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Small Companies Will Consume Most Public Cloud Computing Services by 2014

January 25, 2011 - News

More small companies are seeing value in cloud computing. To that point, public cloud computing revenue will soar more than 100 percent from 2010 to 2014, according to new research from In-Stat.

The increase is changing the IT infrastructure paradigm within businesses with one to four workers, and among firms with five to 99 employees. Those sectors will make up about 65 percent of the public cloud computing market in 2014, In-Stat said this week.

"Web hosting and data storage are the most obvious IT needs that can be addressed by public cloud services, such as Amazon Web Services’ S3 and EC2," said Greg Potter, In-Stat research analyst. "With the advent of Software-as-a-Service offerings such as Google Docs,, and Microsoft Live, many businesses are realizing that much of their IT needs can be fulfilled without the need for expensive networking equipment and high-end computers."

Mid-sized companies and enterprises, meanwhile, are more interested in hybrid and private cloud products because those have greater security assurances. But the public cloud is more cost-effective for businesses on stringent budgets; for example, the public cloud comes with demand-based payment models and scalable infrastructure, In-Stat noted.

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