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Enterprise cloud spending to triple by 2017

Enterprise spending on cloud-related services will increase by 20 per cent in the coming year as the growing movement towards the cloud results in a tripling of revenue over the current decade.

Related: Private, public and hybrid clouds: A closer look at what needs to be considered

Data from IHS Technology shows that global business spending for cloud infrastructure and services will total $174.2 billion [£104.2 billion] this year, an increase of 20 per cent compared to the $145.2 billion [£86.9 billion] in 2013.

By 2017 the same company expects enterprise spending on the cloud to hit an estimated $235.1 billion [£140.7 billion], which is triple the $78.2 billion [£46.8 billion] spent in 2011 and driven by enterprises creating customised cloud storage solutions.

“With the cloud touching nearly every consumer and enterprise around the globe, spending for cloud-related storage, servers, applications and content will be dedicated toward building a framework that is rapidly scalable, highly dynamic, available on-demand and requiring minimal management,” said Jagdish Rebello, senior director and principal analyst for cloud and big data at IHS. “The robust growth will come as an increasing number of large and small enterprises move more of their applications to the cloud, while also looking at data analytics to drive new insights into consumer behaviour.”

Away from the enterprise sector, IHS noted that the number of global consumer subscriptions to the cloud is set to increase to 730 million this year, up 100 million on the figure reported last year.

Chief among those set to benefit from consumer adoption are wireless providers that are able to offer cloud services as a complementary service and this can be used to reduce churn – which is when customers defect to other operators.

Related: Cloud adoption to push global IT spending past $2t

Data released before the close of 2013 found that cloud adoption, in particular, is helping to drive IT spending and will help to push it past the $2 trillion [£1.2 trillion] mark in 2014 as companies rush to take advantage of the “third platform.”

Jamie Hinks

Jamie is a freelance writer with over eight years experience writing for online audiences about technology and other topics. In his time writing for ITProPortal he wrote daily news stories covering the IT industry and the worldwide technology market, as well as features that covered every part of the IT market, from the latest start ups to multinational companies and everything encompassed by the IT sector. He has also written tech content for our sister publication, TechRadar Pro. Jamie has since moved into sports betting content and is Content Manager at Betbull.