An updated report (originally published in January) by ‘premier global market intelligence firm” IDC suggests a huge increase in public cloud services is on the horizon.
IDC, which has headquarters in Framingham, Massachusetts, United States, provides “market intelligence, advisory services, and events for the information technology, telecommunications and consumer technology markets”. In operation for over 50 years, the company maintains a network of around 1,100 analysts that establish “technology and industry opportunities and trends in over 110 countries worldwide”. Its report, the "
Worldwide Semiannual Public Cloud Services Spending Guide", suggests that the public cloud services market will reach $195 billion by 2020.
The growth the report predicts represents double that the industry is likely to generate by the end of 2016. While the report suggests that Software-as-a-Service (SaaS) will take the bulk of the market, Platform-as-a-Service (PaaS) and Infrastructure-as-a-Service (IaaS) are likely to be high growth areas. The updated report also suggests the global compound annual growth rate of public cloud services will increase 20.4% from 2015 to 2020.
While growth in the United States will account for just over 65% of public cloud service revenues during the period, Western Europe and the Asia-Pacific region (not including Japan) will be the next strongest areas.
"Cloud software will significantly outpace traditional software product delivery over the next five years, growing nearly three times faster than the software market as a whole and becoming the significant growth driver to all functional software markets," explained IDC’s Senior Research Analyst, SaaS and Business Models, Benjamin McGrath. "By 2020, about half of all new business software purchases will be of service-enabled software, and cloud software will constitute more than a quarter of all software sold."
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