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How Good Is the Financial Crisis for Cloud Computing Providers?

The disruptive vectors of the market will be among the highest growth sectors in 2009: IDC

Dell's Cloud Computing  Blog

Cloud computing provides a cost-effective architecture that has enabled new business models including Platform-as-a-Service (Paas) and Software-as-a-Service (SaaS). The financial crisis might spell good news for cloud providers up and down the stack. According recentarticles,

IDC predicts that the current economic crisis in the U.S. will contribute to cloud computing growth over the next five years and spending on IT cloud services will reach $42 billion by 2012. Frank Gens, senior vice president and chief analyst at IDC believes, "The disruptive vectors of the market will be among the highest growth sectors in 2009 as their advantages are magnified in a down economy, and suppliers who slow down their transformation will limit long-term viability and miss near-term growth."

John Horrigan at Pew Research offered this look at cloud adoption in the consumer space, which has been driving the growth of the big public platforms long before the economic downturn.

As IT organizations are pressured to find yet more efficiency it will be interesting to see how quickly they find the confidence in providers to follow consumers to the cloud. At a snap poll of attendees conducted this week at Gartner’s Data Center Conference the results appear promising.

 

More Stories By Todd Brannon

Todd Brannon is market development manager for the Dell Data Center Solutions Division. He joined Dell in 1995 as one of the founders of the System Performance Analysis Lab and has since held a variety of enterprise product management roles, including leading the launch of Dell’s server and storage business in Japan. Prior to Dell, Brannon served as an officer in the U.S. Army and holds a B.S in Electronic Media from Syracuse University.

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