Spending on cloud architecture and services expected to reach $174bn in 2014 alone.
Enterprises are projected to spend over $235bn on cloud architecture and services by 2017, representing a 35% increase on the amount set to be spent in 2014, according to a new report..
The report from industry analysts IHS Technology stated that total expenditure on cloud services and infrastructure is expected to reach $174bn in 2014, a 20% increase against last year, when $145bn was spent.
IHS cite Cisco’s recent announcement that it will be building the world’s largest cloud network as a key indicator that the market is rapidly expanding, allowing service providers to capitalise on the rising expenditures by enterprises for cloud architecture and services.
IHS information technology senior director Jagdish Rebello said that enterprises are trying to create faster, more efficient IT environments in order to enable more responsive, agile and successful businesses.
"Enterprises today are trying to create faster, more efficient I.T. environments to ensure more responsive, agile and successful businesses," said Jagdish Rebello, Ph.D., senior director for information technology at IHS.
"In these cloud-based settings, enterprises also want to integrate the deep analytical power of big data, which will give them competitive advantages through insights about present and prospective customers."
With enterprises replacing their on-site services with cloud capabilities, mobile network operators looking for growth are expected to follow suit, as global mobile handset market revenue is anticipated to reach its highest level in the coming years.
Mobile operators are desperately searching for the next innovation, Rebello believes, saying that software and cloud services, "could be the next wave of differentiation that turns the downward mobile handset revenue curve back up."
The report revealed that by 2017, over 78% of disk storage will use cloud connections to digital content, which will increase the need for less expensive cloud storage.