The latest forecast from IDC foresees worldwide spending on
public IT cloud services amounting to more than
$40 billion in 2012 and growing to nearly $100 billion in 2016. The
public IT cloud services market will grow at a compound annual rate
(CAGR) of 26.4% over the five-year period, five times that of the
IT industry overall, IDC says.
IDC analysts predict that by 2016 public IT cloud
services expenditures will account for 16% of IT revenue
in five key categories: applications, system infrastructure
software, platform-as-a-service (PaaS), servers and basic storage.
Yet more significantly, they predict that cloud services will
generate 41% of overall growth in these categories over the
"The IT industry is in the midst of an important transformative
period as companies invest in the technologies that will drive
growth and innovation over the next two to three decades,"
elaborated IDC senior vice president and chief analyst Frank Gens.
"By the end of the decade, IDC expects at least 80% of the
industry's growth, and enterprises' highest-value leverage of IT,
will be driven by cloud services and the other 3rd Platform
Spending on software-as-a-service
(SaaS)--the combination of application and system
infrastructure-as-a-service--will rise to take the greatest single
share of the public IT cloud services spending over the next five
years, according to IDC's "
Worldwide and Regional Public IT Cloud Services 2012-2016
Spending in other segment categories, "notably basic storage and
platform-as-a-service, will show faster growth." An acceleration in
the rollout of PaaS over the next 12-18 months "will be critical to
maintaining strong cloud momentum," the market research firm's
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