Cloud computing market to reach $100.4bn by 2016

Cloud computing market to reach $100.4bn by 2016

The adoption of cloud computing systems continues to soar, with a recent study suggesting the market has now reached a value of $100 billion (£64.73 billion), although it looks unlikely to stop there.

Research from Global Industry Analytics forecasts that the size of the entire global market is likely to reach $127 billion by 2017.

A key driver in such growth is the fact that cost savings available through implementing cloud computing are being realised by a larger number of companies, many of whom may have previously operated with an in-house infrastructure.

Many firms are finding that the cloud is helping to lower the costs of maintaining IT infrastructure, with the drain of future improvement to operations also becoming the responsibility of cloud providers.

A recent report from the Cloud Industry Forum (CIF) found the overall adoption rate of cloud computing services in the UK currently stands at 84 per cent, while nearly four in five (78 per cent) of users having implemented two or more services.

The rise of the cloud in the UK has been particularly meteoric, with the figure previously standing at 48 per cent in 2010.

For that figure to increase by 36 per cent within the space of just five years is a testament to the technology's popularity.

The overall levels of growth have surprised even the experts within the industry.

In a recent report by the Dell'Oro Group, director Sameh Boujelbene said: “Our recent interviews with end-users, component vendors and system integrators, indicate that Cloud adoption is occurring faster than industry expectations.

“The substantial increase in cloud uptake stems from both a declining scepticism of the Cloud among enterprise accounts, and the willingness of Cloud vendors to hear their customers’ concerns, mainly related to security and resiliency, and to provide platforms to meet their needs. We currently expect Cloud servers to reach 50 per cent of total server shipments by 2017; a year earlier than previously projected."