Global cloud services revenue is expected to reach $148.8 billion by 2014, according to research firm Gartner.
The cloud computing market is expected to grow by 16.6 per cent to achieve revenues of $68.3 billion in 2010 and reach $148.8 billion by 2014 from $58.6 billion in 2009, Gartner said in a statement.
Cloud computing refers to a pay-per-use model of computing, where applications and software are accessed over the Internet and not owned by users. IT companies can save huge costs on these products, as they would not have to invest in purchasing them, resulting in reduced IT costs.
"We are seeing an acceleration of adoption of cloud computing and cloud services among enterprises. The scale of application deployments is growing; multi-thousand-seat deals are increasingly common," Gartner Research Vice-President Ben Pring said.
While the US had a 60 per cent share of the worldwide cloud services market in 2009, by 2014, it is expected to dilute to 50 per cent as other countries and regions begin to adopt cloud services in more-significant volumes, it said.
Western Europe is expected to account for 23.8 per cent of the cloud services market in 2010 and Japan will represent 10 per cent.
In 2014, the UK is forecast to account for 29 per cent of the market, while Japan will enjoy 12 per cent of cloud services revenue, it said.
The financial services and manufacturing industries are the largest adopters of cloud services, having got on the bandwagon early.
Communications and technology industries are also leveraging cloud computing in significant volumes and the public sector has begun to explore the potential of cloud services.
However, security, availability of service, vendor viability and maturity of technology remain some of the concerns.
