The global public-cloud services market will grow approximately 23 percent per year until 2018.
That’s according to International Data Corp. (IDC), which, in its semiannual Public Cloud Services Tracker, reports that the market reached $45.7 billion for 2013. With a compound annual growth rate of 23 percent, that means the market could nearly triple in five years’ time.
"We are at a pivotal time in the battle for leadership and innovation in the cloud. IDC's Public Cloud Services Tracker shows very rapid growth in customer cloud service spending across 19 product categories and within eight geographic regions. Not coincidentally, we see vendors introducing many new cloud offerings and slashing cloud pricing in order to capture market share. Market share leadership will certainly be up for grabs over the next two to three years," said Frank Gens, senior vice president and chief analyst at IDC.
Breaking it down, software as a service (SaaS) accounts for 72 percent of the total public cloud services market, and is forecast to grow at a 20 percent CAGR until 2018. SaaS is dominated by enterprise applications – cloud solutions such as enterprise resource management (ERM) and customer relationship management (CRM), followed by collaborative applications. System infrastructure software cloud solutions – the other major part of the SaaS market, including security, systems management and storage management cloud services – drove 21 percent of the 2013 SaaS market.
The SaaS service-provider ecosystem is largely led by Salesforce.com, followed by ADP and Intuit, IDC noted. Traditional software vendors Oracle and Microsoft hold the fourth and fifth positions, respectively.
Platform as a service (PaaS) accounted for 14 percent of the market in 2013 with a forecast CAGR of 27 percent. It’s composed of a wide variety of cloud app development, deployment and management services. In 2013 and 2014, PaaS spending has been largely driven by integration and process-automation solutions, data management solutions, and application server middleware services.
Amazon led in 2013 PaaS market share, followed by Salesforce.com and Microsoft (tied for second). GXS and Google round out the top five.
The infrastructure-as-a-service (IaaS) market has the brightest future of them all. It’s comprised of two major segments: server and basic storage. The IaaS market drove $3.6 billion in 2013 spending and is projected to grow at a 31 percent CAGR through 2018. The top five vendors in this market are Amazon.com (which holds the first position with more than 40 percent of market share), RackSpace, IBM, CenturyLink and Microsoft.
Regionally, the U.S. holds more than two-thirds (68 percent). Western Europe is second with 19 percent.
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