Skip to main content

Cloud IaaS Service Revenue will Reach $43.6 Billion

Cloud computing services have experienced consistent growth over the last decade. Savvy IT vendors that transformed their portfolio have reaped the benefits of their strategic foresight. Others are still reacting to the diminished demand for their legacy product offerings.

Many CIOs now consider public cloud infrastructure as a service (IaaS) as a viable alternative to their on-premises IT infrastructure. A recent survey of over 6,000 IT organizations found that nearly two thirds of the respondents are either already using or planning to use public cloud IaaS by the end of 2016.

According to their latest worldwide market study, International Data Corporation (IDC) forecasts public cloud IaaS revenues to more than triple from $12.6 billion in 2015 to $43.6 billion in 2020 -- with a compound annual growth rate (CAGR) of 28.2 percent over the five-year forecast period.

Public IaaS Market Development Trends

"Public cloud services are increasingly being seen as an enabler of business agility and speed," said Deepak Mohan, research director at IDC. "This is bringing about a shift in IT infrastructure spending, with implications for the incumbent leaders in enterprise infrastructure technologies."

IDC believes growth of public cloud IaaS has also created new service opportunities around adoption and usage of public cloud resources. That being said, with changes at the infrastructure, architectural, and operational layers, public cloud IaaS is slowly transforming the enterprise IT value chain.

The public cloud IaaS market grew 51 percent in 2015. IDC expects this high growth to continue through 2016 and 2017 with a CAGR of more than 41 percent. However, the growth rate is expected to slow after 2017 as enterprises shift from cloud exploration to cloud optimization.

Furthermore, alternatives such as managed private cloud will grow in maturity and availability, providing IT organizations with more options as they plan their infrastructure evolution to support digital transformation projects.

Demand for Hybrid Cloud Infrastructure

Large enterprise leaders seek a flexible and adaptive business technology environment, therefore hybrid solutions that mix their existing on-premises IT infrastructure with public cloud infrastructure represents the optimal configuration.

In fact, hybrid cloud infrastructure adoption is already a common practice at many large enterprises across the globe, and IDC now predicts that 80 percent of IT organizations will be committed to embrace hybrid architectures by 2018.

Moreover, the dominance of the leading cloud service providers is expected to continue throughout the forecast period, as economies of scale and continued investment drive the cycle of adoption and growth.

Popular posts from this blog

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of

AI Software Market will Reach $251 Billion

The growth in Artificial Intelligence (AI) software could lead to many benefits. As more organizations adopt AI, they may become more efficient, productive, and able to offer improved products and services. The global job market could also expand, with demand growing for roles like AI engineers and technicians. Plus, AI apps could enable breakthroughs in fields like healthcare, transportation, and energy. The worldwide AI software market will grow from $64 billion in 2022 to nearly $251 billion in 2027 at a compound annual growth rate (CAGR) of 31.4 percent, according to the latest market study by International Data Corporation (IDC). AI Software Market Development The forecast for AI-centric software includes Artificial Intelligence Platforms, AI Applications, AI System Infrastructure Software (SIS), and AI Application Development and Deployment (AD&D) software (excluding AI platforms). However, it does not include Generative AI (GenAI) platforms and applications, which IDC recent