Skip to main content

Increased Spending on Public Cloud Computing Services


This week, the world's financial markets have been negatively impacted by continued concerns about the global economic outlook. There has been little good news about the economy lately, particularly regarding the U.S. jobs forecast.

That said, enterprise related IT spending has apparently been one positive forward-looking market indicator -- particularly the current and planned use of managed cloud services.

According to the latest market study by In-Stat, enterprise business spending on IT and telecom services -- which include cloud computing, wireless, wireline voice, wireline data, and business IP/VoIP -- will move in a positive direction in 2011, increasing by healthy 6 percent.

"There will be positive growth across all 20 verticals with education and healthcare & social services leading the surge with growth of 10 percent and 9 percent respectively,” says Greg Potter, analyst at in-Stat.

These forecast increases in spending are across all product groups except wireline voice, which will decline by about half a percent.

In-Stat's latest market study findings include:
  • Enterprise spending on public cloud computing services is set to expand 139% from 2010 to 2011.
  • Enterprise spending on wireless data is set to approach $17 billion in 2015.
  • Enterprise spending in the healthcare sector on wireline data will approach 2 billion in 2014.
  • Enterprise spending on wireline voice will remain flat, with traditional TDM services continuing their decline, only reaching $3.4 billion in 2011.

Popular posts from this blog

Forward-Thinking Leaders Adopt Generative AI

Artificial Intelligence (AI) tools evolved and the inevitable outcome has arrived. The emerging Generative AI market demand has rapidly grown from initial hype and pilots to full-blown strategic implementation. The Wharton AI Report for 2024 reveals a nuanced picture of how the leading firms integrate this groundbreaking business technology into their operational frameworks. Key Insights and Market Dynamics The most striking statistic is the surge in generative AI adoption: 72 percent of decision-makers now report using generative AI at least once a week, compared to just 37 percent in 2023. This represents a dramatic shift from curiosity to active experimentation across multiple business functions. Spending has matched this enthusiasm, with generative AI budgets increasing by 130 percent since 2023. However, the growth trajectory is showing signs of stabilization. While 72 percent of respondents plan to increase AI budgets in the next year, a majority (57 percent) anticipate more mod...