The market value of the cloud computing sector for small and medium-sized businesses could reach $8.6 billion by the end of 2011 according to research.
Citing data from a survey by virtualisation software maker Parallels, hosting firm Rackspace said that investment in the cloud computing sector could grow to $13 billion in the coming few years.
The prediction is part of a survey which polled executives from five hundred companies in diverse sectors having between 1 and 1,000 people in their employment.
According to the survey, a majority of small and medium-sized businesses will invest in moving their infrastructure to the cloud with investments amounting to $4.9 billion. By the end of 2011, cloud investments in web hosting will amount to $2.3 billion while $1.4 billion will be spent on cloud-based messaging and collaborative services.
Parallels president of marketing and alliances Jack Zubarev, said in a statement to Information Week, “We have not used the word 'cloud' because we believe this word has meaning in the industry, but not much meaning among SMBs. We did not want to confuse them with terminology. We believe that there will be significant price pressure, and the prices of hosted and cloud services will continue to decrease.”