According to Gartner, worldwide cloud services revenue is forecast to reach US$68.3 billion this year, a 16.6 percent increase from 2009 revenue of $58.6 billion. The industry is poised for strong growth through 2014, when worldwide cloud services revenue is projected to reach US$148.8 billion. Gartner research vice president Ben Pring says it is seeing an acceleration of adoption of cloud computing and cloud services. "IT managers are thinking strategically about cloud service deployments; more-progressive enterprises are thinking through what their IT operations will look like in a world of increasing cloud service leverage. This was highly unusual a year ago." Gartner estimates that, over the course of the next five years, enterprises will spend $112 billion cumulatively on software as a service, platform as a service, and infrastructure as a service combined. "After many years of germination, most notably in the SaaS arena, the core ideas at the heart of cloud computing — such as pay for use, multi tenancy and external services — appear to be resonating more strongly," says Pring. "In part, this can be explained by macroeconomic factors. The financial turbulence of the last 18 months has meant every organisation has been scrutinising every expenditure. An IT solution that can deliver functionality less expensively and with more agility is hard to ignore against this backdrop." According to Gartner, the US share of the worldwide cloud services market was 60 percent in 2009 and will be 58 percent in 2010, but by 2014, this will be diluted to 50 percent as other countries and regions begin to adopt cloud services in more significant volumes. Western Europe is expected to account for 23.8 percent of the cloud services market in 2010, and Japan will represent 10 percent. In 2014, the UK is forecast to account for 29 percent of the market, while Japan will represent 12 percent of cloud services revenue. "We have not seen any evidence yet to support the often-touted hypothesis that smaller and/or developing countries will leapfrog Western markets — and come to represent a large proportion of the overall worldwide market — through their adoption of the internet and cloud services," says Pring. Pring also says that although interest in cloud computing has grown, many enterprises still have strong concerns about the idea of cloud computing and cloud-computing products as well as cloud services. Security is primary among these, while other concerns include availability of service, vendor viability and maturity.
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