In a new report, Gartner predicts that cloud computing expenditures will grow 19 percent this year to top $109 billion. By 2016, the market could be worth $207 billion. However, the IT industry as a whole is growing at just 3 percent per year, meaning that cloud computing is eating into traditional hardware and software expenditures.
According to Gartner, infrastructure as a service (IaaS) spending will grow 41 percent this year, while platform as a service (PaaS) will climb 26.6 percent and software as a service (SaaS) will climb 17.4 percent. “Cloud services within the broader IT spending market are still small, but the growth rate looks promising,” said Gartner’s Ed Anderson.