Cloud Is Growing Seven Times The Rate Of Overall IT Spending: IDC
Worldwide spending on public cloud services and infrastructure will reach $122.5 billion in 2017, an increase of 24.4% over 2016, states IDC’s Worldwide Semiannual Public Cloud Services Spending Guide. The research firm tracks public cloud services spending over a span of five-years starting 2015. Over the 2015-2020 forecast period, overall public cloud spending will experience a 21.5% compound annual growth rate (CAGR) – nearly seven times the rate of overall IT spending growth.
By 2020, IDC forecasts public cloud spending will reach $203.4 billion worldwide.
Software as a Service (SaaS) will remain the dominant cloud computing type, capturing nearly two thirds of all public cloud spending in 2017 and roughly 60% in 2020. However, spending on Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) will grow at much faster rates than SaaS with five-year CAGRs of 30.1% and 32.2%, respectively.
IDC gives the figures of public cloud growth by industry, company size and geographic region.
“In 2017, discrete manufacturing, professional services, and banking will lead the pack in global spending on public cloud services as they look for greater scalability, higher performance, and faster access to new technologies,” said Eileen Smith, program director, Customer Insights and Analysis.
The industries that will see the fastest growth in public cloud spending over the five-year forecast period are professional services (23.9% CAGR), retail (22.8% CAGR), media (22.5% CAGR), and telecommunications (22.1% CAGR). It is worth noting, however, that 18 of the 20 industries included in the Spending Guide will experience five-year CAGRs greater than 20%.
Nearly half of all public cloud spending will come from very large businesses (those with more than 1,000 employees) while medium-sized businesses (100-499 employees) will deliver more than 20% throughout the forecast.
United States will be the largest market for public cloud services, generating more than 60% of total worldwide revenues throughout the forecast. Western Europe and Asia/Pacific (excluding Japan) APeJ will be the second and third largest regions, the analyst firm notes.
The research quantifies public cloud computing purchases by cloud type for 20 industries and five company sizes across eight regions and 47 countries. Unlike any other research in the industry, the comprehensive spending guide was designed to help IT decision makers to clearly understand the industry-specific scope and direction of public cloud services spending today and over the next five years.
- How Cloud Is Transforming CXOs' Operating Style
- CXOs Still Wary Of Cloud Data Security: Study
- AI, Cloud, IoT To Have Huge Impact On Semicon Revenue: KPMG
- Smart Cars Can Be The Next Big Thing For Indian IT Firms, Says Study
- Unnecessary Security Cordons Make Fintech More Vulnerable
- Direct Co-ordination With CEO Can Maximise Cyber Security
- How Fortis Improves Patient Care With Microsoft Azure
- Weekly Rewind: Top 10 Stories On CXOToday (Feb 5-9)
- What Lies Ahead For India's Fintech Sector?
- Cloud Computing Powering India’s Digital Economy