Skip to main content

Upside for Overall Cloud IT will Reach $554B in 2021

If you want to appreciate the full extent of the cloud computing phenomena, then you need to comprehend the ongoing impact to the IT ecosystem. It's been fueled by a disruptive series of innovations that have enabled software developers to accelerate the speed of digital transformation.

The cloud delivery and consumption model has revolutionized the entire IT industry. But the cloud opportunity extends well beyond the public cloud -- which makes up less than half of all cloud-related spending today -- and includes private and hybrid clouds, as well as managed cloud services, cloud-related professional services, and hardware and software infrastructure for building clouds.

Cloud Computing Market Development

In its first forecast of the 'whole cloud' opportunity, International Data Corporation (IDC) estimates that worldwide whole cloud revenues will reach $554 billion in 2021 -- that's more than double those of 2016.

"The most obvious takeaway from this forecast is that the shift to the cloud consumption model -- in all its forms -- is a mass movement, and will continue to be such over the forecast period," said Frank Gens, senior vice president and chief analyst at IDC.

The past few years have produced a steady stream of innovative new services introduced by the major public cloud service providers, including blockchain services, IoT back-end data services, encryption services, serverless computing services, and even new computing hardware services.

IDC expects the pace of innovation on public clouds to continue and, more likely, to accelerate. Similarly, IDC expects to see a steady expansion of enterprise workloads on the cloud as cloud service providers and their partners focus on new deployment scenarios for these workloads.

Despite lingering concerns about security, vendor and technology lock-in, and interoperability, IDC believes that cloud computing will continue to dominate and transform enterprise computing for years to come.

Key highlights from the IDC forecast include:

In 2016, public cloud services accounted for 41 percent of all cloud-related spending. By 2021, this figure will increase to 48 percent. And, when spending on hardware and software that enables public cloud services, and managed and professional services around the cloud are included, these figures rise to 65 percent and 68 percent, respectively.

Spending on managed and professional services around cloud adoption are, collectively, the second largest opportunity in the whole cloud market, accounting for 31 percent of all cloud-related spending in 2016 and 2021.

The hyperscale datacenters operated by cloud service providers are dramatically altering the market for infrastructure hardware and software. By 2021, cloud service providers will account for 76 percent of cloud-related infrastructure hardware and software spending.

Popular posts from this blog

Digital Transformation Spending Reaches $1.8 Trillion

Ongoing investment in business technology will remain on track, despite concerns about the global economic outlook which continues to evolve in 2022. Enterprise CIOs and CTOs are focused on operational profitability and digital business growth goals that are enabled by strategic IT initiatives. Global spending on the Digital Transformation (DX) of business practices, products, and organizations is forecast to reach $1.8 trillion in 2022 -- that's an increase of 17.6 percent over 2021, according to the latest market study by International Data Corporation (IDC). Many anticipated DX investments will sustain this pace of growth throughout the 2021-2025 forecast period, with a five-year compound annual growth rate (CAGR) of 16.6 percent. Digital Transformation Global Market Development "IDC expects to see aggressive DX technology investment growth in 2022 following a minor slowdown during the pandemic period," said Craig Simpson, senior research manager at IDC . "As orga

Flexible Working: Why Company Culture Matters

The main reasons for the Great Resignation are obsolete leadership, fearful middle managers, and a toxic culture that hinders employee engagement. Perhaps that's why some organizations are still struggling with the consideration and development of a flexible working model.  They're incapable of evolving to a more enlightened approach to work where employees are treated with respect. They're stuck in a bygone era of the 20th-century industrial revolution where 'shareholder value' tops all other values, and where spreadsheets and financial data analysis drives all key decision making. We should not be surprised that 76 percent of human resource (HR) leaders now feel that hybrid work challenges an employee's connection to organizational culture, according to a recent survey by Gartner. A 2022 poll of HR leaders reveals the most challenging aspect of setting their hybrid strategy is adjusting the current organizational culture to support a hybrid workforce. In fact,

Energy Sector IoT Cybersecurity Gains Momentum

The electric distribution industry continues to invest in digital transformation projects. Advanced Metering Infrastructure (AMI) technology is becoming a driver for connected electricity meters, which will reach an installed base of 1.3 billion by 2027. AMI growth is prompting utilities and energy suppliers to revisit their IT infrastructure security and device management operations, according to the latest worldwide market study by ABI Research. Energy Infrastructure Security Market Development Digitization of traditional electricity grids and the modernization of the aging energy infrastructure is among the top concerns for utility operators and governments worldwide. Security for last-mile energy consumption applications was frequently overlooked. "However, the introduction of AMI, smart metering, and grid digitization is steadily increasing spending for secure management services, assisting implementers to transition to IT (information technologies) and OT (operational techno