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Cloud adoption to push global IT spending past $2t

Cloud adoption and big data are set to push global IT expenditure past the $2 trillion [£1.2 trillion] mark in 2014 as more and more firms begin to take to cloud services.

IDC figures show that spending is set to increase by five per cent over the course of 2014 with the “third platform”, which includes cloud, big data, social networking and mobile, contributing significantly to the increase.

"Big data, cloud, mobility and social will have a huge impact on how IT is adopted in 2014. Marketing will be perhaps the biggest driver for the use of cutting edge IT as they seek new innovative ways to reach out to and sell to customers," said Claus Mortensen, principal for emerging technology research at IDC Asia/Pacific.

Cloud spending, in particular, is likely to increase by 25 per cent to $100 billion [£61 billion] in 2014 with IDC noting there will be a “dramatic increase in the number of data centres as cloud players race to achieve global scale”.

Within the cloud itself IDC expects value to “start to migrate up the stack” from infrastructure-as-a-service [IaaS] to platform-as-a-service [PaaS] plus from generic PaaS to data-optimised PaaS. Evidence of this is already manifesting itself in Amazon Web Services [AWS] rolling out an “avalanche” of PaaS offerings for developers and higher value offerings with a battle starting as to which firm can position itself best in the third platform.

"After a year in which a very high-profile tech CEO lost his job, a major IT player went private, numerous vendors endured cash cow stagnation, and billion-dollar 3rd Platform acquisitions bets were made, it's clear: the third Platform finally has the necessary attention from the IT industry's leaders,” said IDC chief analyst Frank Gens.

“In 2014, we'll see every major player make big 'put up or shut up' investments to scale up cloud, mobile, and Big Data capabilities and fiercely battle for the hearts and minds of the developers that will create the solutions driving the next two decades of IT spending,” he added.

When it comes to big data, IDC expects spending to increase by 30 per cent in 2014 to pass $14 billion [£8.5 billion] with demand for skills in the area continuing to rise much quicker than supply.