How big is the public cloud? Big — and about to be huge.
Market watcher IDC is now predicting that total worldwide spending on public cloud services and infrastructure will nearly double between now and 2023.
The public-cloud market is already enormous, with worldwide spending expected to approach $230 billion this year. If IDC is right, that will rise to almost $500 billion in 2023. That would work out to a 5-year compound annual growth rate (CAGR) of 22%.
“Adoption of public cloud services continues to grow rapidly,” says IDC program director Eileen Smith. She isn't kidding.
As a service - 3 ways
Getting a bit more granular, today’s public-cloud business comprises 3 main offerings:
> Software as a Service (SaaS): Currently accounts for more than half of public-cloud spending worldwide. Top applications include cloud-based CRM and ERM.
> Infrastructure as a Service (IaaS): The second biggest submarket, it offers cloud-based servers and storage devices. IDC predicts this sector will have a 5-year CAGR of 32%, or 10 points faster than the public-cloud market overall.
> Platform as a Service (PaaS): The third biggest sector, it offers cloud-based data-management software, application platforms, and middleware for both integration and orchestration. IDC predicts the PaaS market will have a 5-year CAGR of nearly 30%, or almost as fast as that for IaaS.
3 cloudy views
Where’s the money getting spent on public cloud? IDC offers 3 ways of thinking about it:
> By industry: Just 3 industries account for more than a third of total worldwide public-cloud spending. They are professional services, discrete manufacturing and banking.
> By geography: The United States is by far the largest market for the public cloud. It accounts for more than half the worldwide market, and will continue to do so through at least 2023. The next biggest regional markets are, in order: Western Europe, China and Latin America.
> By company size: Very large organizations, those with more than 1,000 employees, account for over half of all public-cloud spending. Midsize businesses, those with 100 to 499 employees, account for 16%. And small businesses, those with just 1 to 9 employees, will be in the low single digits. The good news is, all these sectors — with one exception, very large organizations — are expected to grow faster than the overall public-cloud market.
How about you? Are you ready for a market growing by over 20% a year? At that rate, the public cloud is all silver lining.