Wednesday, August 3, 2011

Where's the Growth?

The Sunny SideNow that US economic growth seems to have stalled again, it is always good to hear some good news from a sector that is still growing: IT.

Gartner expects spending on IT to grow this year by 7%. Not bad. Even better is Gartner's prediction that spending on public cloud services will grow by 20%. Not just in 2011, but for each of the next five years.

Customers are becoming more comfortable with cloud computing. "Initial concerns about security, response time and service availability have diminished for many organizations as SaaS business and computing models have matured and adoption has become more widespread," said Gartner's Tom Eid.

Forrester paints a similar picture. It expects a year-to-year growth of over 20% for the cloud computing market for many years to come.

Gartner's recent survey of CIOs indicates that currently only 3% operate more than half of their infrastructure and applications in the cloud. But this number is expected to grow to 46% by 2015. That's just 4 years from now. Clearly the cloud is one of the key topics for today's CIOs.

More specifically, Forrester explains that it is Software-as-a-Service (SaaS) that gets the attention. SaaS is good for an estimated 80% of the global public cloud market. Forrester expects the SaaS market size to grow to $132.57 billion by 2020.

So even though there may not be much growth in the US economy as a whole, there is at least one very bright spot. And because cloud-based software can help organizations focus on their core business and save money, it may even bring growth back to the rest of the economy.