PRISM Projected To Cost U.S. Cloud Computing Industry $35B
The Information Technology and Innovation Foundation (ITIF), a Washington, D.C.-based think tank published How Much Will PRISM Cost the U.S. Cloud Computing Industry? (free to download, no opt-in) on August 5th. The report highlights how the disclosures involving PRISM quickly are turning into a catalyst that rival countries’ cloud providers are using for their competitive advantage. PRISM has also fueled protectionism throughout European countries, with the report citing Germany’s response in detail. Jörg-Uwe Hahn, a German Justice Minister called for a boycott of U.S. companies in response to PRISM.
Key take-aways from the report are summarized here:
- Of the $13.5B in investments that cloud computing service providers made in 2011, $5.6B or 41.5%, came from companies outside North America.
- Global spending on cloud computing is expected to grow by as much as 100% between 2012 and 2016, while the global IT market will grow only 3% in the same period according to the report.
- The global enterprise public cloud computing market will be a $207B industry by 2016 according to sources cited in the report. The following graphic illustrates how non-U.S. markets are projected to grow through 2016.
- The ITIF completed two forecast scenarios as part of their methodology, the first assuming 10% reduction in foreign market share to European and Asian competitors, and no loss of current projected market share domestically. The second forecast scenario assumes 20% reduction in foreign market share, and constant market share growth domestically. The table below summarizes their findings.
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