By: Dylan Sikes - AllPennyStocks.com News

Tuesday, May 24, 2016

According to International Data Corporation (IDC), total spending on cloud IT infrastructure grew by 24.1% to reach around $32.6 billion in 2015. More importantly, IDC expects cloud IT infrastructure spending to grow at a compound annual growth rate (CAGR) of 15.1% and reach $53.1 billion 2019. By 2019, IDC expects cloud IT infrastructure spending to account for 46% of the total spending on enterprise IT infrastructure. Natalya Yezhkova, Research Director of Storage Systems, said that numerous IDC surveys indicate growing interest among enterprise customers to cloud deployments across multiple IT domains. Yezhkova further said that end users often cite the agility of IT infrastructure and economic reasons as drivers for cloud adoption, but IDC also expects that the proliferation of next generation applications born and run in the cloud will fuel its further growth.

In a separate report, market research firm Gartner notes that the worldwide public cloud services market is expected to grow 16.5% in 2016 to reach $204 billion. The market totaled $175 billion in 2015, according to Gartner. The research firm expects the highest growth to come from cloud system infrastructure services, which is forecasted to grow 38.4% in 2016. Gartner expects cloud advertising, which is the largest segment of the global cloud services market, to grow 13.6% in 2016 to reach $90.3 billion.

The robust outlook for cloud computing augurs well for InterCloud Systems Inc. (NASDAQ:ICLD), a U.S.-based leading provider of cloud networking orchestration and automation, for Software Defined Networking (SDN) and Network Function Virtualization (NFV) cloud environments to the telecommunications service provider (carrier) and corporate enterprise markets through cloud solutions and professional services. ICLD’s cloud solutions offer enterprise and service-provider customers the opportunity to adopt an operational expense model by outsourcing cloud deployment and management to the company rather than the capital expense model that has dominated in recent decades in IT infrastructure management.

This morning, ICLD announced that it was recently awarded more than $3.2 million in professional service contracts to support next generation Wi-Fi and DAS network deployments from existing and new clients. Mark Munro, CEO at InterCloud Systems, said that the company continues to build upon its backlog with significant new business. Munro said that while the company develops its cloud portfolio of IT services and products based around software defined networks (“SDN”) and network function virtualization (“NFV”), its legacy professional services segments continues to grow as its existing customers seek network upgrades and expansions.

Shares of ICLD have been in a long term downtrend however recently seem to be leveling off around the $1.00 level. With further positive developments from the Company, the long share price bleed may be close to coming to an end.

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