This infographic from Yorkshire Cloud, explains why IT departments are investing more money into cloud-based software. In Forrester Research’s recent overview of the the subscription commerce market, Peter Sheldon emphasizes that we are living in an “era of cloud computing.”
For software vendors, it’s important to know that businesses continue to replace traditional on-premise legacy software with innovative cloud-based products. In 2010, just 14% of businesses utilized cloud computing. In 2014, that number will rise to 41%, and by 2020, the cloud computing industry will increase to over $240 billion.
As the infographic explains, this trend is based on current business problems with IT infrastructure such as downtime, flexibility and running costs as well as the benefits that accompany cloud computing in the areas of scalability, reduced costs and management.
We already know that the issue of cost is of lesser concern for cloud buyers. However, even if cloud products are cheaper in the long run, that fact won’t stop IT departments from increasing their budget. Sometimes, lower prices have the ability to encourage more spending. This is especially true when cloud products deliver better usability and reduces the time it takes to deploy and scale a solution. So, while the transition from on-premise to cloud won’t necessarily reduce the amount of IT expenditure, by 2014, XaaS products will replace 14% of budgetary spending.
Why are more more businesses moving to the cloud? – An infographic by the team at Yorkshire Cloud