A report released by IDC forecasts public cloud spending to double by 2019.
The Worldwide Semiannual Public Cloud Services Spending Guide estimates that worldwide spending on public cloud services will grow at 19 per cent per year, which is nearly six times the rate of overall IT spending growth.
The report also states that while Software as a Service (SaaS) will remain the dominant cloud computing type, spending on Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) will increase more sharply.
The analysts at IDC expect large companies to be the primary drivers of public cloud service growth, although SME spending will also increase, making all levels of business attractive to service providers.
Telecommunications is forecast to be the fastest-growing vertical industry between now and 2019, along with state and local government spending.
“Over the past several years, the software industry has been shifting to a cloud-first (SaaS) development and deployment model. By 2018, most software vendors will have fully shifted to a SaaS/PaaS code base,” said Frank Gens, senior vice president and chief analyst at IDC.
“This means that many enterprise software customers, as they reach their next major software upgrade decisions, will be offered SaaS as the preferred option. Put together, new solutions born on the cloud and traditional solutions migrating the cloud will steadily pull more customers and their data to the cloud.”
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