Home CioAxis Global spending on the cloud will reach $ 1.3 trillion in 2025

Global spending on the cloud will reach $ 1.3 trillion in 2025

by CIO AXIS

International Data Corporation (IDC) has forecast “whole cloud” spending – total worldwide spending on cloud services, the hardware and software components underpinning the cloud supply chain, and the professional/managed services opportunities around cloud services – will surpass $1.3 trillion by 2025 while sustaining a compound annual growth rate (CAGR) of 16.9%.

Over the past decade, cloud computing has become the foundation for the delivery of mobile and content services as well as an alternative to traditional enterprise computing environments. As businesses pivot to a digital-first economy, cloud will continue to play an ever greater, and even dominant, role as the IT industry focuses on delivering greater efficiency, flexibility, and faster innovation.

“In today’s digital-first world, business outcomes and innovation are increasingly tied to the ability to develop and use innovative technologies and services anywhere, as quickly as possible. Cloud is the foundation for meeting this need,” said Rick Villars, group vice president, Worldwide Research at IDC.

Shared (Public) Cloud as-a-Service for infrastructure, platforms, and various software offerings continues to be the largest, and fastest increasing, engine of growth for the whole cloud market. Combined spending on shared cloud services – Infrastructure as-a-Service (IaaS), System Infrastructure Software as-a-Service (SISaaS), Platform as-a-Service (PaaS), and Software as-a-Service (SaaS) – will total $385 billion in 2021 and will see a compound annual growth rate (CAGR) of over 21.0% through 2025, reaching $809 billion.

Dedicated (Private) Cloud Services, which includes hosted private cloud services and the fast-emerging Dedicated Cloud Infrastructure–as-a-Service (DCIaaS) segment, will grow at a faster CAGR of 31.0%, but from a much smaller revenue base of $5 billion in 2021.

The as-a-Service segments of cloud spending, combining Shared Cloud as-a-Service and Dedicated Cloud as-a-Service, will account for the majority of all cloud spending throughout the forecast, growing from 55.7% in 2021 to 64.1% in 2025. These segments will also see the fastest growth in spending, with a five-year CAGR of 21.3%.

Cloud Buildout – the hardware, software, and standard support services for these cloud assets – represents the most critical area of cloud spending outside the as-a-Service segments. IDC has already established that spending on compute and storage infrastructure products for cloud infrastructure will continue to outpace non-cloud IT infrastructure investments throughout its forecast. The five-year CAGR for cloud hardware, software, and support is expected to be 11.8%.

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