Skip to main content

Worldwide IT Spending on Cloud Services

According to IDC, worldwide IT spending on cloud services will grow almost threefold, reaching $42 billion, by 2012.

As the cloud computing model offers an efficient way for businesses to acquire and use IT, IDC expects its adoption to be amplified by the cost-cutting needs of most organizations today.

In a recent IDC survey conducted with 696 IT executives and CIOs across Asia-Pacific excluding Japan (APEJ) to gather their views, understanding, current usage and planned usage of cloud computing, it was found that 11 percent of the respondents are already using cloud-based solutions.

A further 41 percent of the respondents indicated that they are either evaluating cloud solutions for use in their businesses, or already piloting cloud solutions.

When asked about their opinion of the current state of cloud computing, 17 percent of the respondents stated that although cloud computing is very promising, there are currently not enough services available to make it compelling.

For IT vendors to be successful in the cloud market, they will have to address user's cost concerns. The survey also revealed that more than 50 percent of the respondents indicated cost cutting as the key driver behind the adoption of cloud computing.

However, it is also important to note that supplying low-cost services alone will not guarantee success, as users are also indicating that any cloud solution they buy must offer competitive pricing, offer Service Level Agreement (SLAs) and offer complete solutions.

Popular posts from this blog

The $150B Race for AI Dominance

Two years after ChatGPT captured the world's imagination, there's a dichotomy in the enterprise artificial intelligence (AI) market. On one side, technology vendors are making unprecedented investments in AI infrastructure and new feature capabilities. On the other, there's measured adoption from customers who carefully weigh the AI costs and proven use case benefits. Artificial Intelligence Market Development The scale of new investment is significant. Cloud vendors alone were expected to invest over $150 billion in capital expenditures in 2024, with AI infrastructure being the primary driver. This massive bet on AI's future is reflected in the rapid growth of AI server revenue. Looking at just two major players - Dell Technologies and HPE - their combined AI server revenue surged from $1.2 billion in Q4 2023 to $4.4 billion in Q3 2024, highlighting the dramatic expansion. Yet despite these investments, the revenue returns remain relatively modest. The latest TBR resea...