If one was to believe the marketers, Cloud computing is the biggest thing in Enterprise IT by some degree. Yet the actual spend figures don't bear this out, with Cloud spend for Enterprises only accounting for around 3.5% globally over the last year. It is growing exponentially however - in this interview with Oracle's Mark Hurd it's apparent their Cloud solutions' growth is far outstripping that of 'traditional IT'. What's clear is that in more mature tech markets Enterprises face a bigger struggle to make the shift to the Cloud due to legacy IT. The challenge for tech behemoths such as Oracle is to able to provide as smooth a transition as possible for their customers, while simultaneously cannibalising the very solutions that got them here in the first place.
The panic that cloud is causing within the traditional IT industry at first glance looks hugely out of proportion to the current size of both sectors. In total the cloud market globally won’t even reach $35bn this year. When compared with the enterprise IT market for compute, storage, network, database, middleware, applications and everything else it remains small. The total enterprise and consumer IT market is worth around $2 trillion dollars globally and is currently split around 50/50. However the growth for the mature enterprise IT market is relatively flat with CAGR where it exists in low single digits.