Cloud computing to grow 26% through 2015 - IBM

Tuesday, May 31, 2011

Cloud computing-related offerings and services will see 26% growth worldwide through 2015, Dee Fleming, IBM's (NYSE: IBM) Latin America lab and cloud centers director, said at the Latin America Cloud Press Tour.

Although IBM does not provide regional breakdowns, Latin America is a constant and growing market for the company, she said.

According to Alejandro Zarich, IBM's marketing and communications director for Latin America, the company expects to generate nearly US$7bn in cloud-related revenues alone through 2015. And IBM has invested more than US$3bn during the last three years in acquiring IT companies to increase cloud initiatives.

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"Cloud is a way to adapt to the accelerating business challenges, and it offers new services. By understanding the changes in technology, [the cloud can] address business problems. Those CEOs who can connect business changes with technologies have more capacity to embrace the cloud," Fleming said.

According to the executive, for every dollar that a company invests, 70 cents go to maintaining current IT infrastructure and 30 cents to adding new capabilities. But in using the cloud, companies can save some 30-60% in costs on infrastructure, testing and software as a service (SaaS).

"Companies want a quick return on investment. With the cloud, companies - depending on requirements - can see a return on investments in a year," Fleming told BNamericas.

"Business leaders in particular believe that cloud-based delivery models will radically change service provision, and [these models will] drive spending on cloud investments."


Cloud adoption will depend on companies' needs and infrastructure, but not all workloads will move to the cloud, according to an IBM cloud computing study conducted in July 2009.

In terms of workloads, private cloud its better for data mining, security and business continuity and disaster recovery, as well as for developing and testing environments and transactional databases.

In turn, audio, video and web conferencing, as well as services such as help desk, desktop and infrastructure for training and demonstration, storage and data center network capacity, are more appropriate for the public cloud.

"According to our research, 64% of our clients prefer to adopt private cloud and a 30% prefer the public cloud," Fleming said.