According to Computer Weekly magazine this month, ‘Cloud Computing is an increasingly significant segment of the IT outsourcing sector’, which to us shows a concern by the editors of a movement away from heavy initial investment, towards the more cost effective solutions presented by outsourcing. At the moment, the cloud represents a small fraction of the market for outsourced IT, with a $5bn share of a $140bn global market (Geitner 2012). However, the same figures also show that the cloud outsourcing market grew 48% last year, compared with 2% and 1% for application and datacentre outsourcing respectively.
For small businesses, this seems to be good news for the future. The growth of the market will surely lead to more investment, less barriers to entry and thus more competition. At the same time, the global recession means increased competition based on price, which should lead to plenty of great outsourcing deals for small businesses.
The movement away from heavy initial investment in favour of 12 month subscriptions or pay-as-you-go services also promotes the notion of data as a utility. Judging by the predicted downturn in revenues in the IT industry by 2016 (Geitner, 2011), prices should be falling even further, allowing small business to get their hands on truly affordable and secure private-cloud solutions.
For more information on the cloud and what to look for when searching for a disaster proof solution to your companies IT demands, visit our blog here!