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New Cloud Computing Report Shows Redshift Effect

Big Growth Scene on Eve of Fifth Cloud Expo in New York

Unisys Session at Cloud Expo

I've been involved with, for better worse, emerging markets for my entire career in the technology business. I edited a "portable" computing magazine in the early 80s. Was on the job during "The Year of the LAN" in 1984, and shortly after that, was editing a UNIX magazine in the age of "bang" email addresses. Covered CD-ROM in the late 80s, computer games in the early 90s, client/server before Jonathan Schwartz had a ponytail. Web services, SOA, open source. Got JavaOne off the ground. Heck, I was even country, when country wasn't cool.

The joke everyone told about all of those emerging technologies was that we were often part of "a zero-billion-dollar market."

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Well, joke no more, because the great thing about cloud computing is that it's not an emerging technology, but rather, an emerging way of doing business, and it already commands several billions of dollars of market share. Now, according to a new report just issued out of Dublin, it will be a $100-billion-market by 2016. This type of growth, viewed from where we are standing now, will have a serious redshift aspect to it.

The tricky stuff is to determine how much new IT business will be created by Cloud Computing, but in any case, there are few, if any, technology vendors with no cloud strategy today. And even with reports of significant minorities of IT purchasers having serious concerns about cloud computing, the reality is that this term was not on the radar screen five years ago, and all technology buyers are studying it, if not yet endorsing it.

The Dublin report comes from Wintergreen Research, and has been released on the eve of the Fifth International Cloud Expo, which will be held at the Javits Center in New York.

Here are some outtakes:

* "Cloud computing markets totaling $20.3 billion in 2009 are anticipated to reach $100.4 billion by 2016."

* "The fundamental aspect of cloud applications implementation relates to flexibility. The ability to be responsive to changing market conditions is central to the modern IT management task. The desire for systems that support flexibility is anticipated to spur rapid growth of cloud computing"

* "The ability to deploy virtual application images on any platform at any time has increased significantly. Business software as a service SaaS applications and cloud computing models have matured and adoption has become an issue for every IT department."

* The major management objectives for this critical area of applications implementation include improving service-oriented architecture (SOA) adoption, increasing Software Development Life Cycle (SDLC) efficiency, improving cost management, and reducing ineffective spending.

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"Cloud Expo was announced on February 24, 2007, the day the term ‘cloud computing' was coined," said Fuat Kircaali, founder and CEO of SYS-CON Events. "Cloud has become synonymous with ‘computing' and ‘software' in two short years, and this event has become the new PC Expo, Comdex, and InternetWorld of our decade. By 2012, more than 50,000 delegates per year will participate in the Cloud Expo."

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More Stories By Roger Strukhoff

Roger Strukhoff (@IoT2040) is Executive Director of the Tau Institute for Global ICT Research, with offices in Illinois and Manila. He is Conference Chair of @CloudExpo & @ThingsExpo, and Editor of SYS-CON Media's CloudComputing BigData & IoT Journals. He holds a BA from Knox College & conducted MBA studies at CSU-East Bay.

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