28 Oct 2008

Crunch will 'amplify cloud adoption'

The credit crunch will enhance the rate at which businesses adopt cloud computing, research has suggested.

According to figures released by industry analysts IDC, spending on cloud services will almost treble by 2012, reaching $42 billion (£27.2 billion).

Meanwhile, firms adopting the cloud computing delivery model will also account for 25 per cent of total IT spending growth in 2012 and more than a third of growth the following year.

Frank Gens, senior vice president and chief analyst at IDC, said the impact of the economic crisis on businesses will amplify cloud adoption.

"The cloud model offers a much cheaper way for businesses to acquire and use IT - in an economic downturn, the appeal of that cost advantage will be greatly magnified," he added.

Smaller businesses will be able to take advantage of the affordability of cloud computing, Mr Gens noted.

The findings support figures recently released by Gartner, which predicted a 27 per cent worldwide increase in spending on cloud computing within the enterprise market by the end of this year.