‘Public Cloud Spending’ Set for 22 percent CAGR During 2019-23 Period
The global spending on public cloud services and infrastructure will grow more than double during the 2019-23 period, said a recent report.
A recent report by IDC predicts that the public cloud spending will grow from USD 229 billion in 2019 to around USD 500 billion by 2023, at a CAGR of 22.3 percent.
According to IDC, the overall cloud computing adoption will continue to grow further with the increasing inclination to hybrid IT strategies.
The changing user application and workload preferences are most likely to push CIOs and CTOs to look for the mix of on-premise and managed cloud services.
“Adoption of public (shared) cloud services continues to grow rapidly as enterprises, especially in professional services, telecommunications, and retail, continue to shift from traditional application software to Software As A Service (SaaS) and from traditional infrastructure to Infrastructure as a Service (IaaS) to empower customer experience and operational-led digital transformation initiatives,” says Eileen Smith, program director at IDC.
- SaaS, as a combination of applications and System Infrastructure Software (SIS), is expected to hold majority share (50 percent) of the public cloud spending.
- IaaS, as a combination of servers and storage devices, stands next in the order as the fastest growing category (with 32 percent CAGR) of cloud spending.
- Platform as a Service (PaaS), as a combination of purchases related to data management software, application platforms and integration and orchestration middleware, is expected to grow at a CAGR of 29.9 percent.
- By industry, professional services, discrete manufacturing and banking are going to account for more than one-third of the public cloud spending.
- By geography, the United States is expected to hold more than 50 percent of the public cloud spending share during the forecast period, while Western Europe is likely to hold 20 percent share.
- By growth, China (with 49 percent CAGR) is expected to exhibit the faster growth rate in public cloud spending, followed by Latin America (38.3 percent CAGR).
- By company size, very large businesses are likely to account for more than 50 percent of the public cloud spending, followed by medium-sized businesses (16 percent).
Overall, the market predictions for public cloud spending is high, showing growth prospects for the public cloud adoption.