Predicted Cloud Spending Set to Rise 16% Year on Year

Cloud platforms are continuing to grow. As 2017 approaches its halfway point, technology continues to adapt and adopt new practices, especially with an uncertain economic forecast.

One of the major trends emerging already in 2017 is the focus on globally integrated networks. As both SMEs and larger businesses adopt more cloud applications and services, their strategies are focusing on how to cross geographical boundaries using technology and grow year on year.

Over the next decade, it’s predicted cloud spending will increase 16% year on year, meaning even more firms are exploring the ways in which they can utilise the cloud for their own expansion.

Cloud spending is growing at a faster rate than IT spending did. It means it’s creating new jobs across the economy and is increasingly being seen as a way to integrate enterprise growth and expansion, as well as shifting business culture. Cloud computing is becoming part of the way enterprise does business, as opposed to a tool.

According to Gartner, over the course of this year the cloud services market will expand to $246.8B, up 18%. Infrastructure as a Service (IaaS) as opposed to Software as a Service (SaaS) is proving to be the strongest area of growth, rising by a third compared with a fifth.

KPMG believes it is Platform as a Service (PaaS) that’s the fastest growing area of cloud platforms, with a growth of 32% this year rising to a predicted 56% in 2020.

In 2015, the global cloud IT market was $180bn. By 2020, it’s estimated the market will be reaching upwards of $390bn – more than doubling its worth in five years. The cloud will continue to evolve and develop, especially as technologies like AR, VR and the Internet of Things (IoT) become more commonplace and popular.

It’s obvious that business is investing in cloud platforms, and the figures suggest it is more of a strategic approach that firms are adopting. Instead of the piecemeal, testing approach, cloud platforms are offering enterprise the opportunity to look wholesale at what they can achieve, across the globe as well as in their own backyard. It is powering a vastly ambitious strategy.

Cloud computing and platforms have been the single biggest game changer in business over the last decade. By next year, it’s estimated that at least half of all the IT spend done by business will be cloud based, and within five years it’ll reach nearly 70%. For successful businesses, the cloud isn’t a test or an investigation anymore, instead it’s the opportunity to cross boundaries, to explore wholesale change in how IT can power business forward and integrate into growth strategy.

The forecasts for cloud spending are going upwards. Against a backdrop of economic uncertainty, businesses are exploring ways in which cloud platforms and cloud computing can help them to continue to expand. Rather than stand still, firms are looking to technology to help them move forward and work in a way that enables them to offer the same services and work across the globe.

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