FRAMINGHAM, MA: International Data Corporation (IDC) - one of the global providers of market intelligence, advisory services, and events- in a research shows worldwide revenues from public cloud services shall reach more than $195 billion in 2020, which is more than double the $96.5 billion revenue forecast for 2016. This represents an estimated CAGR of 20.4 percent in between 2015 to 2020.
"Cloud software will significantly outpace traditional software product delivery over the next five years, growing nearly three times faster than the software market as a whole and becoming the significant growth driver to all functional software markets," says Benjamin McGrath, Senior Research Analyst, SaaS and Business Models. "By 2020, about half of all new business software purchases will be of service-enabled software, and cloud software will constitute more than a quarter of all software sold."
All three primary software services of cloud including applications as a service, system infrastructure software (SIS) as a service (which combine to form SaaS), and application development and deployment (AD&D) or platform as a service (PaaS) was responsible for 83.7% of all public cloud revenue in 2015. The remaining 16.3% was earned by infrastructure as a service (IaaS). But in the future, IaaS and PaaS revenues are forecast to grow faster than SaaS. This will expand the Cloud revenue overall.
The United States is predicted to become the largest market for public cloud services, followed by Western Europe and Asia/Pacific (excluding Japan) (APeJ). The U.S. will generate nearly two thirds of total worldwide revenues, while Latin America and APeJ will experience the greatest revenue growth over the forecast period.
Manufacturing, banking, and professional services will be the leading industries in terms of revenue with one third of total worldwide revenues in 2016. But industries like media, telecommunications, and retail will see the fastest revenue growth over the next five years. It is believed that all 20 of the industries reported in the spending guide will experience revenue growth of more than 100% over the forecast period.
"Cloud computing is breaking down traditional technology barriers as line of business leaders and their IT organizations rely on cloud to flexibly deliver IT resources at the lower cost and faster speed that businesses require. Organizations across all industries are now free to adapt to market changes quicker and take more risks, as they are no longer bound by legacy IT constraints," says Eileen Smith, Program Director, Customer Insights and Analysis.