Cloud could cut energy data center consumption 31% by 2020

According to a report by research firm Pike Research (Boulder, Colo., U.S.A.), the continued adoption of cloud computing will lead to a reduction of data center energy consumption of 31% from 2010 to 2020.  The energy-efficiency benefits of cloud computing are substantial, says the research firm, and growth in the market will have important implications for both energy consumption and greenhouse gas (GHG) emissions.

According to Pike Research, the rapid spread of cloud computing has enabled enterprises to outsource many information technology capabilities, including and especially data centers, leading to savings on manpower, money, and energy.

"Cloud computing revenue will grow strongly over the next decade, with a CAGR of almost 29%," says senior analyst Eric Woods. "But the reduction in energy consumption will be even more significant. Massive investments in new data center technologies and computing clouds are leading to unprecedented efficiencies."

Cloud computing is less expensive to operate, consumes less energy, and has higher utilization rates than traditional data centers, says the research firm. As a result, the transition to the cloud will continue to accelerate, and much of the work done today in internal data centers will be outsourced to the cloud by the end of the decade.

Furthermore, it's important to note that the spread of cloud computing services is helping to create a virtuous circle, wherein suppliers of servers, network equipment, disk drives, and cooling and power equipment increasingly design their products to suit the needs of large cloud operators, leading to improved operating margins through better use of electricity, and in turn to more adoption, says Pike Research. Many of the products designed specifically to optimize cloud computing have only recently begun to reach the market. 

Related Articles

Acer to buy Cloud computing firm, Igware for $320 million

Report: mobile consumer cloud revenues to reach $6.5 billion by 2016

A new era for mobile cloud billing and payments

Companies making major push for the Cloud


Featured Reports

Current State of Fifth Generation (5G) Cellular and 5G Technologies

This research provides an in-depth assessment of both technical issues (enabling technologies, 5G standardization and research initiatives, spectrum bands, etc.) and business areas (market drivers, challenges, use cases, vertical market applications, regulatory issues, trial commitments, introduction strategies, and impact to CSPs), as well as analysis of the emerging 5G ecosystem.

Click to learn more

Understanding and Capitalizing on Mobile Payment Systems

Mobile payments is rapidly expanding with solutions, applications, and services. Mobile payments systems include technologies and solutions that deliver electronic commerce features directly across mobile-wireless devices. This report provides an understanding of mobile payments technologies, systems, major players and solutions, and an overall forecast for mobile payments for five years.

Click to learn more

More Featured Research

Access the exclusive new series of market research reports brought to you through the partnership of Mind Commerce research and

See all reports