SiliconBeat

Over the next five year, spending on cloud-computing services is expected to “grow almost threefold, reaching $42 billion by 2012 and accounting for 9% or revenues in five key market segments, according to a release Monday from market-research firm IDC. ” More importantly, spending on cloud computing will accelerate throughout the forecast period, capturing 25% of IT spending growth in 2012 and nearly a third of growth the following year.”

One of the trends IDC says will accelerate the adoption of Internet-centric computing, which employs an “online delivery and consumption models for business and consumer services”, is the “current financial crisis.”

“The cloud model offers a much cheaper way for businesses to acquire and use IT - in an economic downturn, the appeal of that cost advantage will be greatly magnified. This advantage is especially important for small and medium businesses, a sector that will be key target in any plan for recovery.”

Three market forces are helping drive  the shift toward cloud computing, according to IDC:

• the search for growth (and revenues) in important new segments, including emerging markets like Brazil, Russia, India and China (BRIC) as well as the small and medium business sector;
• the shortcomings of traditional approaches in capturing the growth in these increasingly important markets;
• and competitive pressures from new players with little to lose and everything to gain from pushing the new model.