Widespread use of cloud computing will trigger demand for server hardware

Wednesday, August 04, 2010

A report recently conducted by IDC projects that the server hardware industry will experience substantial growth in the years to come, due to the emerging importance of cloud computing.

The report predicts a 23 percent growth in server hardware revenue for public cloud computing vendors over a time period of five years, increasing from $582 million in 2009 to $718 million in 2014.

Private cloud computing revenue, on the other hand, is expected to grow from $2.6 billion to $5.7 billion over the same period of time.

IDC research analyst Kathrine Broderick believes that many IT decision makers are seriously considering cloud computing as a way to dramatically simplify their sprawling virtual and physical infrastructure. "However, there is still some lingering apprehension over issues like integration, availability, security and costs," she added.

How these concerns are approached will decide how the cloud computing business develops, according to Broderick.

A previous survey performed by Brocade estimated that 60 percent of European businesses will adopt the cloud computing model within the next two years.