Consumer Use of Cloud Computing Set to Grow: Research

A new study from ABI Research titled, "Consumer Cloud Computing," predicts that revenue from consumer use of cloud-based backup/storage sites will jump from almost $75 million in 2009 to more than $372 million in 2015 - a CAGR of 27.89 percent.

According to ABI Research (News - Alert) practice director Larry Fisher, "The consumer value proposition for many Cloud Computing applications is simple; they're free. Most of the 1000+ US consumers responding to a 2010 ABI Research survey said they were hesitant to pay anything for use of a cloud-based service site."

The second biggest advantage of using a cloud-based application, after cost-effectiveness, is ubiquity: it allows users to access content from any Internet-connected computer.

According to ABI Research, only 11.6 percent of the U.S. consumer market for online backup/storage services was paid for in 2009. Most of cloud-based backup and storage services were either entirely free or free at the entry level.

In addition, the research found that almost 143 million consumers used the free or low-cost applications that reside in the Internet cloud in 2009, a number that is slated to grow to nearly 160.6 million by the end of 2015.

The market research firm, however, predicts that as more and more netbooks replace or supplement consumer laptops and other mobile Internet devices, the paid portion of the sector will grow.

Adoption of cloud computing is expected to increase also because of its increasing popularity as well as because of disasters that result in utility service disruptions.

"Many companies will provide free access to their web-based applications to consumers in the hope that they'll be sufficiently impressed to bring their enthusiasm for these applications to the businesses for which they work. Commercial pricing is then based on the number of users and the amount of storage used," Fisher said.