Green Shoots and Cloud Hosting
Figures suggest that 2011 promises significant growth in the cloud hosting industry
Posted by Killian McAleese, 4th March 2011
Rackspace Hosting reported on Thursday that the fourth quarter of 2010 saw sales of network services at their strongest point since the beginning of the international financial crisis in 2008.
According to Rackspace's Jason Morton, “the tech and IT sectors have recovered from the downturn and are now gaining momentum for the future.”
The by now well rehearsed economic vicissitudes of the past three years naturally led to a reluctance amongst businesses to update their IT infrastructure. However, the International Data Corporation (IDC) reported that by the end of 2010, equipment sales showed 15% growth on the figure from late 2009. Rackspace's own net revenue increased by a staggering 26.7% in the same period.
Reacting to the figures, President and CEO Lanham Napier was pleased with the results and also claimed that the company had “even more ambitious plans for 2011 that are designed to position us to succeed well in the future.”
Driving Down Costs
But this upward trend is not the only factor which has been leading the hosting industry through the recession. Morton explains that during the recession many cautious and cash-strapped businesses “opted for server optimising new technologies such as virtualisation and cloud computing as a way to drive down costs in the data centre.”
The hosting industry is now at a crucial juncture at which the market exposure gained during the crisis and 2011's 'green shoots' could well combine to see a near exponential increase in business for the hosting community.
Open Plus and Rackspace
For more information on Open Plus services and Rackspace, see our Rackspace Consulting partner page. For more about Open Plus partner technologies, see our Open-Source IT Solutions page.
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