COVID-19 has turbo-charged cloud adoption and extension around the world as enterprises scramble to adapt to a new normal.
Total worldwide spending on cloud services, the hardware and software components underpinning cloud services, and the professional and managed services opportunities around cloud services will surpass US$1 trillion in 2024, according to IDC.
The market will sustain a double-digit compound annual growth rate (CAGR) of 15.7 percent.
“Cloud in all its permutations – hardware/software/services/as a service as well as public/private/hybrid/multi/edge – will play ever greater, and even dominant, roles across the IT industry for the foreseeable future,” said Richard L Villars, Group Vice President, Worldwide Research of IDC.
“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,” he added.
As-a-service strongest growth
The strongest growth in cloud revenues will come in the as-a-service category — public (shared) cloud services and dedicated (private) cloud services — which is expected to deliver a five-year CAGR of 21 percent. By 2024, this category will account for more than 60 percent of all cloud revenues worldwide.
The services category, which includes cloud-related professional services and cloud-related management services, will be the second largest category in terms of revenue but will experience the slowest growth with an 8.3 percent CAGR. This is due to factors such as greater use of automation in cloud migrations.
The smallest cloud category, infrastructure build, which includes hardware, software, and support for enterprise private clouds and service provider public clouds, will experience 11.1 percent CAGR over the forecast period.