Cloud investment to exceed $4bn in 2014

Cloud investment to exceed $4bn in 2014

Investment in hardware for cloud environments is set to grow beyond $4 billion (£2.34 billion) by the end of 2014, a new study has suggested.

Research from the International Data Corporation (IDC) found that spending on such services could grow at a year-on-year rate of 19 per cent over the course of the coming year.

Demand for cloud services is expected to be so great that it will account for 15 per cent of all money spent on IT infrastructure by the end of 2014 in the EMEA region – a substantial increase on the eight per cent recorded in 2011.

Further growth is expected over the course of the next few years, with IDC predicting a 22 per cent share by 2018.

An estimated $3.4 billion was spent on hardware for cloud environments in the EMEA region during 2013, a 21 per cent rise on 2012.

Among the main drivers for cloud adoption were the advantages associated with scalability, agile mobile applications support, and lower total cost of ownership.

IDC has subsequently forecast that hosted private and public clouds will grow rapidly over the course of the next few years.

In 2013, 42 per cent of spending on cloud hardware was absorbed by public cloud environments, 38 per cent by on-premises private clouds, and 20 per cent by hosted dedicated private clouds.

Giorgio Nebuloni, research manager, IDC EMEA Enterprise Server Group, said: "Along with Big Data, social, and mobility, cloud represents one of the four pillars of IDC's 3rd Platform vision — the new paradigm of IT usage that is revolutionizing the way technology is adopted in commercial and consumer environments.

"The rise of cloud has triggered a revolution in the hardware market."

IDC's report found that penetration for such services varies greatly from country-to-country, showing more advancements in Western Europe than in emerging EMEA markets.

In northern Europe, hosted private and public cloud deployments have increased rapidly over the last two years, mainly due to the influence of large multinational providers.