IDC: Cloud services to skyrocket to $55.5B by 2014
Worldwide revenue from public IT cloud services exceeded $16 billion in 2009 and is expected to reach $55.5 billion in 2014, according to recent analysis from International Data (IDC).
This represents a compound annual growth rate of 27.4 percent, a growth rate more than five times the projected rate of growth for traditional IT products (5 percent).
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 more than a 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,” IDC also predicted. “Revenue from public IT cloud services in 2009 was heavily concentrated in the U.S. (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.”
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, according to Framingham, Mass.-based IDC. “Growth-oriented IT vendors should invest in proportion to this net-new growth impact, rather than cloud services' revenue impact,” IDC concluded.
This represents a compound annual growth rate of 27.4 percent, a growth rate more than five times the projected rate of growth for traditional IT products (5 percent).
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 more than a 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,” IDC also predicted. “Revenue from public IT cloud services in 2009 was heavily concentrated in the U.S. (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.”
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, according to Framingham, Mass.-based IDC. “Growth-oriented IT vendors should invest in proportion to this net-new growth impact, rather than cloud services' revenue impact,” IDC concluded.