Feeds

Laugh all you want at 'the cloud' - it'll be worth '$100bn by 2016'

Public-facing services to coin it, predicts IDC

Application security programs and practises

Some $100bn will be slurped up by public IT cloud services by 2016, according to the crystal-ball gazers at IDC.

Spending is set to peak at $40bn this year but is forecast to expand more than 26 per cent on a compound annual growth basis over the next four years – five times faster than the total industry average.

"The IT industry is in the midst of an important transformative period as companies invest in the technologies that will drive growth and innovation over the next two to three decades," said IDC chief beancounter Frank Gens.

He added that by the close of this decade, at least 80 per cent of industry growth as well as enterprises' "highest value leverage of IT" will pertain to cloud services and other third-platform tech.

The public cloud specifically is predicted to account for 16 per cent of global IT revenues in five categories: applications, Software-as-a-Service (SaaS), platform-as-a-service, servers and basic storage.

SaaS – both apps-as-a-service and system infrastructure software-as-a-service as a service – is expected to be the largest public cloud segment, but growth in the other four areas will be the fastest.

IDC reckons cloud services will generate 41 per cent of all growth in the five segments by the end of the forecast period in 2016. "Quite simply, vendor failure in cloud services will mean stagnation," said Gens.

This means the rate of cloud provision from the channel must keep pace with the industry average if solution providers want to remain relevant to customers – at least if any credence is given to IDC's research.

The US is expected to remain the highest spender on public clouds, followed by Western Europe and Asia Pacific, though growth in emerging markets will be the swiftest; these regions are forecast to account for nearly 30 per cent of new public cloud services by 2016. ®

Eight steps to building an HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.