Revenue from sales of cloud computing products and services is likely to reach nearly $150 billion by 2020 from approximately $20 billion.
Cloud computing products and services is likely to account for 8 percent of all technology spend, according to Bain & Company.
“Cloud computing is at the intersection of two very powerful trends that have been playing out for some time: greater use of capability sourcing across the business value chain and the shift from capital intensive computing models to variable-use ones,” said Michael Heric, a Bain partner and lead author of the study.
Bain surveyed 494 North American CIOs and IT decision-makers.
10 percent of companies are driving nearly 50 percent of the market for cloud solutions.
Over the next three years, nearly 65 percent of the approximately $20 billion in growth in this market will come from companies that make little or no use of cloud today.
Faster growing companies (greater than 10 percent per year) use 144 percent more cloud services than slower-growing companies.
A CIO that has entered their position within the last year will have 141 percent more of their environment in the cloud than a longer tenured CIO (greater than 6 years).
CIOs with diverse business experience (entrepreneurs, business school graduates, business unit operators) use 82 per cent more cloud services than those who have spent their professional careers predominantly in IT.
Cloud adoption is accelerating as the technology comes down the cost curve. In the next 3 to 5 years, for certain workloads, cloud pricing will be 30 to 40 per cent lower than legacy technology.
Cisco to enhance Cloud offerings to Indian telecom operators
Networking giant Cisco is stepping up its presence among the Indian telecom operators by offering more Cloud services. Cisco says majority of Indian mobile operators have already started adopting Cloud.