Survey: Cloud-related technologies driving overall industry growth

In 2010, the technology industry was able to overcome economic fears and slow growth to gradually gain momentum that could lead to significant expansion in 2011. According to a recent survey from KPMG, industry executives expect the sector to grow in the next year because businesses are increasing their IT budgets and beginning to work on new projects.

KPMG's survey found cloud computing, mobile technologies, virtualization and advanced analytics are fueling the potential growth in 2011. Each of these technologies are related to one-another, and experts expect the cloud and mobile to grow the fastest, experiencing as much as 10 percent expansion within the next two years.

Gary Matuszak, global chair for the information, communication and entertainment practice at KPMG, said experts are optimistic about the coming year. Business leaders are beginning to evaluate 2010 and anticipate substantial growth over 2009. Furthermore, executives expect the industry's expansion to continue into 2011, as IT could grow at an even faster rate than in 2010.

"Almost nine out of 10 executives said they expect business conditions in the technology sector to improve in 2011, including stronger revenue," said Matuszak.

A recent report from Forbes echoes assertions made by those surveyed in KPMG's poll, saying cloud computing will grow quickly in 2011, improving dynamics for the IT industry as a whole. According to the report, all four aspects of cloud computing experienced growth beyond expectation in 2010. Overall, the expansion can be attributed to businesses realizing many of their predispositions about the cloud were incorrect.

According to Forbes' report, many believed the cloud was only for SMBs prior to 2010. Dissenters also considered the cloud as limited based on geography and industry-type, using these beliefs to claim few would adopt the cloud cloud. They were proven wrong, as cloud options were developed to meet a diverse range of needs and impact businesses on almost every level.

In 2011, the report anticipates even more pervasive cloud computing deployments. For example, the report said the cloud will replace traditional models of software deployment and testing, taking the disk out of the enterprise. New developments in cloud technologies are outpacing on-premise hardware and software advances, making the cloud more affordable and easier to maintain. As a result, the report said cloud deployments will be used instead of traditional on-premise systems in the new year.

Forbes' report also expects private clouds to lead to more public cloud users in the new year. Many businesses have deployed private clouds in an effort to capitalize on the technology without taking the risks associated with moving IT off-premise. However, as cloud-specific security, reliability and compliance systems develop in the new year, companies will likely depend more on private clouds. The report also expects private clouds to give way to public because CIOs often use the internal cloud infrastructure as a stepping stone to public clouds.

Private clouds are also being deployed as a backup system to support public cloud subscriptions. According to Forbes, companies are holding out for security improvements, using private clouds to provide a layer of data redundancy and protection in case a cloud provider's systems are hacked. In 2011, new advances in security could negate this necessity, but cautious businesses are adding the layer of protection to their cloud options.

Overall, the report said SaaS systems will create new opportunities for innovation in the enterprise. Businesses can use SaaS to maintain the highest standards for software within their operations, allowing them to constantly update their systems when new advancements are made. The cloud will also allow developers to increasingly reach advanced customers willing to keep pace with state-of-the-art technologies.