A recent IDC report on cloud computing showed that worldwide revenue from public IT cloud services exceeded $16 billion in 2009, and is forecast to increase at a compound annual rate of 27.4% to $55.5 billion in 2014. IDC noted that this growth is over five times the projected rate for traditional IT products (5%).
The report found that adoption of cloud computing has been bolstered by the recent economic downturn that has amplified the cost-cutting mantra of most organizations. Companies around the globe are redefining their portfolios to meet CIO needs for cloud services, while vendors are focusing their efforts as cloud suppliers.
Autodesk, which is a 3D design software company, said its adoption of cloud services has helped refine its operations. “We rethink our products to be more mobile, and cloud based,” Andrew Anagnost, head of strategy, planning and launch at Autodesk, told RCR Wireless News. Anagnost said that the company has focused on doing things different in the cloud, such as exploring collaboration tolls, design review and visualization.
Brazil-based Tecla started providing a public cloud service focused on small and medium enterprises. Tecla is a spin-off of Alog Data Center, which was bought earlier this year by global data center services provider Equinix and technology-focused private equity firm Riverwood Capital for approximately $83 million.
Tecla said it’s increasing its operations nearly 20% per year from its current $5 million in revenues, with stronger growth expected post-acquisition. “I guess it will be possible to grow four or five times in the next two years, including Latin America expansion,” said Cristian Gallegos, chief marketing officer at Tecla.
According to Gartner, 70% of companies with more than 1,000 employees have yet to start a cloud initiative. Security, lack of compliance reporting and auditing, and quality assurance are just some of the reasons for the delay. “The cloud is in its infancy, it’s brand new,” said Gene Phifer, VP at Gartner, during an interview with RCR Wireless News.
Phifer added that cloud computing is growing very rapidly and maturing quickly, with enterprise adoption expected to hit 90% in the next two to three years.