Public IT cloud services spending is expected to grow to more than $127 billion in 2018 from $56.6 billion in 2014, representing a five-year compound annual growth rate (CAGR) of 22.8 percent, said IDC.
In 2018, public IT cloud services will account for more than half of worldwide software, server, and storage spending growth.
Growth driver will be the adoption of cloud first strategies by IT vendors expanding their offerings and IT buyers implementing new solutions.
IDC said new Cloud solutions will be in industry-focused platforms with their own innovation communities, which will reshape how companies operate their IT and compete in their own industry.
In April, 2014, Gartner predicted that the public cloud services market in India is expected to grow 32.2 percent to $556.8 million in 2014 from $421 million in 2013.
Spending on software as a service (SaaS) will increase 33.2 percent to $220 million in 2014. Gartner said SaaS is the largest overall cloud market segment, followed by infrastructure as a service (IaaS), totaling $78 million and business process as a service (BPaaS), totaling $75 million, said Gartner.
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IDC today said Cloud services will reach into almost every B2B and consumer services marketplace.
Frank Gens, senior vice president and chief analyst at IDC, said: “Many of these Cloud solutions will become more strategic than traditional IT has ever been. This combination of explosive innovation and intense competition will make the next several years a pivotal period for current and aspiring IT market leaders.”
IDC expects software as a service (SaaS) will continue to dominate public IT cloud services spending, accounting for 70 percent of 2014 cloud services expenditures – primarily because most customer demand is at the application level.
The second largest public IT cloud services category will be infrastructure as a service (IaaS), boosted by cloud storage’s 31 percent CAGR over the forecast period. Platform as a service (PaaS) and cloud storage services will be the fastest growing categories, driven by upticks in developer cloud services adoption and big data-driven solutions, respectively.
ALSO READ: Public cloud market in SMBs to grow at 24.6% CAGR during 2012-2016
In March 2013, TechNavio said the public cloud market in SMBs is expected to grow at 24.6 percent CAGR during 2012-2016. The key IT vendors in the Cloud space include Amazon, Google, HP, IBM, Microsoft, Rackspace Hosting and Salesforce.