Between now and 2020, worldwide spending on public cloud services is expected to soar to more than $195 billion, essentially doubling the revenue the industry is expected to generate by the end of this year, according to a new report from IDC.
The report, which the research firm released Aug. 10, is an update to IDC's "Worldwide Semiannual Public Cloud Services Spending Guide," originally published in January. The updated numbers show that the global compound annual growth rate of public cloud services spending will climb 20.4% from 2015 to 2020.
For 2016, public cloud revenue is expected to reach $96.5 billion.
In Wednesday's report, Benjamin McGrath, IDC's senior research analyst of SaaS and business models, noted:
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. 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.
With such rapid growth in public cloud services expected in the coming years, here are some key points that IT professionals may want to monitor based on IDC's findings:
Eileen Smith, IDC's program director of customer insights and analysis, noted in the report that cloud computing and the flexibility that technology offers is now expanding well beyond traditional enterprises to all businesses:
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.Dawn Kawamoto is an Associate Editor for Dark Reading, where she covers cybersecurity news and trends. She is an award-winning journalist who has written and edited technology, management, leadership, career, finance, and innovation stories for such publications as CNET's ... View Full Bio