The public cloud is set to continue growing with cloud spending expected to reach $122 billion in 2017 according to the latest market reports by IDC and Gartner. According to both IDC and Gartner Software as a service (SaaS) will remain the dominant cloud computing type and continue to grow to almost 60% by 2020.
There are many trends to watch out for over the next three years according to these recent reports and in this two-part post we will share six of these trends with you.
IaaS Leads Cloud Spending Growth in 2017
Gartner says that the highest growth in the public cloud services market in 2017 will come from cloud system infrastructure services, or Infrastructure as a Service (IaaS), which is projected to grow 36.8 percent to reach $34.6 billion.
Professional Services, Retail: Industries to Watch
While discrete manufacturing, professional services, and banking will lead global spending on public cloud services in 2017, over the five-year forecast period the industries that will see the fastest growth in public cloud spending are professional services (23.9 percent CAGR), retail (22.8 percent CAGR), media (22.5 percent CAGR), and telecommunications (22.1 percent CAGR), IDC says.
China Cloud Growth Buoyed by Digital Transformation
Gartner says that China’s IaaS cloud market will see high levels of growth thanks to the larger pure-play IaaS providers and telecom-related cloud providers in the market. While the cloud service market in China is several years behind the U.S., it will see high levels of growth along with digital transformation.
Cloud Purchase Priorities
IDC says that though spending priorities differ depending on the size of the company, customer relationship management (CRM) and enterprise resource management (ERM) applications are leading product categories, and server and storage hardware spending will also grow.
Large, Mid-Size Businesses Drive Public Cloud Spend
Nearly half of all public cloud spending will come from businesses with more than 1,000 employees, while medium-sized businesses (between 100-499 employees) will deliver more than 20 percent throughout the forecast, IDC says.
Demand from Compute-Intensive Workloads Drives Cloud Growth
Compute intensive workloads, such as artificial intelligence (AI), analytics, and the Internet of Things (IoT) will drive more cloud growth in the IaaS space. Migration of infrastructure to the cloud will also drive this growth, according to Gartner.
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