Cloud Spending to Increase 20% During 2014

Dollar Symbol CloudsEnterprise cloud spending for information technology services, applications and infrastructure is expected to reach an estimated $174.2 billion this year, up 20 percent from $145.2 billion in 2013, according to a new report from IHS Technology.

By 2017, global business spending on the cloud is projected to climb to $235.1 billion, which is triple the $78.2 billion spent in 2011.

Fueled by increased mobile device use and data sharing – companies such as IBM, Amazon and Microsoft spent billions already in transitioning their services to the cloud – the cloud provides a larger storage solution for smartphones, tablets and computers. Businesses are, in turn, investing billions in cloud-based architectures, said Jagdish Rebello, Ph.D., senior director and principal analyst for the cloud and big data at IHS.

“With the cloud touching nearly every consumer and enterprise around the globe, spending for cloud-related storage, servers, applications and content will be dedicated toward building a framework that is rapidly scalable, highly dynamic, available on-demand and requiring minimal management,” Rebello said. “The robust growth will come as an increasing number of large and small enterprises move more of their applications to the cloud, while also looking at data analytics to drive new insights into consumer behavior.”

Companies of all sizes are already offering consumers and enterprise users their own public or private cloud storage, including premium enterprise cloud services from Google, Apple, Amazon and Microsoft, and free-to-affordable consumer storage and file sharing from smaller competitors.

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