Frank Gens, IDC, says "Cloud spending for the year 2012 will grow to $45 Billion. There are lot of activities around cloud that we expect to see, such as expect to see SME/SMB to increase their experimentation and implementation of cloud-infrastructure and applications. Most important to watch out is how cloud computing will impact the mobile infrastructure and ecosystems in 2012. ".
The market for public cloud computing services is large and growing. IDC estimates the market for public cloud products and services at $16B in 2010, growing to $56B by 2014. Gartner more optimistically estimates the cloud market at $150B by 2013 while Merrill Lynch estimates the market at $160B by 2011 and alone, the SMB cloud spending alone will reach $100B by 2014. Regardless of the exact numbers, the conclusion is that market for public cloud infrastructure, platforms and applications is large and growing much more quickly than any other type of IT spending.
In a survey conducted by Vmware and CIO (Report:CIO Global Cloud Computing Adoption Survey, 2011) it was apparent that, Cloud computing remains a top IT investment priority for 2012 and in the long run, will have a transformational impact. Analsyst say, companies will not adopt a single cloud service model, but rather will use a combination of various public cloud services. 2012 will be the year when customers start to plan and implement a service management strategy for the cloud.
88% of the respondents rate cloud computing as priority over the next 18 months, which clearly shows that cloud-adoption is maturing quickly; while 2/3 of respondents planning or adopting cloud today, 22% already in department and enterprise-wide deployments. Most companies are starting cloud with IT Infrastructure Transformation initiatives and it's important to note down that Business Agility is the top driver for cloud.
Traditional outsourcing vendors will also be challenged to adapt to these new realities. Cindy Warner, Analyst-PwC’s cloud computing practice, says "given the market’s immaturity, the cloud is a Rorschach test of sorts. It can mean whatever an IT department happens to need or whatever a vendor happens to sell. Business executives are buying into the promise of cloud computing. She adds, Cloud computing will be a key strategy in 2012, that CIOs can employ to manage the growth in demand for IT services and to provide their enterprises with new levels of agility and flexibility .
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