Worldwide spending on public cloud services and infrastructure will more than double by 2023, underpinned by digital transformation deployments.
According to IDC findings, public cloud spending will grow from $229 billion in 2019 to nearly $500 billion in 2023, at a growth rate of 22.3 per cent.
“Adoption of public (shared) cloud services continues to grow rapidly,” said Eileen Smith, program director of IDC. “Enterprises, especially in professional services, telecommunications, and retail, continue to shift from traditional application software to software-as-a-service (SaaS) and from traditional infrastructure to infrastructure-as-a-service (IaaS) to empower customer experience and operational-led digital transformation initiatives.”
Of note to the channel, SaaS represent the largest category of cloud computing, capturing more than half of all public cloud spending within the next four years.
The market segment, which comprises applications and system infrastructure software (SIS), will be dominated by applications purchases, according to IDC.
“The leading SaaS applications will be customer relationship management (CRM) and enterprise resource management (ERM),” an IDC report stated. “SIS spending will be led by purchases of security software and system and service management software.”
Meanwhile, IaaS will be the second largest category of public cloud spending throughout the forecast, followed by platform-as-a-service (PaaS). IaaS spending, spanning servers and storage devices, will also be the fastest growing category of cloud spending with a growth rate of 32 per cent.
“PaaS spending will grow nearly as fast - 29.9 per cent - led by purchases of data management software, application platforms, and integration and orchestration middleware,” IDC added.
Three industries - professional services, discrete manufacturing, and banking - will account for more than one third of all public cloud services spending throughout the forecast.
“While SaaS will be the leading category of investment for all industries, IaaS will see its share of spending increase significantly for industries that are building data and compute intensive services,” IDC stated.
“For example, IaaS spending will represent more than 40 per cent of public cloud services spending by the professional services industry in 2023 compared to less than 30 per cent for most other industries. Professional services will also see the fastest growth in public cloud spending with a five-year CAGR of 25.6 per cent.”