Cloud computing, also known as network computing, has reached a tipping point, where in we are now entering an industry-wide transition from properiety platforms to more open and ubiquitous frameworks. The pattern of change is not just taking place in North America, but from Asia to Africa, enterprises of all sizes are looking to develop public and private elastic infrastructures.
This means the race toward massively scalable, fully parallel systems, is heating up, and leaving the current stack in the dust. The market is seemingly deep in the early stages, so there’s a lot of headroom moving forward. The current estimates from Gartner Research put cloud spending at 10% of total outsourced IT services for 2010; which looks to be a healthy number considering the global economy.
The broader take away from information like this, is that when looking to define your strategy (even in a local market), you have to be aware of the global picture; you need to have a good idea of where capital is shifting and resources are being allocated — because those decisions will drive the predominate narrative.
Read Gartner for the latest:
Gartner Survey Shows Cloud-Computing Services Represents 10 Percent of Spending on External IT Services in 2010
Key Issues Facing the Cloud-Computing Industry to be Examined at Gartner Symposium/ITxpo, October 17-21, in Orlando
STAMFORD, Conn., September 22, 2010 —
Cloud-computing services consumed from external service providers (ESPs) are estimated to be 10.2 percent of the spending on external IT services, according to a worldwide survey by Gartner, Inc.
From April through July 2010, Gartner surveyed 1,587 respondents in 40 countries to understand general IT spending trends and spending on key initiatives such as cloud computing. Participants were IT budget management professionals (CIOs, IT VPs, IT directors, IT managers, etc.). Four hundred eighty-four respondents participated in the drill-down on cloud computing and were asked how their organization’s current budget for cloud computing was distributed, as well as what their estimate was for spending next year.
“The cloud market is evolving rapidly, with 39 percent of survey respondents worldwide indicating they allocated IT budget to cloud computing as a key initiative for their organization,” said Bob Igou, research director at Gartner. “One-third of the spending on cloud computing is a continuation from the previous budget year, a further third is incremental spending that is new to the budget, and 14 percent is spending that was diverted from a different budget category in the previous year.”
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Depending on which magazine or website you read, the economy is either still in the tank or on its way to even more pain; but let’s see the truth for what it is in the IT industry, which is we’re officially back to business, building products, moving scale, and capturing demand for expansion of the digital universe — you can’t stop this kind of stuff. We’re seeing hardware upgrades, infrastructure investment (just look at the Data Center space), and globally the IT market grew by 8% year-over-year, to more than $1.5 trillion, according to International Data Corporation.
