Impending Economic Downturn Will Likely Increase Cloud Adoption And Spending

Last week, the public received its first look at the earnings reports of  various  cloud  providers since the recession bells started ringing. Despite lower than expected revenues, executives remain optimistic about the future of cloud computing.

Many observers suspect that given the current economic environment, enterprises are likely holding off on making significant investments in technology infrastructure as they wait to see how the economy fares to better gauge demand for their own service offerings. With the cost of acquiring capital rising, enterprises are focused on preserving cash and placing big bets on technology with no guarantee of demand may not be received well by executives as market caps remain depressed.