With more businesses increasingly becoming dependent on cloud services, the total spending on cloud services will surpass $1 trillion by 2024 – claims IDC.
More businesses are increasingly dependent on cloud services as they function in a scattered manner, moving their operations online. The global pandemic has proven to be an accelerator for cloud adoption and digital transformation across industries. And this will continue to steer a faster conversion into cloud-centric IT.
As a result, worldwide spending on cloud services is going to rise. According to a recent study by IDC, the total spending on cloud services will surpass $1 trillion by 2024 – sustaining a compound annual growth rate of 15.7%. This includes the hardware and software components supporting cloud services and the managed services opportunities.
Simply put, cloud, in all its combinations – hardware, software, services, as a service and as public, private, hybrid, multi, and the edge will play a more significant and even dominant role. This is valid across the industries, primarily for the IT sector in the probable future – for companies to operate efficiently and effectively.
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As mentioned by Richard L. Villars, Group VP of Worldwide Research at IDC, in the company blog post – “By the end of 2021, based on lessons learned in the pandemic, most enterprises will put a mechanism in place to accelerate their shift to cloud-centric digital infrastructure and application services twice as fast as before the pandemic.”
The study revealed that the major progress in cloud revenues would arise in the ‘as-a-service’ category. This is most likely to be public (shared) cloud services as well as private (dedicated) cloud services. In terms of overall revenues, this category is also the largest and is projected to bring a five-year CAGR of 21.0%.
Moreover, this ‘as-a-service’ set will globally account for over 60% of the entire cloud revenues. The services category, including the cloud-based professional and cloud management services, is expected to be the second-largest category in revenue. This category will experience the most sluggish growth – with a CAGR of 8.3%.
This is happening due to various factors, such as greater use of automation in cloud migrations. Besides, the smallest cloud category is the infrastructure build – it includes software, hardware, and support for private enterprise clouds as well as service provider public clouds. This group is most likely to see robust growth over the forecasted period, with a CAGR of 11.1%.
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COVID-19 has affected the cloud adoption process adversely over the next several years. However, many factors are driving the cloud market ahead. The tech companies are increasingly helping customers migrate to cloud environments, build innovations, combat cyberattacks, and manage the expanding cloud environments.
Even the advent of consumption-related IT solutions is intended to leverage public cloud-based competencies in an on-premises ecosystem to reduce complexity and restructure the enterprises’ cost. The adoption of cloud services is enabling businesses to shift IT from the maintenance of legacy IT into innovative digital transformation initiatives.
Clearly, this can help in getting more business revenue and competitiveness – creating new opportunities for professional services for suppliers and users.
