Worldwide spending on public cloud services will grow at a CAGR of 19.4 percent to $141 billion in 2019 from nearly $70 billion in 2015, latest Worldwide Semiannual Public Cloud Services Spending Guide from IDC showed.
The projected CAGR is almost six times the rate of overall IT spending growth estimated.
The report observed that Software as a Service will remain the dominant cloud computing type, capturing more than two thirds of all public cloud spending through most of the forecast period.
Worldwide spending on Infrastructure as a Service and Platform as a Service will grow at a faster rate than SaaS with five-year CAGRs of 27 percent and 30.6 percent, respectively.
“Over the past several years, the software industry has been shifting to a cloud-first development and deployment model. By 2018, most software vendors will have fully shifted to a SaaS/PaaS code base,” said Frank Gens, Senior Vice President and Chief Analyst at IDC.
“This means that many enterprise software customers, as they reach their next major software upgrade decisions, will be offered SaaS as the preferred option. Put together, new solutions born on the cloud and traditional solutions migrating to the cloud will steadily pull more customers and their data to the cloud.”
From a company size perspective, large and very large companies will be the primary driver of worldwide public cloud services with spending of more than $80 billion in 2019.
However, small and medium businesses will remain a significant contributor to overall spending with more than 40 percent of the worldwide total throughout the forecast period coming from companies with fewer than 500 employees.
The industries with the largest public cloud services expenditures in 2015 were discrete manufacturing at $8.6 billion, followed by banking and professional services at $6.8 billion and $6.6 billion, respectively.
Telecommunications will be the fastest-growing vertical industry over the 2014-2019 forecast period with a worldwide CAGR of 22.2 percent.