Cloud computing will drive $554B in revenue by 2021

Up till now, maximum cloud revenue forecasts have centred on particular segments of cloud computing, but that approach has been totally modified when International Information Corp. launched its first report at the “complete cloud.”

What is Cloud computing?


Cloud computing
is the provision of computing services (servers, storage, databases, network equipment, software, analytics, etc.) over the Internet. This is the so-called cloud. Companies that provide such computing services are called cloud service providers.

Let’s get a little bit historic

Since its inception in 2006, the concept has penetrated deeply into various IT spheres and has become more and more important in practice: according to IDC, the market of public cloud computing by 2009 amounted to $ 17 billion – about 5% of the total information technology market, and in 2014 the total costs of organizations for infrastructure and services, related to cloud computing, are estimated at almost $ 175 billion.

Why do business need the cloud?

Consumers of cloud computing can significantly reduce the cost of information technology infrastructure (in the short and medium term) and flexibly respond to changes in computing needs, using the properties of computational elasticity of cloud services.

$554 billion is it possible?

The brand new forecast encompasses just about each viable cloud service one would possibly consider, which includes public, non-public and hybrid clouds, plus the software and hardware infrastructure for building clouds, controlled cloud offerings and other related expert offerings.

The upshot: IDC reckons that global whole cloud revenues will hit $554 billion via 2021, greater than doubling the sales it accomplished in 2016.

The studies company notes that the lion’s percentage of these revenues may be dominated with the aid of public cloud offerings, which can be set to account for forty-eight percentage of all cloud-associated spending with the aid of 2021.

That’s up from 41 percentage of all cloud spending the class accounted for in 2016. IDC adds that while you throw in spending on hardware to enable public cloud offerings, plus spending on managed and professional offerings for the public cloud, those figures bounce to 65 per cent in 2016 and 68 percentage in 2021.

Current state of the market

Meanwhile, the full spending on managed cloud offerings and expert services around cloud adoption accounted for 31 per cent of all sales generated in 2016, a per cent so as to remain constant in 2021.

Vendors of cloud services are also searching like they’ll turn out to be very worthwhile in 2021, as they’ll rake in seventy-six percentage of all spending on cloud-related infrastructure hardware and software, IDC said.

“The most apparent takeaway from this forecast is that the shift to the cloud consumption version — in all its bureaucracy — is a mass movement, and will continue to be such over the forecast period,” stated Frank Gens, senior vice chairman and chief analyst at IDC.

“Equally vital, although, is the regular drumbeat of tech innovation this is coming from the primary public cloud providers, making it truly not possible for organizations and developers looking for gain via IT now not to embrace the general public cloud.”

IDC’s figures for both 2016 and 2021 consist of rising new public cloud services which include blockchain offerings, backend information services for the “internet of factors,” serverless computing services and encryption services.

In July 2017, IDC published any other forecast at the cloud computing industry that said software-as-a-service may be the most dominant segment, accounting for two-thirds of all public cloud revenues this year.

Conclusion

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