Cloud services to double by 2019


According to a recent press release by the International Data Corporation (IDC), the Worldwide Semiannual Public Cloud Services Spending Guide has predicted that the public cloud service is going to grow even further in the coming years. In 2015, the worldwide spending on public cloud services reached an amount of $70 billion. That amount is expected to reach $141 billion by 2019, with an annual growth rate of 19.4%.

IDC's detailed public cloud services forecasts predicts that Software as a Service (SaaS) will continue to be the most used cloud computing type with over 2/3 of all the public cloud services in use up to now, while the worldwide spending on Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) are expected to have a faster grow rate compared to the SaaS growth rate. IaaS will grow by 27.0% while PaaS with 30.6%.

"Over the past several years, the software industry has been shifting to a cloud-first (SaaS) development and deployment model. By 2018, most software vendors will have fully shifted to a SaaS/PaaS code base," according to Frank Gens, Senior Vice President & Chief Analyst at IDC. "This means that many enterprise software customers, as they reach their next major software upgrade decisions, will be offered SaaS as the preferred option. Put together, new solutions born on the cloud and traditional solutions migrating to the cloud will steadily pull more customers and their data to the cloud,” Gens added.

What will make the expenditure of  worldwide public cloud services grow even further in the near future will be large companies which according to the report are expected to spend over $80 billion in 2019. The rest of the companies including small and medium business will also contribute significantly to the total expenditure worldwide. Companies that have less than 500 employees will continue to be a big part of the worldwide total contributing over 40% of the total sum.

“The industries with the largest public cloud services expenditures in 2015 were discrete manufacturing at $8.6 billion, followed by banking and professional services at $6.8 billion and $6.6 billion, respectively.”  

Even though professional services has been the third industry with large cloud services expenditures during the previous year, by 2019, this industry is expected to move up by one position leaving banking industry behind. In 2015, the top three industries “were also the public cloud services spending leaders in the Americas and in Europe, Middle East, and Africa.”

The industry of telecommunications, which was predicted to be the fastest-growing industry during the 2014-2019 period is expected to have a worldwide CAGR of 22.2% followed by other industries like media, state/local government, education, retail, transportation, resource industries, etc. which will also have a CAGR of over 20% by 2019. “Cloud services will remain the essential foundation of the IT industry's 3rd Platform of innovation and growth.


As the cloud market enters an 'innovation stage', there will be an explosion of new solutions and value creation on top of the cloud,” according to IDC Analyst Eileen Smith. “Industry-specific applications will be a driving force as businesses look for solutions that can be easily configured to their unique business and vertical requirements. With the huge increase in the number and diversity of services available in the market, organizations across the industries will shift steadily toward cloud-first strategies to enable digital transformation," Smith added.

New innovation stage

As cloud marked has already reached a new innovation stage, a bum of solutions will be offered for increasing the value of cloud infrastructure and the digital transformation has just began to show us a little glimpse of how great the cloud market will become in the coming years.

A Worldwide Semiannual Public Cloud Services Spending Guide by IDC which  examines how much is spent on cloud services in 20 industries and 43 countries, using different technologies such as enterprise mobility services, mobile enterprise applications, mobile software, smartphones, tablets, wireless data, etc., and data gathered over a six-year period.

According to the guide, these are the 20 industries included: banking, insurance, securities and investment services, discrete manufacturing, process manufacturing, construction, resource industries, retail, wholesale, professional services, personal and consumer services, transportation, healthcare provider, federal/central government, state/local government, education, telecommunications, media, utilities, and consumer.

Among the studies included in the guide are:

Source: IDC

Besides taking into account 20 industries and 43 countries, the guide also covers IT markets over 8 regions such as the United States, Canada, Japan, Western Europe, Central and Eastern Europe, Middle East and Africa, Latin America, and Asia/Pacific with 4 primary markets being system infrastructure software, application development and software, applications, and infrastructure, while IaaS, PaaS, and SaaS as public computing types.

We are already seeing considerable changes in cloud services expenditure so the chances of the total amount spent to double by the time 2019 is here, are very high.

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