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Monday 11 April 2011 16:06 Despite the cash-strapped business environment, flexibility rather than cost savings is the main reason for organisations adopting the cloud, according to research. Only 16% of organisations cited cost savings as the primary driver for cloud adoption, compared with 53% who outlined agility as the most important factor, according to a study by the Cloud Industry Forum .
Cloud computing is set for a bright future and will turn traditional outsourcing "upside down", but the latter is not likely to disappear for "many years yet", according to an industry analyst. Rolf Jester, Gartner's Distinguished Analyst and Asia-Pacific vice president for IT services, pointed out that cloud is not yet a major threat to outsourcing because deals that have been struck or are being negotiated, will remain valid for five to 10 years and are delivering value to businesses. "People aren't going to change just because something new comes along," Jester said in a phone interview with ZDNet Asia, noting that from a buyer's point of view, there are still concerns over security and privacy of data in cloud computing . In a traditional outsourcing contract, a company typically signs a multiyear mega deal with an IT services vendor which will manage specific functions for the company. Such large contracts, however, are dwindling , according to a previous Gartner report.
As Google and Amazon.com become preeminent sellers of tech services, companies from Accenture to Microsoft and Xerox must adapt to cloud computing By Arjun Sethi and Olivier Aries In the next five years outsourcing as we know it will disappear. The legion of Indian service providers will be sidelined or absorbed.
We've been reporting on server growth around cloud computing for a while. And now, according to IDC, worldwide server market revenues increased 11 percent in the second quarter . Clearly, this is not an aberration, but a counterintuitive trend.
Although it’s still early days for cloud computing, a raft of global analyst firms have been surveying IT decision makers to gauge what their intentions are around cloud adoption, as well as how much the market will be worth over the next five years. A collection of their findings is listed below. IDC’s global cloud computing studies show massive growth over the next few years. According to its findings, three of the top five benefits for cloud adoption in 2009 were linked to cost advantages, such as paying for what you use, streamlining payments with services, and shifting IT headcount costs to the services provider.
I came back from my summer break to an avalanche of cloud computing facts and figures in my inbox -- most recently CRN predicting that SMB spending on cloud computing would reach $100B by 2014. There are dozens of cloud computing forecasts and predictions out there (Reuven Cohen of Enomaly does a fantastic roundup on his blog ), but its sometimes a challenge to figure out what they all actually mean. 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 of course, the article that spurred this post quoted AMI research 's estimate that SMB cloud spending alone will reach $100B by 2014.