Research & Development World

  • R&D World Home
  • Topics
    • Aerospace
    • Automotive
    • Biotech
    • Careers
    • Chemistry
    • Environment
    • Energy
    • Life Science
    • Material Science
    • R&D Management
    • Physics
  • Technology
    • 3D Printing
    • A.I./Robotics
    • Software
    • Battery Technology
    • Controlled Environments
      • Cleanrooms
      • Graphene
      • Lasers
      • Regulations/Standards
      • Sensors
    • Imaging
    • Nanotechnology
    • Scientific Computing
      • Big Data
      • HPC/Supercomputing
      • Informatics
      • Security
    • Semiconductors
  • R&D Market Pulse
  • R&D 100
    • Call for Nominations: The 2025 R&D 100 Awards
    • R&D 100 Awards Event
    • R&D 100 Submissions
    • Winner Archive
    • Explore the 2024 R&D 100 award winners and finalists
  • Resources
    • Research Reports
    • Digital Issues
    • R&D Index
    • Subscribe
    • Video
    • Webinars
  • Global Funding Forecast
  • Top Labs
  • Advertise
  • SUBSCRIBE

Public IT Cloud Services to Grow over 5x Faster than Traditional, IDC Finds

By R&D Editors | June 23, 2010

Public IT Cloud Services to Grow over 5x Faster than Traditional, IDC Finds 

Worldwide revenue from public IT cloud services exceeded $16 billion in 2009 and is forecast to reach $55.5 billion in 2014, representing a compound annual growth rate (CAGR) of 27.4 percent, a newly published International Data Corporation (IDC) document finds. This rapid growth rate is over five times the projected rate of growth for traditional IT products (five percent). This research further illustrates that public IT cloud services are crossing the chasm with modest revenue, but very fast growth.

“For vendors, cloud computing is critically important for two key reasons — market growth and leadership disruption. The cloud model will propel IT market growth and expansion for the next 20 years and will help the industry to more rapidly develop and distribute a new generation of killer apps, and to more successfully penetrate small and medium-sized businesses. As this happens, industry leadership ranks will certainly change,” stated Frank Gens, senior vice president and chief analyst at IDC. “Additionally, our research with many CIOs about their plans for adopting cloud computing shows that IT customers are excited about the cost and agility advantages of cloud computing, but they also have serious concerns about the maturity of cloud computing offerings, specifically around security, availability, cost monitoring/management, integration and standards.”

Additional key takeaways from IDC’s research include:

• While spending on public IT cloud offerings in 2014 will reach 12 percent of the size of traditional IT product spending, it will be over 25 percent of the net-new growth in traditional IT products. Growth-oriented IT vendors should invest in proportion to this net-new growth impact, rather than cloud services’ revenue impact.

• Among the five primary cloud services segments forecast in this document, cloud applications dominated in 2009, but IDC forecasts that, by 2014, a less skewed distribution of revenue will occur, with applications accounting for a little over one-third of market revenue and increased revenue shares in infrastructure and platform-as-a-service (PaaS) segments.

• Adoption growth will shift away from U.S. dominance. Revenue from public IT cloud services in 2009 was heavily concentrated in the United States (70.2 percent), but by 2014 the U.S. share will drop to 51.4 percent, with other regions/countries — notably Western Europe and Asia/Pacific (excluding Japan) — growing share rapidly.

The IDC study, Worldwide and Regional Public IT Cloud Services 2010-2014 Forecast forecasts revenue growth from public IT cloud services through 2014, segmented by five functional categories within eight regions/countries. The forecast data, driven by IDC’s key assumptions for public IT cloud services development and adoption, lead to this document’s key conclusions regarding cloud offerings’ revenue and growth impacts on the IT industry, customer adoption shifts among the five IT cloud services categories, and shifting adoption patterns among the eight regions/countries.

Related Articles Read More >

From solar system simulations to SaaS savings, how Codeium’s AI agent empowers non-coders and scientists alike
Aardvark AI forecasts rival supercomputer simulations while using over 99.9% less compute
Quantum Brilliance, Pawsey integrate room-temp quantum with HPC on NVIDIA GH200
Frontier supercomputer reveals new detail in nuclear structure
rd newsletter
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest info on technologies, trends, and strategies in Research & Development.
RD 25 Power Index

R&D World Digital Issues

Fall 2024 issue

Browse the most current issue of R&D World and back issues in an easy to use high quality format. Clip, share and download with the leading R&D magazine today.

Research & Development World
  • Subscribe to R&D World Magazine
  • Enews Sign Up
  • Contact Us
  • About Us
  • Drug Discovery & Development
  • Pharmaceutical Processing
  • Global Funding Forecast

Copyright © 2025 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy | Advertising | About Us

Search R&D World

  • R&D World Home
  • Topics
    • Aerospace
    • Automotive
    • Biotech
    • Careers
    • Chemistry
    • Environment
    • Energy
    • Life Science
    • Material Science
    • R&D Management
    • Physics
  • Technology
    • 3D Printing
    • A.I./Robotics
    • Software
    • Battery Technology
    • Controlled Environments
      • Cleanrooms
      • Graphene
      • Lasers
      • Regulations/Standards
      • Sensors
    • Imaging
    • Nanotechnology
    • Scientific Computing
      • Big Data
      • HPC/Supercomputing
      • Informatics
      • Security
    • Semiconductors
  • R&D Market Pulse
  • R&D 100
    • Call for Nominations: The 2025 R&D 100 Awards
    • R&D 100 Awards Event
    • R&D 100 Submissions
    • Winner Archive
    • Explore the 2024 R&D 100 award winners and finalists
  • Resources
    • Research Reports
    • Digital Issues
    • R&D Index
    • Subscribe
    • Video
    • Webinars
  • Global Funding Forecast
  • Top Labs
  • Advertise
  • SUBSCRIBE