Cloud Provider Commentary

Sep 13 2012   11:37AM GMT

IDC: Public cloud spending to approach $100B in 2016

Jessica Scarpati Jessica Scarpati Profile: Jessica Scarpati

Although the cloud still has its skeptics, some new research from International Data Corporation (IDC) suggests their influence is going to dwindle — and fast.

Global spending on public cloud IT services is expected to exceed $40 billion by the end of this year, IDC reports. By 2016, cloud spending will approach $100 billion.

Over this four-year period, that represents a 26.4% compound annual growth rate. That’s five times as fast as the IT industry overall, according to IDC.

Which cloud services are going to be the hottest markets? IDC says Software as a Service (SaaS) will “claim the largest share” of cloud services spending over the next five years. Interestingly, however, cloud storage and Platform as a Service (PaaS) will grow faster.

This probably comes as no surprise to cloud providers. Infrastructure as a Service (IaaS) is on track to become commoditized (if it hasn’t already), and cloud providers are recognizing that selling SaaS and PaaS will be more profitable over the long term.

From a geographic perspective, the United States will occupy the largest share of the cloud market, IDC reported. Following closely behind the U.S. are Western Europe and the Asia-Pacific region (minus Japan). But the fastest-growth area for cloud spending? Emerging markets, whose “collective share [will] nearly double by 2016 when it will account for almost 30% of net-new public IT cloud services spending growth,” according to IDC.

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  • More evidence of the cloud’s staying power: U.S. revenue to hit $43.2B by 2016 - Cloud Provider Commentary
    [...] to shoot up to $100 billion by 2016 — meaning that U.S. cloud revenue may account for almost half of worldwide spending. So, if there are skeptics still out there, soon enough you may┬áhave to leave the country to hear [...]
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