2014: US Businesses to Spend $14B on Cloud
New research has pinpointed that businesses in the USA will rapidly adopt cloud technology in 2014. This is big news for those who currently invest in cloud technologies such as the Cloud ETF or individual cloud stocks. While the large cloud providers such as IBM and Amazon will continue to see sustained growth, this influx of capital into the cloud community will help smaller cloud offerings rapidly scale up.
2014 is an exciting year for new cloud companies because the very technology that they embrace will also be the same technology that levels the playing field, thus allowing smaller outfits to compete alongside larger corporations. Since spending will surge, large companies will keep an eye on startups that enjoy early success. Larger companies typically try to gobble up smaller startups when they notice these companies gaining a larger share of the marketplace. The cloud has helped create the perfect storm for technology entrepreneurship, innovations and investment.
With $13B in new spending entering the US cloud economy, the numbers seem ripe for significant innovation. The best part about watching the American economy become cloud oriented is the new innovations that will spring up designed to make work and entertainment a more efficient process.
Traditional PC hardware sales will continue to plummet as it becomes more practical to host desktops and apps in the cloud. More niche businesses are beginning to realize this and as they run the numbers, they understand that investing in public, private or hybrid cloud infrastructures is the best way to reduce their overall IT overhead costs. Instead of buying refreshing new hardware and operating systems every couple of years, the cloud can automatically deploy applications and provide access to data on demand regardless of the existing hardware in place. This gives American companies the ability to work and collaborate anywhere without any special hardware or software setup. You should continue to see cloud spending accelerate in the American markets well into 2015 and 2016.
