This is a story clipped from Computerworld NZ;
Spending on IT cloud services to reach US$42 billion by 2012, says research
The current economic crisis in the US may have a silver lining for IT companies that invest in cloud computing, as it will contribute to significant growth in that sector over the next five years, according to research firm IDC.
Based on a survey of IT executives, CIOs and other business leaders, IDC said that it expects spending on IT cloud services to reach US$42 billion by 2012, a growth of threefold that will in part be bolstered by the current economic crisis that began in the US and is spreading around the world.
“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,” Frank Gens, senior vice president and chief analyst at IDC, said in a statement. “This advantage is especially important for small and medium businesses, a sector that will be a key target in any plan for recovery.”
The story goes on to explain three market dynamics that IDC believe will drive the move to cloud based services by many consumers of IT services.