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Over the next five years spending on IT cloud services is expected to grow nearly threefold, reaching $42 billion by 2012 and accounting for 9 percent of revenues in five key market segments, according to a survey from IDC.

Spending on cloud computing is on track to accelerate during the forecast period, capturing 25 percent of IT spending growth in 2012 and close to a third in 2013.

"A recent IDC survey of IT executives, CIOs, and their line of business (LOB) colleagues shows that cloud services are 'crossing the chasm' and entering a period of widespread adoption," said Frank Gens, senior vice president and chief analyst at IDC.

"Moreover, IDC expects the cloud adoption trend to be amplified by the current financial crisis. The cloud model offers a much cheaper way for businesses to acquire and use IT - in an economic downturn, the appeal of that cost advantage will be greatly magnified. This advantage is especially important for small and medium businesses, a sector that will be key target in any plan for recovery."

The shift toward cloud computing is being driven by a trio of market factors. The search for growth in new segments, including emerging markets like Brazil, Russia, India and China as well as the small and medium business sector.

There are two primary opportunities for IT suppliers from the growth of cloud services. One if for the IT supplier to consider offering its own IT products or services to customers via the cloud model. The other area for IT suppliers to consider is how current and future offerings can support its customer's needs by offering a variety of business and consumer cloud services.

The two most important things a cloud services provider can offer are competitive pricing and performance level assurances.