reach its defining year in 2016 when it is expected to represent the bulk of IT spending. In that year, it is also believed that the private cloud will begin to give way to a hybrid cloud that nearly half of all large enterprises will have by the end of 2017.
Cloud growth has and will continue to be largely driven by businesses looking for cost-effective ways to provide IT services and increase agility. The appeal of cloud computing attracts mainly small to medium sized businesses that want to expand but also larger businesses that want to lower their IT spending. Cloud computing is a form of technology that delivers scalable and elastic IT enabled capabilities as a service using the internet. It has become a kind of buzzword especially in the business world as more people discover the potential benefits it can offer.
Development and Growth
The development and growth of cloud computing has been at much higher rates than IT spending generally. The worldwide cloud computing market is expected to grow at a 36% compound annual growth rate, reaching a market size of $19.5 billion by 2016. Cloud computing models like software-as-a-service (SaaS) and infrastructure-as-a-service (IaaS) are projected to have growth rates of 34.4 percent and 39.8 percent. Growth in the cloud is driven by new IT computing scenarios that are deployed using cloud models as well as the migration of traditional IT services to cloud service alternatives. Cloud computing, however, is not only one phenomenon but is a spectrum of things with divergent strategies. Cloud projects have evolved in different paths and will continue to evolve along the way.
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Increased Spending on Cloud
Most enterprises that already have a portion of their budgets reserved for cloud computing are planning to increase their spending on the cloud. While the most popular form of cloud computing is the private cloud, SaaS and IaaS are not far behind in business’ IT spending. Even though the majority of enterprises plan to expand their cloud computing budget they continue to face certain roadblocks to getting more value out of the cloud. Politics, budget, time and staff are the main issues preventing companies from getting the full potential out of their cloud computing. Security is also a big issue especially when it comes to cloud adoption, as well as migration and integration of on-premise systems with cloud applications.
In spite of some of the issues surrounding cloud computing, businesses are embracing the new technology and its rapid growth is expected to continue for the next few years. Eventually cloud computing will become the norm for businesses that want to have a competitive edge and stay up to date with what other companies are doing. As concerns about security become resolved, nearly every business will adopt cloud computing as their main source of IT.
This article is authored by Leo Hart, an expert in cloud computing and specializes in dedicated virtual servers for Custom Cloud.
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