Through 2014 Public IT Cloud Services Will Grow at More Than Five Times the Rate of Traditional IT Products, New IDC Research Finds
FRAMINGHAM, Mass., June
23, 2010 – 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%, 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 (5%). 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% of the size of traditional IT product spending, it will be
over 25% 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%), but by 2014 the U.S. share will drop
to 51.4%, 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 (IDC #223549) 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.
For more information about the impact of cloud services,
please go to IDC’s Cloud
Research Resource Center.
For more information, contact:
Frank Gens
[email protected]
508-988-7923
Michael Shirer
[email protected]
508-935-4200
