KPMG Paints Growth Picture For Cloud Computing

KPMG International just completed a new survey showing that cloud revenue will increase dramatically over the next two years.  KPMG found that businesses are started moving apps to the cloud.  This will spur tremendous growth in cloud technology revenue created from cloud services like cloud businesses, data analytics, content management, customer care, operations and manufacturing.  The industry is expected to double in volume by the end of 2014.

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KPMG International found that more companies using cloud computing are storing their protected information on remote computers.  Businesses that follow this trend are Google, Salesforce, Amazon and Microsoft and many others. Reduced costs and decreased scalability of IT resources is not only recognized by these large corporations but also by SMEs.

External Storage Helps Encourage Security

Gradually, businesses have overcome their reservations about the external storage of proprietary information and the sharing of IT resources.  60% of surveyed businesses say cost reduction is the primary reason for moving to the cloud.  However, 40% of providers said proving cost savings remains their biggest challenge.

Cloud computing providers told KPMG International that their three biggest challenges were providing evidence of cost savings (38%), developing attractive usage-driven pricing (31%) and showing prospective clients realistic business cases that justify the conversion to cloud computing (27%).

Still A New Technology

Cloud computing is still in its infancy. But, the technology is at the pivotal point in the ever-expanding cloud ecosystem.  The development of specific cloud apps as greatly helped overcome concerns about security.  Suddenly, faced with an industry expected set to double the size of the industry by the end of 2014, cloud computer hosts have to raise their game to provide new levels of “scale, capacity and capability.”

KPMG states that early users of cloud computing found discrepancies between the projected and realized cost savings.  As hosts have become experienced, the discrepancies have nearly been eliminated.  Cloud computing firms have green that their sales teams have had to adjust earlier projections, but real savings are being captured by cloud users.

As companies have moved certain data to remote computers, software-as-a-service (SaaS) applications have become the most in-demand cloud service.  That trend is expected to last through 2014.  Platform-as-a-service (PaaS) and infrastructure-as-a-service (IaaS) are also expected to increase during the same time frame.

KPMG international reports that the anticipated migration of core systems and critical infrastructure to the cloud will be complex undertakings during the next two years.  Users will require strategic direction and guidance from providers. More in-demand cloud services are expected to be developed during these conversions.

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