Cloud Computing Forecast Mostly Sunny

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IDC released a study today that estimates the server market for public and private clouds was roughly $8 billion last year.  IDC sizes the worldwide server market at $43 billion in 2009.  In other words almost 20% of servers purchased last year were for cloud computing deployments.  This is up from almost nothing three years ago.  IDC also predicts that the market for cloud hardware will increase by a little over 50% to $12.6 billion in 2014.  Obviously, revenue produced by these servers for cloud computing service providers like Amazon, Microsoft Azure and MaximumASP will be several orders of magnitude larger.  However server growth is a reasonable proxy for services growth.  Based on the triple digit annual growth rates in cloud computing services many companies have experienced over the last two years, I will be surprised and disappointed if the cloud services market only grows another 50% by 2014.

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