Cloud computing has quickly changed how companies of all sizes and industries operate. Instead of spending more time and money managing on-site systems, more firms are migrating critical applications to hosted environments. Cloud-based ERP and cloud-based CRM apps are given new life in the cloud. Looking ahead to 2013, the solution is expected to continue its meteoric rise throughout the IT industry.
Market research firm IDC recently indicated that cloud computing and mobile technology will fuel the IT industry’s move toward the 3rd Platform, which is founded on big data analytics, social networking, cloud and mobile technologies.
Frank Gens, IDC’s senior vice president and chief analyst, said that 3rd Platforms will be responsible for approximately 90 percent of annual IT growth between 2013 and 2020.
“Companies that are not putting 80 percent or more of their competitive energy into this new market will be trapped in the legacy portion of the market, growing even slower than global GDP,” Gens said.
Overall, IDC expects global IT budgets to surpass $2.1 trillion in 2013, expanding nearly 6 percent from 2012.
Cloud computing also driving app revenue
Cloud computing is reshaping much of the IT landscape, especially the enterprise applications market. Research firm Gartner revealed earlier this year that global spending for enterprise apps will exceed $120 billion in 2012, expanding 4.5 percent from 2011.
“Spending in 2012 is anticipated to focus on industry-specific applications; upgrades to established, mission-critical software; integrating and securing established systems and infrastructure; and Software-as-a-Service deployments representing extensions to, or replacement of, existing applications and new solutions,” Gartner Research Vice President Tom Eid said.
Eid also added that more companies worldwide are implementing cloud-based solutions because of budgetary constraints. As a result, SaaS and cloud services will account for 15 percent of all enterprise application budgets by 2015.
One of the benefits of cloud computing and ERP applications is the quick return on investment. A survey conducted by TEKsystems and the Loyalty Research Group found that roughly 50 percent of respondents said both the cloud and ERP offers a ROI of less than a year.
Cloud computing may still be a newer technology in many respects, but the IT industry appears to be relying on the solution more than ever.