By end of the year, IDC projects public cloud spending will account for 68.2 percent of total IT equipment spending, growing at an annual rate of 36.9 percent.
Original source: Private cloud spending is increasing, not decreasing
“It predicts that global SMB IT spend – defined as firms with between one and 999 employees – could reach $597 billion this year, equating to an average of $700 per full-time employees and just over $8,000 per SMB business.”
We spent part of 2012 and all of 2013 building a private cloud in Virginia, Washington, and mostly Texas. This was a big bet with over $4 million in capital lease obligations on the line, and the good news is that it’s starting to pay off. On a cash basis, we spent $6.2 million at Amazon Web Services, and a mere $2.8 million on our own data centers. The business impact is profound. We’re spending less and have improved reliability and efficiency. Our gross profit margin had eroded to ~64%, and as of December, it’s approaching 74%. We’re shooting for 80 %, and I know we’ll get there in 2014.
About $51,000/month on AWS for those who like to track these things by month.