Recent research conducted in the IT field has revealed a trend for cloud-based investments – upward. According to data collected in a recent survey, the market value of cloud computing for SMBs could reach upwards of $8.6 billion by the end of 2011 and may hit $13 billion in the next few years. The survey found that many small businesses were considering a move to the cloud in the next year and that those moves alone would account for $4.9 billion, almost half of an entire year’s worth of investing dollars. The market itself is changing as more and more technology fills the gap between the virtual and the cloud environments and smaller companies become aware of the benefits that cloud-based services can offer.
In large part, the move by smaller companies to virtual server hosting comes as they see the benefits that bigger companies are receiving and begin to find literature and articles that show how the technology can be adapted to their needs. As companies come to understand the nature of virtual machines and how they can be altered for use by any size of business, they often begin to trend away from physical server space to at least a minor investment in the virtual side of the equation. This slow movement away from the traditional in a broad sense means a great deal of IT dollars flowing toward virtual infrastructure and away from physical servers.
While there are still challenges to overcome – backups, I/O and capacity issues to name a few – the broad appeal of the VPS industry is becoming clearer to businesses of every time and is contributing to an increase in the overall spending by SMBs in this new market.