Enterprise Cloud Spending Expected to Soar

by Matt Klassen on April 9, 2014

Recently Cisco announced it would be constructing the world’s largest network of clouds with its varied partners, a timely move as the company attempts to secure some of the exponentially increasing expenditure the enterprise sector is pouring into cloud-based architecture and services.   In fact, according to market analysis firm IHS, enterprise spending on cloud based technology will increase to US$235 billion by 2017—a 35 percent gain on the $174 billion projected enterprise spending for this year.

“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.”

Simply put, the cloud is evolving into so much more than simply an online storage system; if utilized properly, the cloud could become a foundational technology in the growth of the Internet of Things, a framework that binds together all the different facets of our connected everything existence.

The current challenge facing the enterprise sector as it transitions into the cloud is creating an environment that blends on-site services and capabilities with the cloud. For businesses that means creating a basic platform of uniquely cloud-based applications which companies can then integrate into their existing services, a road that if traversed correctly will lead to an even greater expansion of similar cloud services and customer acceptance.

In sum, business are always in search of finding new ways to stay one step ahead of the game, but in today’s market establishing such a competitive edge depends on big data, a comprehensive picture of both customers and the market, but to tap into that sort of big data, businesses need the power and responsiveness of the cloud.

Despite the feeling that the cloud is an expansive new frontier for big data, though, the burgeoning technology sector will soon be quite a busy place, not only as business networking solutions like Cisco wrestle with the enterprise sector over the creation of cloud-based services, but as new players like mobile operators seek to mark their cloud territory as well.

In fact, IHS predicts that mobile network operators will soon turn to the cloud as the newest growth market, particularly as saturation of the global mobile handset prompts revenues to plateau. .“Mobile operators are desperately searching for the next innovation,” Rebello said. “Software and cloud services could be the next wave of differentiation that turns the downward mobile handset revenue curve back up.”

In the end, the cloud is shaping up to be so much more than simply an online storage service, morphing, Rebello notes, into a foundational technology for enabling the growth of the Internet of Things. It is in this connected everything environment, “in which connections move beyond computing devices and begin to power everyday gear and objects through all facets of life,” that the cloud “could reign supreme, providing the nexus where those critical connections can be made.”

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Written by: Matt Klassen. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

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