Recent study by IDC (International Data Corporation) forecasts that Global Spending on Public Cloud Services and Infrastructure will more than double by 2023. IDC’s Worldwide Semiannual Public Cloud Services Spending Guide covers over 50 countries and 20 industries including Banking, Manufacturing, Healthcare and Government. The study analyses the public cloud computing market size and industry opportunity by specific region, country, and technology. Segmented by industry, use case and technology component, this guide provides IT vendors with insights into this rapidly growing market and how the market will develop over the coming years.
The study forecasted that worldwide spending on public cloud services and infrastructure will more than double over the 2019-2023 forecast period. Public cloud spending is expected to grow from $229 billion in 2019 to nearly $500 billion in 2023 at a CAGR of 22.3%. This growth is mainly driven by Digital Transformation deployments with Software as a Service (SaaS) capturing more than half of all public cloud spending in throughout the forecast period. SaaS spending will be dominated by application purchases mainly in the Customer Relationship Management (CRM) and Enterprise Resource Management (ERM) areas.
“Adoption of public cloud services continues to grow rapidly as enterprises, especially in professional services, telecommunications, and retail, continue to shift from traditional application software to software as a service (SaaS) and from traditional infrastructure to infrastructure as a service (IaaS) to empower customer experience and operational-led digital transformation (DX) initiatives.”Eileen Smith, Program Director at IDC
SaaS spending is followed by Infrastructure as a Service (IaaS) and Platform as a Service (PaaS), which will be the second and third largest category respectively of public cloud spending throughout the forecast. IaaS spending, comprised of servers and storage devices, will also be the fastest growing category of cloud spending with a five-year CAGR of 32.0%. PaaS spending will grow nearly as fast (29.9% CAGR) led by purchases of data management software, application platforms, and integration and orchestration middleware. IaaS will see its share of spending increase significantly for industries that are building data and compute intensive services.
Professional Services, Discrete Manufacturing and Banking industries are the top three industries accounting for more than one third of all public cloud services spending. Geographically, the United States leads as the largest public cloud services market, accounting for more than half the worldwide total through 2023. Western Europe will be the second largest market with nearly 20% of the worldwide total followed by China, which will experience the fastest growth in public cloud services spending over the five-year forecast period with a 49.1% CAGR. Latin America will also deliver strong public cloud spending growth with a 38.3% CAGR.
Not surprisingly, businesses with over 1000 employees will account for more than half of all public cloud spending, followed by medium sized businesses, contributing around 16% of the worldwide total. All the company size categories except for very large businesses will experience spending growth greater than the overall market.
Why Cloud Kinetics?
As companies increase their spending on public cloud services and infrastructure, there is often a need for a strong cloud services provider who can act as a partner in their cloud journey. At Cloud Kinetics, we believe that the right digital strategy can help companies increase their competitive advantage and enhance customer experience. That is where we have built our core expertise. We tirelessly work towards accelerating our clients’ business transformation journeys by using cutting-edge platform-driven services. We do this in an agile, responsive and scalable manner, ensuring a significant impact on business with minimal disruption.