Ah, the cloud: it keeps growing as a sector, with business and consumer spending on cloud computing expected to increase from nearly $67.8 billion this year to $107 billion in 2017.
The research, from the Telecommunications Industry Association (TIA), also shows that spending on data-center construction will rise 26 percent, from $23.5 billion in 2014 to $29.7 billion in 2017. Combined, the two sectors will show a nearly 50 percent increase in spending over the next four years as the demand for data continues to grow. The report forecasts continued double-digit spending growth in data center construction in 2014 and 2015, followed by single-digit gains in 2016 and 2017.
“Data is fueling unprecedented growth and technological change, and it’s clear from our report that this trend is not ending any time soon,” said TIA president Grant Seiffert. “As data becomes increasingly integral to business operations, both large and small U.S. companies will spend heavily on cloud services and data center construction. At the same time, the Internet of Things and continued smartphone demand will exponentially expand the amount of data available. Our research makes it clear that it’s all about data – building the infrastructure to manage, store and protect it.”
While small-to-medium-sized businesses have been a major driver of cloud services spending, accounting for 41.3 percent of the total U.S. market in 2013, the TIA Cloud Computing Report finds that large companies will be the chief driver of cloud computing services spending over the next four years – with enterprise cloud spending increasing from $40 billion in 2014 to $64.5 billion in 2017.
The report also noted that under the Cloud First Policy, where federal agencies must look to cloud options where practicable, federal IT spending decreased from $81 billion in 2010 to $75 billion in 2013. Over the previous decade, prior to the adoption of Cloud First, federal IT spending increased at a 6 percent annual rate. The efficiency created by cloud computing will drive growing government investment.
The explosion of connected devices will feed into the cloud trend as well: U.S. spending on IoT services rose more than 60 percent in 2013 and is projected to more than triple by 2017.