IDC: Cloud Services Investment to Grow 27.6% Per Year through 2015

IT cloud services will expand at a compound annual growth rate (CAGR) of 27.6%, from $21.5 billion in 2010 to $72.9 billion in 2015, market research firm IDC forecasts. Having emerged as the critical, core infrastructure necessary to realize convergence, Cloud computing's impact will reach far beyond IT spending, however, IDC notes.

"Cloud services are interconnected with and accelerated by other disruptive technologies, including mobile devices, wireless networks, big data analytics, and social networking," said Frank Gens, senior vice president and chief analyst at IDC. "Together, these technologies are merging into the industry's third major platform for long-term growth.

Investment in public IT cloud services is expanding at more than 4x the rate of worldwide IT spend as a whole, according to IDC, leading the research firm to forecast that $1 out of every $7 spent "on packaged software, servers, and storage offerings in 2015 will be related to the cloud model." IT firms that succeed in the cloud services segment of the overall IT market will "likely be the new power brokers of the IT industry," IDC says.

Other findings in IDC's, "Worldwide and Regional Public IT Cloud Services 2011-2015 Forecast," include:

  • In 2015, public cloud services will account for 46% of net new growth in overall IT spending in five key product categories - applications, application development and deployment, systems infrastructure software, basic storage, and servers.
  • Software-oriented cloud services (SaaS) will account for roughly three quarters of all spending on public cloud IT services throughout the forecast. This includes all three software-oriented cloud categories, not just applications. Spending on hardware-oriented cloud services (servers and storage) will be largely driven by SaaS providers building out their infrastructure.
  • The United States will dominate overall spending throughout the forecast period, with nearly 50% of all public IT cloud services revenues coming from the U.S. in 2015. But regions outside the U.S. will show much stronger growth as cloud services adoption accelerates. In particular, IDC found that there are more cloud services vendors and greater end user spending in Asia/Pacific and Western Europe than previously thought.
Written by Michael Standley at 00:00
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