Study: Cloud computing will grow 5x faster than traditional IT

As budgets remain tight, more small and mid-size businesses are turning to the cloud to cut costs.

By 2014, public IT cloud services are expected to earn $55.5 billion, according to a recent report by the International Data Corporation (IDC). In 2009, those same services earned $16 billion — that’s an annual growth rate of over 27%.

Although cloud computing is the fastest growing service in the industry, it will only represent 12% of total IT product spending in 2014. With uncertainty about the security, privacy and ownership of information on cloud systems, large companies and government entities are expected to continue using localized platforms.

The biggest push, the IDC notes, may come from small and medium-sized companies looking to trim their IT costs.