Worldwide Public Cloud Services Spending Forecast to Reach $160 Billion This Year, According to IDC

FRAMINGHAM, Mass.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/IDCSpendingGuide?src=hash” target=”_blank”gt;#IDCSpendingGuidelt;/agt;–Worldwide spending on public cloud services and infrastructure is
forecast to reach $210 billion in 2019, an increase of 23.8% over 2018,
according to the latest update to the International Data Corporation (IDC)
Worldwide
Semiannual Public Cloud Services Spending Guide
. Although annual
spending growth is expected to slow slightly over the 2017-2022 forecast
period, the market is forecast to achieve a five-year compound annual
growth rate (CAGR) of 22.5% with public cloud services spending reaching
$370 billion in 2022.

“Most organizations have adopted the public cloud as a cost-effective
platform for hosting enterprise applications and for developing and
deploying customer-facing solutions,” said Eileen
Smith
, program director, Customer
Insights and Analysis
. “Over the next five years, IDC believes that
cloud platforms and ecosystems will serve as the launchpad for an
explosion in the scale and pace of digital innovation. The result will
be ‘multiplied innovation’ with as many new applications deployed in the
cloud as prior generations deployed over the previous four decades.”

Three industries – professional services, discrete manufacturing, and
banking – will each spend more than $20 billion on public cloud services
this year, accounting for more than one third of the worldwide total.
The process manufacturing and retail industries will round out the top
five with spending of more than $15 billion each. These will remain the
top five industries in 2022 due to their continued investment in public
cloud solutions. The industries that will see the fastest spending
growth over the five-year forecast period are professional services
(26.4% CAGR), retail (24.0% CAGR), and personal and consumer services
(24.0% CAGR).

Software as a Service (SaaS) will be the largest category of cloud
computing, capturing more than half of all public cloud spending in
2019. SaaS spending, which is comprised of applications and system
infrastructure software (SIS), will be dominated by applications
purchases. The leading SaaS applications will be enterprise resource
management (ERM) and customer relationship management (CRM), followed by
content workflow and management applications and collaborative
applications.

Infrastructure as a Service (IaaS) will be the second largest category
of public cloud spending in 2019, followed by Platform as a Service
(PaaS). IaaS spending, comprised of servers and storage devices, will be
the fastest growing category of cloud spending with a five-year CAGR of
33.7%. PaaS spending will be the second-fastest growing category (29.8%
CAGR) led by purchases of data management software application
platforms, integration and orchestration middleware, and data access,
analysis and delivery applications.

The United States will be the largest geographic public cloud market
with spending forecast to be $124.6 billion in 2019. China will be the
second largest market at $10.5 billion, followed closely by the United
Kingdom ($10.0 billion) and Germany ($9.5 billion). Japan will round out
the top five with $7.4 billion in public cloud spending this year. China
will experience the fastest growth in public cloud services spending
over the five-year forecast period (44.9% CAGR). Latin America will also
deliver strong public cloud spending growth, led by Brazil (38.8% CAGR),
Colombia (38.5% CAGR) and Argentina (38.4% CAGR)..

Very large businesses (more than 1000 employees) will account for more
than half of all public cloud spending this year, while medium-size
businesses (100-499 employees) will deliver another 20% of the worldwide
total. Small businesses (10-99 employees) will edge out large businesses
(500-999 employees) for the third position. With the exception of the
very large business category, all the other company size categories,
including small office (1-9 employees) will experience public cloud
spending growth greater than the 22.5% CAGR of the overall market.

The Worldwide
Semiannual Public Cloud Services Spending Guide
quantifies public
cloud computing purchases by cloud type for 20 industries and five
company sizes across nine regions and 49 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.

About IDC Spending Guides
IDC’s Spending Guides provide a
granular view of key technology markets from a regional, vertical
industry, use case, buyer, and technology perspective. The spending
guides are delivered via pivot table format or custom query tool,
allowing the user to easily extract meaningful information about each
market by viewing data trends and relationships.

For more information about IDC’s Spending Guides, please contact Monika
Kumar at [email protected].

About IDC
International Data Corporation (IDC) is the
premier global provider of market intelligence, advisory services, and
events for the information technology, telecommunications, and consumer
technology markets. With more than 1,100 analysts worldwide, IDC offers
global, regional, and local expertise on technology and industry
opportunities and trends in over 110 countries. IDC’s analysis and
insight helps IT professionals, business executives, and the investment
community to make fact-based technology decisions and to achieve their
key business objectives. Founded in 1964, IDC is a wholly-owned
subsidiary of International Data Group (IDG),
the world’s leading media, data and marketing services company that
activates and engages the most influential technology buyers. To learn
more about IDC, please visit www.idc.com.
Follow IDC on Twitter at @IDC
and LinkedIn.

Contacts

Eileen Smith
[email protected]
508-238-0190

Michael Shirer
[email protected]
508-935-4200

error: Content is protected !!