The financial forecasts for 2014 cloud computing are predicting a hot year for cloud technologies. According to Forbes, end-user spending on cloud services will exceed $180 billion by the end of 2015 and by 2014, American businesses will spend more than $13 billion on cloud computing and managed hosting services. But what does this mean for you, as a cloud provider or a cloud customer? Here are some implications for the current rate of growth for the cloud computing industry.
Downward trend in prices
As more cloud hosting services emerge, companies need to maintain competitive pricing to retain and grow their existing customer base. Amazon Web Services, for example, had over 30 price cuts since 2006, and Microsoft Azure, Amazon, Google, and other cloud providers are following suit. The challenge for companies, however, will be to maintain the efficiency and integrity of their systems while reducing costs.
Move Your Accounting and ERP System to the Cloud
Transferring your CRM data to the cloud can be a tasking process, but there are countless other reasons why you should begin the migration process. Not only does it eliminate almost all infrastructure maintenance costs, cloud services offer upgrades and 24/7 support for the execs who will be using the system. Hybrid options also make the migration more feasible, and cloud providers will work with you to sort out compliance issues.
For cloud providers:
Paradigm shifts still to come…
Although cloud computing is on the tip of everyone’s tongue, it still only accounts for 14% of the average company tech spend. The major reasons: IT pros are hesitant to make infrastructure changes; there are lingering security concerns; and uncertainty surrounds compliance issues when putting information on the cloud. The top cloud services currently being invested in are web hosting, email hosting, online backup, and content filtering.
But new cloud services are beginning to dominate
A recent report by Spiceworks says that most spending on IT in 2014 will be recurring payments, meaning there will be less new investment in cloud computing services. When it comes to investing in new cloud services for the company, IT pros are looking to productivity solutions and online backup/recover services. Here is an infographic from Spiceworks on investment in cloud computing services:
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