The global cloud computing market is expected to grow from $40.7 billion to $240 billion by 2020, a new report has predicted.
According to a report released by market research firm Forrester Research, the market for cloud computing is set to grow by leaps and bounds as companies rush to move their networks onto cloud platforms.
The Forrester report, titled Sizing the Cloud, takes into consideration three basic forms of cloud computing: Infrastructure as a Service (IaaS), virtualisation and Software as a Service (SaaS).
According the research firm, the IaaS market, pioneered by companies like Amazon Web Services and Rackspace, will reach its peak of $5.9 billion by 2014, after which, it will be plagued by commoditisation, price deterioration, and margin pressure.
The company also expects the SaaS market, which currently is worth $21.2 billion in total revenue, to grow for the next five years to reach a market value of $92.8 billion by 2016. From 2016 to 2020, the market is expected to reach a saturation point with no significant growth.
"SaaS applications tend to be bought by business people who are less concerned about the issue of privacy than IT staff and developers, who tend to buy the IaaS applications," said Forrester analyst Stefan Ried said in a statement to Computer Weekly.
"IT staff are used to privacy challenges from their efforts spent installing on-premise technology and security," he added.
This report comes just after a major outage of amazon's Web Service has damaged some people's assessments of cloud computings reliability.