5. Cloud Computing Grows 6.3% To $1.6 Trillion

Our 5^th prediction is that Cloud Computing will grow by 6.3% to reach $1.6T.
2013 was not a great year for the area, with growth at just 3.4%. While it remains a countervailing business, it is becoming sidelined as a subject, partially as a victim of its own success. Cloud Computing is still an important subject – especially for those who choose to buy in – rather than build – their applications: Financial Services companies in Holland were allowed by their regulator to use Cloud services for the first time in 2013: we expect many other industry sectors and countries to follow. Our general view is that IT Services will become Cloud services before becoming just ‘services’. After all eBay is just an auction house and Google, an advertiser – there It element will become increasingly irrelevant over time.
In 2014 there will be a heightened clash as large suppliers roll out SAP, Oracle, Hadoop and other SaaS in direct competition with their channel partners, although we expect them to concentrate for the most part on very large Enterprise customers.
We look at the historical development of Cloud Computing, vendor statements on growth and size wherever possible and talk to numerous users about their adoption intentions to produce our forecast.
Further Reading: Our Cloud Computing definitions and methodology
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