A sunny outlook for cloud computing

New reports call for a sunny outlook for cloud computing - for both adoption rate and savings for businesses that invest in the technology. Business expenditures on the cloud are expected to triple between 2011 and 2017, and small and large organizations that fully use the cloud are already saving more than 15% on IT costs. Worldwide spending on cloud technology, which was at $78.2 billion in 2011, is expected to reach $172.4 billion this year, and $235.1 billion in 2017.(1) Businesses depend more on cloud computing today for several reasons: * They can rapidly deploy technology as needed with little or no upfront costs. * Recent explosive growth in web-connected mobile devices such as smartphones and tablets are also driving cloud use. It's critical that these devices have access to cloud storage because they are used more than ever for business. * Both small and large businesses are moving toward the cloud as they seek platforms that are scalable, dynamic, and available on-demand to their "on the go" workforces. Another recent study states that organizations that fully utilize cloud computing save more than 15% on IT spending.(2) Savings on IT operational spending were measured both "as percentage of revenue" and on a "per user basis." Companies using cloud computing realized savings on data center expenses and on IT personnel costs. Cloud computing gives businesses the ability to utilize the powerful and secure resources of a large offsite data center for their IT. Cloud service providers host applications and data for a predictable fixed monthly cost. Applications such as Voice-over-IP telephony (VoIP), video conferencing, email, and office productivity programs are available on demand, or "as-a-service." Users can gain access to these applications from virtually anywhere on the globe via a number of secure connection types. Some building owners and managers in the NY Metro area are "lighting up" their properties with high-speed fiber optic connections. These connections help meet higher tenant demand for increased bandwidth as they enter the cloud. Cloud-based backup solutions can provide business-saving data recovery in the event of a natural or man-made disaster. Almost half of all companies that cannot access their data within 24 hours after a major disaster go out of business. Companies that save on IT thanks to their cloud investments are reaping another benefit - their IT personnel now have a transformative effect on the workplace. These employees are spending less time maintaining in-house data centers and computer equipment. Instead, they can focus their energies on finding new ways to use technology to innovate and add value for their organization. 1 Cloud- Related Spending by Businesses to Triple from 2011 to 2017 - http://press.ihs.com/press-release/design-supply-chain/cloud-related-spending-businesses-triple-2011-2017 2 Cloud Users Spend Less, Spend Smarter on IT - http://www.computereconomics.com/article.cfm?id=1932 Layne Frank is director of sales for BBH Solutions, Inc., New York, N.Y.