Cloud Computing -5, How big is the market?

As I mentioned earlier, there has been lots of media bytes on cloud computing. As expected various leading research agencies have come out with their market estimates. In this post i will put them along side other estimates. ie. cloud computing Vs. other trends in IT. Then we will be able to understand the importance and relevance of clouds. And that its not going to be just hype !

So the right place to start at  Gartner Hype Cycle . Gartner has seen cloud computing already reaching the peak. This means that cloud computing will be adopted into mainstream in 2-5

 years.

IDC estimates the size of the cloud computing infrastructure market as a whopping $ 42 bin 2012, up from $16B in 2008.

Key take aways from this is

• Spend on cloud computing is growing  6 times faster than the traditional IT spending

IDC also analyses that Cloud computing will account for 25 percent of the net growth of technology from 2011 to 2012, and 30 percent of growth from 2012 to 2013. The growth currently witnessed is slow because it is in an adoption stage. And cloud computing is already 'crossing the chasm' in the  Technology adoption life cycle

Forrester is also bullish on cloud computing. Gartner has also estimated for SaaS (Pls see my earlier posts on cloud computing). They say spending on SaaS will rise 22% in 2009 to 9.6b. One needs to contrast it with Gartner's figure that IT spend is going to decline by 3.8% in this year !

I didnot come across any estimates for cloud computing market in India, however there are some news reports rounding of to around $ 1 b.

In the next post I will go deeper into the challenges regarding adoption.

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