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Economy will push spending into the cloud: IDC

Economy will push spending into the cloud: IDC

IDC says the economic crisis will make more companies consider cloud computing services. Because of this, it has added US$8.4 billion to its global spending forecast for the technology, which it predicts will be a US$42 billion market by 2012.

“We really think the current situation will make more people consider cloud services models,” IDC IT services research director for Asia-Pacific, Chris Morris, told a conference in Auckland.

The analyst firm predicts most growth in the cloud services market will occur between 2010 and 2012, and Morris says it is shifting from the early adoption to the mainstream phase.

The delivery model will experience most growth in business applications and infrastructure, particularly storage, Morris says. He attributes this to the growth in storage of unstructured data, and regulatory requirements increasing the need for storage. “Most people don’t have the capacity to buy that level of storage,” he says.

According to a survey carried out by the firm in February, 52 percent of respondent companies in the Asia-Pacific region were already using or evaluating cloud computing, or were close to using it.

Respondents said ease of use, speed of deployment, paying for only what you use and having the latest functionality were the most appealing aspects of applications delivered via the cloud.

These drivers outranked others on the survey list that many vendors were “hyping” about cloud computing, such as savings on IT labour costs and low monthly payments,” says Morris. “People want speed and functionality.”

Morris says cloud services delivery partnerships will become commonplace, and companies which specialise in a particular market segment will increasingly be targets for acquisition by larger cloud players.


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