Cloud Industry News

TIA Report: Cloud & Data Center Spending will Jump Nearly 50 Percent Through 2017

October 22, 2014
TIA Report: Cloud & Data Center Spending will Jump Nearly 50 Percent Through 2017

Cloud Computing Being Driven by Increasing Demand for Data in the Enterprise, Growth in IoT & Mobile Markets, and Federal Cloud Priorities
TIA logoARLINGTON, VA (October 22, 2014) – The Telecommunications Industry Association (TIA), the leading association representing the manufacturers and suppliers of high tech communications networks, released an in-depth report showing that cloud computing will be one of the fastest-growing segments in telecommunications through at least 2017. The Cloud Computing & Data Centers Report is part of a new series of reports providing detailed study of key segments of TIA’s 2014 ICT Market Review & Forecast (MR&F) – the industry’s most comprehensive data review and analysis.
The Cloud & Data Centers Report predicts a nearly 50 percent increase in spending on cloud services and data center construction over the next four years as the demand for data continues to grow. According to the report, business and consumer spending on cloud computing will increase from nearly $67.8 billion this year to $107 billion in 2017, while spending on data center construction will rise 26 percent, from $23.5 billion in 2014 to $29.7 billion in 2017. The report forecasts continued double-digit spending growth in data center construction in 2014 and 2015, followed by single-digit gains in 2016 and 2017.
TIA President Grant Seiffert commented, “Data is fueling unprecedented growth and technological change, and it’s clear from our report that this trend is not ending any time soon. As data becomes increasingly integral to business operations, both large and small U.S. companies will spend heavily on cloud services and data center construction.  At the same time, the Internet of Things and continued smartphone demand will exponentially expand the amount of data available.  Our research makes it clear that it’s all about data – building the infrastructure to manage, store and protect it.”
The TIA analysis identifies several factors and trends that will fuel continued growth in the cloud and data center sector, including:

  • Large companies will increasingly move to the cloud as their data needs grow.

While small-to-medium-sized businesses have been a major driver of cloud services spending, accounting for 41.3 percent of the total U.S. market in 2013, the TIA Cloud Computing Report finds that large companies will be the chief driver of cloud computing services spending over the next four years – with enterprise cloud spending increasing from $40 billion in 2014 to $64.5 billion in 2017.

  • Explosive growth in the Internet of Things and ongoing increases in mobile smart devices will contribute to increased cloud spending.

According to the TIA report, U.S. spending on IoT services rose more than 60 percent in 2013 and is projected to more than triple by 2017.

  • Following its recent shift to the Cloud First Policy, the federal government will be a major contributor to the growth of cloud computing.

The report notes that under the Cloud First Policy, where federal agencies must look to cloud options where practicable, federal IT spending decreased from $81 billion in 2010 to $75 billion in 2013. Over the previous decade, prior to the adoption of Cloud First, federal IT spending increased at a 6 percent annual rate. The efficiency created by cloud computing will drive growing government investment.
Copies of TIA’s new cloud computing report are available for members of the media.  To request a copy, please contact Farrah Kim at or (202) 568-8986.
The Cloud & Data Centers Report is the first in a series of in-depth reports analyzing ICT industry sectors and key trends. Reports on cybersecurity and privacy, the connected car and robotics will follow later this year. Copies of the full 2014 MR&F are also available to members of the media.
As data center construction and utilization becomes an even greater focus for the industry, TIA is also holding a special Data Center Workshop on November 11-12 to address critical issues facing the entire data center value chain – from cloud service providers and equipment vendors to end-users involved in enterprise, government, finance, and more. Members of the media are invited to attend.
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