Cloud Rolls In – Will CIOs find a Silver Lining ?

PRAGUE / WARSAW, October 5, 2015 – The advance of the 3rd Platform and its four pillars — mobility, cloud, big data/analytics, and social business — has fundamentally changed the nature of how organizations purchase and use technology, opening up new possibilities for getting business done. Cloud, as one of the substantial transformative forces, is impacting all areas of IT supply, composition, and consumption and provides the basis for many of the big data, mobile, and social solutions. In fact, IDC predicts the number of new cloud-based solutions will triple in the next four to five years. Industry-specific applications will be a driving force as businesses look for solutions that can be easily configured to their unique business and vertical requirements. With the huge increase in the number and diversity of services available in the market, organizations across the industries will shift steadily toward cloud-first strategies to enable digital transformation. (TZ)

This is expected to make cloud services one of the most dynamic areas of the global IT market, expanding several times faster than traditional (i.e., 2nd-Platform) IT categories. Public IT cloud services spending reached more than $60.0 billion in 2014 and will exceed $127 billion in 2018, reflecting a compound annual growth rate (CAGR) of 22.8% — about six times the rate of overall IT market growth. In 2018, public IT cloud services will drive nearly 20% of the $640 billion aggregate spending in applications, development and deployment tools, infrastructure software, storage, and servers, and they will account for 55% of spending growth.

Software as a service (SaaS) — accounting for 70% of 2014 cloud services spending — continues to dominate public IT cloud services spending, as most customer demand is, understandably, at the application level. Infrastructure as a service (IaaS) remains the second-largest IT cloud services category — boosted largely by cloud storage dynamic growth driven by big data solutions boom — even as intense price competition and looming consolidation pressure IaaS price points. Platform as a service (PaaS) is the smallest but the fastest-growing category, driven by major upticks in developer cloud services adoption.

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About IDC – International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 46 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.Follow IDC on Twitter at @IDC.