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BigData: Article

The Future Belongs to the Cloud: IDC

‘The winners of the cloud platform wars will likely be the new power brokers of the IT industry’

IDC reckons that spending on public cloud services is good for 27.6% compound annual growth (CAGR) over the next five years increasing from $21.5 billion last year to $72.9 billion in 2015, more than four times the rate of the worldwide IT market as whole.

But it also figures that "the impact of cloud services will extend well beyond IT spending" and describes cloud services as part of "a much larger transformation that will drive IT industry growth for the next 25 years."

It says cloud services together with mobile devices, wireless networks, big data analytics and social networking "are merging into the industry's third major platform for long-term growth. As during the mainframe and PC eras, the new platform promises to radically expand the users and uses of information technology, leading to a wide and entirely new variety of intelligent industry solutions."

IDC expects one out of every seven dollars spent on packaged software, servers and storage in 2015 will relate to the public cloud model and that "the winners of the cloud platform wars will likely be the new power brokers of the IT industry."

The researcher projects that in 2015 public cloud services will account for 46% of net new growth in overall IT spending on applications, application development and deployment, systems infrastructure software, basic storage and servers.

It figures SaaS will account for roughly three-quarters of all spending on public cloud IT services for the next five years and that "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."

Nearly 50% of all public IT cloud services revenues will come from the US in 2015, it forecasts, but regions outside America are supposed to show much stronger growth as cloud services adoption accelerates. It found more cloud services vendors and end-user spending in Asia/Pacific and Western Europe than it previously thought.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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