— Blog

IHS: Enterprise cloud spending to hit $235B by 2017

John Freimuth
May 13, 2014

Earlier this week, Les Williams wrote a post about how the massive growth of the cloud over the coming years is going to increase the number of data centers needed around the world.

Les’ post gave an insightful look into the increase in cloud traffic that’s expected over the next few years, but it didn’t say much about spending. How much, then, is cloud spending expected to increase in the near future?

Well, according to a new report published by IHS, enterprises will spend more than US$235 billion on cloud architecture and services by 2017—a 35 percent gain from the US$174 billion projected to be spent this year in that same area. Back in 2011, enterprise cloud spending fell far short of the US$100 billion mark, a sign of quickly changing times.

In a quote cited by ZDNet, Jagdish Rebello, senior director for information technology at IHS, noted that “Enterprises today are trying to create faster, more efficient I.T. environments to ensure more responsive, agile and successful businesses. In these cloud-based settings, enterprises also want to integrate the deep analytical power of big data, which will give them competitive advantages through insights about present and prospective customers.”

The cloud is enabling enterprises to create those more agile I.T. environments, which, as you might have guessed from Les’ post, where he noted that global data center traffic from the cloud is expected to hit 5.3 zetabytes in 2017, is causing a huge uptick in the amount of cloud traffic worldwide. And as this new IHS report shows, spending in the cloud is only going to continue to increase through 2017 along with data usage.

The good news for enterprises just hearing about this news is that as time goes on and competition in the cloud increases, the benefits of the cloud—efficiency, flexibility, etc.—should only continue to become stronger. Any investments in the cloud through this time of growth should continue to benefit companies as reliance on the cloud grows.

As enterprise reliance—and spending—on the cloud continue to grow, the importance of being on the cloud is only going to grow along with it. And here at Telx, our Cloud and Connectivity Services are designed to help your business grow and stay in production without breaking the bank.

If you’d like to learn more about our Cloud and Connectivity offerings, feel free to reach out to us via the contact page of our site, or by Facebook or Twitter. We’d love to hear from you.

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