Gartner predicts rise in low-cost cloud computing

News Article - Monday, 12 December 2011 13:09

Category: Hosting

IT analyst Gartner has predicted that low-cost cloud computing is set grow in popularity over the next three-to-five years. The firm believes that the transition will reset businesses' perceptions of pricing and value in the marketplace.

Gartner believes that IT infrastructure outsourcing revenues will be dramatically affected as a result. "The projected $1 trillion (£640 billion) IT services market is at the beginning of a phase of further disruption, similar to the one the low-cost airlines have brought in the transportation industry," the company claimed.

Businesses are also expected to begin abandoning desktop clients in favour of web-based enterprise email services. The shift is expected to be driven by the increased uptake of mobile devices - such as smartphones and tablets - and the ease with which employees adapt to browser technology as cutting-edge web apps become ubiquitous.

Gartner also believes that more than 50 per cent of the top-1,000 enterprises across the globe will store customer-sensitive data in the public cloud as security improves. However, cybercrime will increase by an estimated ten per cent per year as new cloud security vulnerabilities are exposed.

Recently, the Financial Times published a document that showed the European Commission is considering proposals to fine firms five per cent of their turnover for data security breaches.

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