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Cloud Computing Share of Tech Wallet to Quadruple by 2020, Growing Nearly Six-Times Faster Through End of Decade Than Spend on Legacy Hardware and Software; According to Bain & Company StudyNEW YORK --(Business Wire)-- With strong tailwinds from high-growth companies and first-generation business-savvy CIOs, revenue from sales of cloud computing products and services are poised to surge from their current base of approximately $20 billion to nearly $150 billion by 2020, accounting for eight percent of all technology spend-this according to "The Five Faces of the Cloud" study released today by Bain & Company, the global business consulting firm. "Cloud computing is at the intersection of two very powerful trends that have been playing out for some time: greater use of capability sourcing across the business value chain and the shift from capital intensive computing models to variable-use ones," said Michael Heric, a Bain partner and lead author of the study. "Once financial and strategic value proves to be repeatable, cloud will become a standard part of the business toolkit." In Bain's survey of 494 North American CIO's and IT decision-makers, representing companies of all sizes across a wide range of industries, there is clear evidence that broad-based cloud adoption is underway. To date, just 10 percent of companies have driven nearly 50 percent of the market for cloud solutions. This is changing: over the next three years, nearly 65 percent of the approximately $20 billion in growth in this market will come from companies that make little or no use of cloud today. Other findings from Bain's CIO survey and in-depth interviews include:
"Cloud providers have thus far been largely focused on developing solutions for the earliest adopters," added Mr. Heric. "There is no guarantee that today's cloud leaders will remain on top. If they cannot broaden the appeal of their solutions to meet the needs of new cloud adopters, other providers will step in to fill the void." Editor's Note: To download a copy of "The Five Faces of the Cloud," go to http://www.bain.com/Images/BAIN_BRIEF_The_five_faces_of_the_cloud.pdf. To schedule an interview with Michael Heric, please contact Cheryl Krauss at email: [email protected] or +1 646-562-7863, or Frank Pinto at email: [email protected] or +1 917-309-1065. About Bain & Company, Inc. Bain & Company is the management consulting firm that the world's business leaders come to when they want results. Bain advises clients on issues of strategy, operations, technology, organization, and mergers and acquisitions, developing practical insights that clients act on and transferring capabilities that make change stick. The firm aligns its incentives with clients by linking its fees to their results. Bain clients have outperformed the stock market 4 to 1. Founded in 1973, Bain has 47 offices in 29 countries, and its deep expertise and client roster cross every industry and economic sector. For more information visit: www.bain.com. Follow us on Twitter (News - Alert) @BainAlerts.
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