Venyu Blog

The forecast calls for increasingly cloudy days ahead. According to a newly released (April 2010) report released by Global Industry Analysts, the cloud computing services market is expected to balloon to $222.5 billion over the next five years.

The new report indicates that the market for cloud computing services will reach that $222.5 billion market by 2015, fueled by end users modernizing their networking infrastructure, further proliferation of the Internet and the tumultuous economy. Those factors combine to create a perfect storm in which companies will upgrade their networks to cut costs and boost performance, the report indicates.

The Global Industry Analysts’ report comes on the heels of a report from market research firm Sand Hill Group that indicates IT budgets for the cloud are growing. The Sand Hill survey found that 70 percent of respondents currently spend less than 3 percent of their IT budgets in the cloud, while by 2013 80 percent expect to spend between 7 percent and 30 percent.

The recent numbers are a strong indicator of the growth of cloud computing. The $222.5 billion market for cloud computing services is a major jump from the roughly $70 billion IDC forecasted that cloud computing services would generate come 2015, as it is expected to grow about 26 percent annually. IDC said 2009′s cloud computing services market hit $17.4 billion and will hit $44.2 billion in 2013.