IDC: Public IT Cloud Services Momentum to Accelerate

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 period.

"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 technologies."

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 Forecast."

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 analysts add.

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Written by Kevin Kutcher at 10:00
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