The global market for cloud-based architecture and related services and applications is expected to surge through 2017, analysts say. Demand for a variety of virtualized “as a service” capabilities such as infrastructure, software and security also will increase.
Worldwide spending on cloud-related technologies and services will be in the range of $174.2 billion in 2014, a 20 percent increase from the $145.2 billion spent in 2013, states a recent report by IHS Technology. According to IHS, by 2017 the cloud market will be worth $235.1 billion, triple the market’s $78.2 billion in 2011.
This strong projected global growth includes both the commercial and government sectors, says Dr. Jagdish Rebello, the senior director and principal analyst for the cloud and big data at IHS. He notes that many commercial and public enterprises gradually are moving their databases to the cloud, have cloud strategies or are considering migrating their data and services to the cloud.
But despite cloud’s growth, regional and market differences exist in cloud services, Rebello reports. For example, regions with poor broadband infrastructure will see slower cloud growth/access, while more developed regions of the world have faster cloud adoption rates, he explains.
Security is another issue for organizations adopting cloud strategies. For example, Europe’s stringent rules for data security mean that organizations on the continent will migrate to cloud services more slowly than those in the United States, Rebello says.
In consumer and retail markets, Rebello sees two types of growth: customer engagement and access to media content. Growth in the first area is in the form of messages and subscription information sent to customer’s computers and mobile devices—an area where cloud-based applications are very useful, he says. The other area is access to entertainment content such as movies, games and music stored in the cloud.