Public Cloud spending is forecasted to reach $266 billion in 2021 worldwide, according to a recent update to the IDC Worldwide Semiannual Public Cloud Services Spending Guide. Out of it, $163 billion will be accounted for by the United States alone.
The spending will be slow between 2016-2021, and is expected to achieve a CAGR of 21.0%, per the report.
Amongst the regions, the United States will stand as the largest market for public cloud services, closely followed by Western Europe and APEJ (Asia/Pacific except Japan) regions with $52 billion and $25 billion respective spending levels in 2021.
Angela Vacca, SRM, Customer Insights and Analysis, said, “In Western Europe, the public cloud market is going to more than double in the 2016-2021 timeframe led by strong spending growth in Germany, which is also the largest national market, Italy, and Sweden. The industries that will grow the most in the period under investigation are utilities, discrete manufacturing, insurance, and professional services.”
She considers digital transformation as the major driver of cloud market as it will support organizations’ DX goals.
Software-as-a-Service(SaaS) has been identified as the major cloud computing type with maximum spending – two-third of the total public cloud spend in 2017 and expected to reach 60% by 2021. CRM and ERP applications will make up more than 60% of all the cloud applications’ purchases.
With regards to the company size, more than half of the spending will come from large sized organizations, while medium-sized organizations will account for 20%, per the report.
The growing demand for cloud services will result in substantial rise of Datacenters, as Cloud service providers will need infrastructure to expand their services’ reach.
The current cloud spending in 2017 is also expected to see an increase of 25.4% as compared to 2016, reaching $128 billion, per the press release by IDC.