Spending on public Cloud services and infrastructure will grow at 24.4 percent to $122.5 billion in 2017, according to IDC.
Public cloud spending will achieve 21.5 percent compound annual growth rate (CAGR) – nearly 7 times the rate of overall IT spending growth – during the 2015-2020 forecast period. By 2020, public cloud spending will be $203.4 billion.
Spending on public cloud services and infrastructure will reach $122.5 billion in 2017.
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Software as a Service (SaaS) will be capturing nearly two thirds of public cloud spending in 2017 and roughly 60 percent in 2020. Applications purchases, which will make up more than half of all public cloud spending, will dominate SaaS spending.
Spending on Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) will grow at 30.1 percent, while SaaS will grow at 32.2 percent five-year CAGR.
Discrete manufacturing, professional services, and banking will lead the pack in spending on public cloud services in 2017.
Discrete manufacturing, professional services, and banking industries will account for one third of worldwide public cloud services spending, or $41.2 billion.
Professional services (23.9 percent CAGR), retail (22.8 percent CAGR), media (22.5 percent CAGR), and telecommunications (22.1 percent CAGR) will be the industries that will see the fastest growth in public cloud spending over the five-year forecast period.
United States will be the largest market for public cloud services, generating more than 60 percent of total revenues. Western Europe will be spending $24.1 billion and Asia Pacific excluding Japan will be spending $9.5 billion on public cloud.
APeJ and Latin America will experience the fastest spending growth over the forecast period with CAGRs of 28.0 percent and 26.6 percent, respectively. However, seven of the eight regions are forecast to experience CAGRs greater than 20 percent over the next five years with the United States seeing the slowest growth at 19.9 percent.