Cloud will generate trillions by 2025: McKinsey

By Andrew Birmingham on Jun 13, 2013 9:21 AM
Filed under Cloud

Huge wins for consumers, but significant impediments remain.

Cloud computing could generate as much as $US6.2 trillion globally in economic value over the next 12 years driven by a doubling in the internet population worldwide and the major shift in enterprise IT towards the cloud.  
Most of this value will be captured by consumers via cheaper and better services, while enterprise IT will benefit by as much as $US700 billion in productivity improvements. 
These are among the key findings in a study by management consultants McKinsey and Company into disruptive technologies.
The author's note,  however, key impediments remain including network capacity, which they describe a critical enabler.
Consumer and enterprise trust remains a significant hurdle, as do regulatory frame works which currently place jurisdictional constraints upon companies.
But just as important is cultural resistance from with IT departments, “cloud deployment represents a significant shift in IT management practices, from in-house to lower cost outsourced solutions, raising concerns about loss of control.”
The study also notes that cloud will require new budget disciplines and skill sets.
“Another factor is the complexity of migrating enterprise IT systems with multiple platforms, network protocols and programming environments into the cloud.”
Cloud will also level the playing field for smaller companies, ”Cloud computing lets SME’s avoid tying up capital in IT and frees them from IT infrastructure management and demand planning, giving them the ability to compete more effectively with big companies.”
Follow us on Facebook and Twitter

Copyright © CRN Australia. All rights reserved.


Cloud will generate trillions by 2025: McKinsey
Top Stories
Harvey Norman acquires Mac1 from Dick Smith
Apple reseller changes hands again.
David Shein sells Sydney waterfront houses in $70m deal: report
ComTech, Dimension Data veteran involved in Vaucluse mega-sale.
Sign up to receive CRN email bulletins
Meeting which tech founder would leave you most starstruck?

Latest Comments
CRN Magazine

Issue: 347 | March 2016

CRN Magazine looks in-depth at the emerging issues and developments for the channel, and provides insight, analysis and strategic information to help resellers better run their businesses.