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Report: Business IaaS spending to near $4 billion by 2014

Businesses are beginning to increase their investments in cloud computing and hosted solutions. In fact, a recent report from NPD In-Stat revealed organizations will spend more than $13 billion on these technologies in 2014, increasing from today's amount of less than $3 billion.

Companies will increase their investments on Software-as-a-Service solutions by more than 100 percent between 2010 and 2014, while Platform-as-a-Service spending will grow slightly faster, expanding to $460 million. However, it is Infrastructure-as-a-Service that will be one of the most popular technologies in the coming years, as organizations will spend nearly $4 billion on the technology by 2014, the report noted.

"Although spending across all sectors and size of business is projected to grow, there are some segments where growth will be staggering," said NPD In-Stat analyst Greg Potter. "The professional services and healthcare verticals will see the largest growth in spending on cloud computing services, growing over 124 percent between 2010 and 2014."

Many companies will increase their spending on IaaS because it allows them to reduce their total cost of ownership while allowing IT to shift their focus toward utilizing innovative applications and solutions within the network, experts believe.

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