How cloud computing delivers economy-wide financial benefits and carbon reductions
US cloud computing adoption forecast shows a big economic saving – $12.3 billion a year by 2020
Firms interviewed as part of this study confirm economic savings have been achieved from switching to a cloud based model. But what does this mean for the wider US economy? To understand the impact, we built a cloud computing adoption forecast model based on the interviews conducted.
It consisted of:
• An algorithm that forecasts the adoption of cloud computing by business customers.
• Assumptions about the rate of adoption of cloud computing in different industries and the maximum penetration rate of this solution (see appendix).
• Financial data for 2,65314 global firms
with annual revenues in the US above $1 billion.
Figure 1. Model derived percentage spend of US multi billion dollar revenue firms on IT deployment solutions 2011-2020.
2011 $7
2012 $10 2013 $13 2014 $19 2015 2016 2017 $39 2018 $45 2019 $49 2020 $54 0% 10% 20% 30%
Public Private Dedicated IT Values in $billion
40% 50% 60% $71 70% 80% $57 90% 100% $67 $62
$60 $63
$56 $68
IBM, Richard Lechner
$27 $33
$42 $49
$82 $74
$34 $25 $18
$107 $100 $92
$11 $111
“Not only can firms perform more rapid application development but a firm can also realize savings across the application lifecycle, moving costs from capex to opex.”
“Carbon reduction is one driver, but not the primary driver. The primary driver is time to market. Developers used to take 45 days to get new servers, but in our virtualized private cloud environment, it takes just a couple of minutes.”
Citigroup, Paul Stemmler
14. This is the total number of firms generating more than $1 billion of revenue in the US
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