Last week I posted a similar article and I made estimates that were not correct so I deleted the previous post and updated this to reflect the new data I obtained.
The world market growth of cloud computing is growing from an estimated $56 Billion this year to $150 Billion in 2013 according to Gartner. Merrill Lynch estimated as much as $160 Billion in 2011.
So what percentage of the world computing market is cloud computing?
According to Gartner, as reported by Reuters, world Information Technology spending in 2009 will be 3.5 Trillion. I would estimate this will grow to 4.2 Trillion in 2013. This equates to a current world cloud computing market at less than 2% of the entire market today and around 4% somewhere between 2011 and 2013.
Well, 2% – 4% sounds very small! The important point is the actual dollars and the growth rate. Not only is the market growing but the growth rate is growing! If the growth rates of world Information Technology and world cloud computing stay relatively constant colud computing breaks through 10% in 10 years 2019 and reaches 30% five years later 2024. The growth will slow at some point but it may accelerate further before it slows! The other key thing to watch here is what segments of technology are served well by the cloud. Email and CRM are leading in this space as well as IT support services with remote monitoring and remediation. (Incidentally if cloud computing and information technology growth could stay at a constant growth rate then in 2030 cloud computing would be 100% of the market)
What are the implications of this?
Although cloud computing is in it infancy it is growing very fast and will probably grow faster before slowing. Sometime in the next 5 years CIOs and IT Directors will have to develop a cloud computing strategy. IT companies in the cloud computing space will continue to benefit and those that are not will suffer.