Make those minutes count

The Explosive Growth of the Cloud

Cloud GrowthThe IT landscape is shifting, and cloud services aren’t just center stage – they’re overwhelming the stage.

The Worldwide Semiannual Public Cloud Services Spending Guide, a publication of market intelligence firm IDC, analyzed Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) spending numbers across various global markets and a range of industries. The findings are clear: with a 2017 spending increase of 24.4% over 2016, cresting $120 million worldwide, cloud growth outstrips all other IT growth by a factor of seven. And the rate of growth is forecasted to remain high — above 20% per year through 2020.

SaaS Domination

Cloud computing is still dominated by SaaS applications, though there’s no guarantee that SaaS will remain the flagship offering of the cloud. SaaS represents about two-thirds of current cloud spending, but its growth is slower than IaaS and PaaS trajectories: through 2020, PaaS is expected to grow at a rate of 30.1% each year, while IaaS outstrips it at 32.2% annually.

Adoption by Industry

Not all industries are seeing equal cloud adoption. Manufacturing, professional services, and finance are forecasted to spend the most on cloud services, accounting for around a third of all cloud spending. The professional services industry also leads the pack in cloud growth, with a spending rate growing by almost 24% per year.

Cloud Spending

Despite the potential expense of moving large organizations (and entrenched infrastructure) to the cloud, companies with over 1,000 employees aren’t shy about migration: they account for over half of all cloud spending, and their spending rate is increasing faster than companies with fewer employees.

Global Cloud

Generating almost two-thirds of all global cloud revenue, the United States is the largest current public cloud market – though the Asia/Pacific region (Japan not included) and Latin America are each growing at faster rates: Asia/Pacific at 28%, and Latin America at 26.6% annually. In fact, globally, the US has one of the slowest cloud growth markets, increasing at a rate just shy of 20% per year.

As the market matures, it’s likely that previously untapped markets will come to regard the cloud as an essential piece of infrastructure. In particular, European markets have been more resistant to cloud adoption than those in the US, but they show healthy growth which is forecasted to continue through the end of the decade.

Domestically and worldwide, for large companies and small, the cloud is growing – and it’s not predicted to stop any time soon.

Speak Your Mind

*