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IDC Says Cloud Computing Is More Than Just Hype; Worldwide IT Spending On Cloud Services Expected To Reach US$42 Billion By 2012

  • 11 March, 2009 10:21

<p>IDC Australia is hosting a Cloud Computing conference on 25th March at The Westin Hotel, Sydney. Details at the bottom of this media release.</p>
<p>Sydney, 11 March 2009 – According to IDC, worldwide IT spending on cloud services will grow almost threefold, reaching US$42 billion, by 2012. As the cloud computing model offers a much cheaper way for businesses to acquire and use IT, IDC expects its adoption to be amplified by the cost-cutting mantra of most organisations today.</p>
<p>In a recent IDC survey conducted with 696 IT executives and CIOs across Asia/Pacific excluding Japan (APEJ) to gather their views, understanding, current usage and planned usage of cloud computing, it was found that 11% of the respondents are already using cloud-based solutions. A further 41% of the respondents indicated that they are either evaluating cloud solutions for use in their businesses, or already piloting cloud solutions. When asked about their opinion of the current state of cloud computing, 17% of the respondents stated that although cloud computing is very promising, there are currently not enough services available to make it compelling.</p>
<p>Chris Morris, Director for IDC's Asia/Pacific Services Research and Lead Analyst for Cloud Computing Research in Asia/Pacific says, "Future uptake of cloud computing looks strong. Over the next three years, as the use of cloud services expand from the domain of early adopters to that of the early majority, it becomes critical for IT vendors to develop strong cloud offerings, and play a leadership role in aligning their new cloud products and services with their organisation, their traditional offerings, partner ecosystem, and customer and market requirements. IT vendors who fail to seriously contend for a leadership role will be left with a minority share of the lucrative pie."</p>
<p>For IT vendors to be successful in the cloud market, they will have to address users’ cost concerns. The survey also revealed that more than 50% of the respondents indicated cost cutting as the key driver behind the adoption of cloud computing.</p>
<p>However, it is also important to note that supplying low-cost services alone will not guarantee success, as users are also indicating that any cloud solution they buy must offer competitive pricing, offer Service Level Agreement (SLAs) and offer complete solutions.</p>
<p>“Some IT vendors are well positioned to do this but others who are focused on a single solution will need to build strong partner ecosystems to bring broad solutions to their customers. The time to do that is now, as our survey respondents have indicated that in three years time, their use of cloud-based services will be very different as compared to what we see today” added Chris.</p>
<p>In Australia, local research has shown that Cloud Computing intentions are high. At least five out of ten respondents are considering use, or are already piloting / using cloud computing within the enterprise. This is balanced by the view that this may be just a renaming of an older concept, vendor hype and more time is needed to realise the benefits.</p>
<p>"However, the economy may play a part in actually slowing down cloud adoption, as an overwhelming 37% of respondents say that it is more difficult to justify investigating a new technology in times like this. This may be true if there are other perceived, 'less risky' ways to cut costs in their IT organisation," said Linus Lai, Associate Director of Research and Consulting at IDC Australia.</p>
<p>IDC is hosting a Cloud Computing Conference at the Westin Hotel in Sydney on Wednesday, 25th March 2009. For more information about the conference or to register, visit</p>
<p>- ENDS -</p>
<p>About IDC's Cloud Computing Conference
Cloud computing is reshaping the IT marketplace, creating new opportunities for suppliers and catalysing changes in traditional IT offerings. Over the next four years, IDC expects spending on IT cloud services to grow almost threefold, reaching $42 billion by 2012. More importantly, spending on cloud computing will accelerate throughout the forecast period, capturing 25% of IT spending growth in 2012 and nearly a third of growth the following year. IDC's Cloud Computing Conference 2009 will be held across 8 major cities in Asia/Pacific during March and April 09, focusing on the key theme – Preparing for the Next 20 Years of IT. For more information about the conference, visit</p>
<p>About IDC
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For more than 43 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting or</p>
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