Overall cloud spending is rising at break neck speeds, faster than expected, but what’s important is putting your money in the right area(s)
Corporate spending on cloud computing is growing at an astronomical rate, according to a report from IHS Technology, reaching $235.1 billion in 2017, triple the $78.2 billion spent in 2011.
Then there’s the perennial question of “What is cloud computing?” while enterprise technology companies muddy the waters of the definition, launching every stone they can muster, into the bloody deep that is the “cloud” cool-aid, to show the MAMMOTH revenue numbers.
Plus, an important part of drinking the cloud cool-aid stems from taking traditional IT systems and moving them out of the way in order to make room for cloud implementation.
That’s NOT new money, just moved money.
Now, the question that’s most important to you and other business owners, however, is how that $235.1 billion will be spent. They’ll of course include:
- Application hosting
- Data analytics
Yes, Infrastructure, better known as Cloud Hosting or Infrastructure as a Service (IaaS) will receive the majority of the spending, including enterprise-to-cloud storage migration and computing.
Simple data center services will be hosted in public clouds.
Although there will be an explosion in private cloud growth in the next few years, the expanding use of public IaaS clouds will account for the largest increase.
However, most businesses will be utilizing private cloud services for its robust security options over public cloud services. With that said, the beauty of IaaS is that cloud spending is easy to identify and budget.
The explosive growth in cloud computing will separate into specific areas of expansion, and they’ll be easier for us to understand.
Yes, watch this cloud growth like a hawk in the next coming months and years, but focus on the specific parts most likely to bring value to your business such as IaaS, that’s where you want to position your own spending.
Also, make sure you understand the differences between private and public cloud.