SHARE

Public Cloud Spending to Jump 24% in 2017

The cloud market just keeps rising. Public cloud services and infrastructure providers are poised to rake in $122.5 billion this year, a 24.4-percent increase compared to 2016, predicted IDC. And there are no signs of it slowing down, at least not in the next few years. Cloud Storage and Backup Benefits Protecting your company’s data […]

Written By

Pedro Hernandez

Feb 21, 2017

Datamation content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More

The cloud market just keeps rising.

Public cloud services and infrastructure providers are poised to rake in $122.5 billion this year, a 24.4-percent increase compared to 2016, predicted IDC. And there are no signs of it slowing down, at least not in the next few years.

Cloud Storage and Backup Benefits

Protecting your company’s data is critical. Cloud storage with automated backup is scalable, flexible and provides peace of mind. Cobalt Iron’s enterprise-grade backup and recovery solution is known for its hands-free automation and reliability, at a lower cost. Cloud backup that just works.

SCHEDULE FREE CONSULT/DEMO

“In 2017, discrete manufacturing, professional services, and banking will lead the pack in global spending on public cloud services as they look for greater scalability, higher performance, and faster access to new technologies,” said Eileen Smith, program director of Customer Insights and Analysis at IDC, in a statement. “Combined, these three industries will account for one third of worldwide public cloud services spending, or $41.2 billion.”

cloud computing growth

The analyst firm expects cloud spending to cross over the $203 billion mark by 2020. That figure representing a compound annual growth rate (CAGR) of 21.5 percent during the forecast period (2015 – 2020), or roughly seven times the IT spending growth rate overall.

The software-as-a-service (SaaS) segment will be the market’s biggest earner this year, generating nearly two-thirds of all revenues. By 2020, it will remain the cloud leader with an estimated 60 percent. Although they’ll trail behind SaaS in terms of market size, both the infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) segments will outpace SaaS when it comes to growth, attaining CAGRs of 30.1 percent and 32.2 percent, respectively.

Very large enterprises, defined by IDC as having more than 1,000 employees, will generate half of all cloud spending throughout the forecast. Midsized businesses, with 100-499 workers, will drive 20 percent of the market. These organizations will flock to cloud-delivered customer relationship management (CRM) and enterprise resource management (ERM) software, IDC expects.

In the meantime, the emergence of intelligent, Internet of Things-enabled services will have a transformative impact on the cloud, its capabilities and how businesses consume it, said IDC senior vice president and chief analyst Frank Gens.

“As cloud adoption expands over the next four years, what clouds are and what they can do will evolve dramatically – in several important ways. The cloud will become more distributed (through Internet of Things edge services and multicloud services), more trusted, more intelligent, more industry and workload specialized, and more channel mediated,” stated Gens. “As the cloud evolves these important new capabilities – what IDC calls ‘Cloud 2.0’ – the use cases for the cloud will dramatically expand.”

Pedro Hernandez is a contributing editor at Datamation. Follow him on Twitter @ecoINSITE.

Huawei’s AI Update: Things Are Moving Faster Than We Think

FEATURE | By Rob Enderle,
December 04, 2020
Keeping Machine Learning Algorithms Honest in the ‘Ethics-First’ Era

ARTIFICIAL INTELLIGENCE | By Guest Author,
November 18, 2020
Key Trends in Chatbots and RPA

FEATURE | By Guest Author,
November 10, 2020
Top 10 AIOps Companies

FEATURE | By Samuel Greengard,
November 05, 2020
What is Text Analysis?

ARTIFICIAL INTELLIGENCE | By Guest Author,
November 02, 2020
How Intel’s Work With Autonomous Cars Could Redefine General Purpose AI

ARTIFICIAL INTELLIGENCE | By Rob Enderle,
October 29, 2020
Dell Technologies World: Weaving Together Human And Machine Interaction For AI And Robotics

ARTIFICIAL INTELLIGENCE | By Rob Enderle,
October 23, 2020
The Super Moderator, or How IBM Project Debater Could Save Social Media

FEATURE | By Rob Enderle,
October 16, 2020
Top 10 Chatbot Platforms

FEATURE | By Cynthia Harvey,
October 07, 2020
Finding a Career Path in AI

ARTIFICIAL INTELLIGENCE | By Guest Author,
October 05, 2020
CIOs Discuss the Promise of AI and Data Science

FEATURE | By Guest Author,
September 25, 2020
Microsoft Is Building An AI Product That Could Predict The Future

FEATURE | By Rob Enderle,
September 25, 2020
Top 10 Machine Learning Companies 2020

FEATURE | By Cynthia Harvey,
September 22, 2020
NVIDIA and ARM: Massively Changing The AI Landscape

ARTIFICIAL INTELLIGENCE | By Rob Enderle,
September 18, 2020
Continuous Intelligence: Expert Discussion [Video and Podcast]

ARTIFICIAL INTELLIGENCE | By James Maguire,
September 14, 2020
Artificial Intelligence: Governance and Ethics [Video]

ARTIFICIAL INTELLIGENCE | By James Maguire,
September 13, 2020
IBM Watson At The US Open: Showcasing The Power Of A Mature Enterprise-Class AI

FEATURE | By Rob Enderle,
September 11, 2020
Artificial Intelligence: Perception vs. Reality

FEATURE | By James Maguire,
September 09, 2020
Anticipating The Coming Wave Of AI Enhanced PCs

FEATURE | By Rob Enderle,
September 05, 2020
The Critical Nature Of IBM’s NLP (Natural Language Processing) Effort

ARTIFICIAL INTELLIGENCE | By Rob Enderle,
August 14, 2020

SEE ALL
CLOUD ARTICLES

Pedro Hernandez

Pedro Hernandez is a contributor to Datamation, eWEEK, and the IT Business Edge Network, the network for technology professionals. Previously, he served as a managing editor for the Internet.com network of IT-related websites and as the Green IT curator for GigaOM Pro.