Cloud Spending by Companies Outpaces Predictions, Forrester Says

Grazed from BusinessWeek. Author: Ian King.

Corporate spending on cloud-computing services, software and resources will reach $191 billion in 2020 as companies replace older equipment and programs with Internet-based systems, a research firm said. Growth in the cloud market is outrunning prior forecasts, according to Forrester Research Inc. (FORR:US), which projects a rise from $58 billion last year to $72 billion this year.

The market is on course to be about 20 percent bigger by 2020 than estimated earlier, Forrester said in a report to be published today. Cloud computing has reached “hypergrowth” as businesses replace standard licensed software from companies such as Oracle Corp., SAP AG and Microsoft Corp. with Web-based subscription versions, known as software-as-a-service, said Andrew Bartels, an analyst at Forrester…

Many companies have also shunned building out their own data centers in favor of using Internet-based computing power from outside vendors, he said…

Read more from the source @ http://www.businessweek.com/news/2014-04-24/cloud-spending-by-companies-outpaces-predictions-forrester-says

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