IDC has confirmed that global spending on cloud exceeded total expenditure on non-cloud in 2019. The cloud services market is expected to expand at an exponential rate of 17% in 2020.
Gartner has confirmed that the global public cloud services market is expected to grow at an exponential rate of 17% in 2020. Cloud adoption has taken center stage, grabbing the maximum investments. Expectations from the efficacy of cloud infrastructure are also high, as most next-generation solutions are mostly ‘cloud-enhanced’ solutions. These solutions are built on the strengths of cloud platforms to deliver digital business capabilities
Software as a service (SaaS) will capture the largest market segment, with a forecasted growth to reach $116 billion in 2020 due to the scalability of subscription-based software. SaaS is followed by IaaS, securing the highest growth in 2020 due to data center consolidations. IaaS is expected to reach $50 billion in 2020, expected to grow 24% year over year. This growth rate is attributed to the demands of modern applications to simplify workloads, which requires a more comprehensive infrastructure that traditional data centers cannot meet.
IDC confirmed that the global expenditure on cloud IT infrastructure exceeded the total spending on non-cloud IT infrastructure in the third quarter of 2019. IDC has slightly increased its predictions for the cloud market in 2019 to $65.4 billion, representing a flat performance compared to the last year.
The public cloud spending fell 3.7% year-on-year to US$11.9 billion, but the recent report has represented a 24.4% increase from the last quarter. The public cloud market continues to account for the maximum investment in cloud IT environments, but its share of total expenditure continues to decline in 2019. In contrast, the spending on private cloud IT environments went up by 3.2% year-on-year, touching nearly US$5 billion.
The cloud-managed service landscape is becoming more sophisticated and competitive. By 2022, up to 60% of firms are expected to use a sort of SaaS cloud-managed service offering, almost doubling the percentage of user organizations from 2018. The cloud-native capabilities, application services, multi-cloud, and hybrid cloud comprise a diverse cloud ecosystem that will remain vital differentiators for technology product managers. The demand for strategic cloud service indicates an organizational shift towards digital business outcomes.