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Public Cloud Spending Forecast To Hit $72.9 Billion by 2015

Public cloud spending will reach $72.9 billion by 2015, up from last year's $21.5 billion, according to a report released by market researcher IDC this week.

That accounts for a compounded annual growth rate of 27.6 percent over the next four years, according to the new forecast.

Public cloud services will fuel other emerging technologies, such as mobile devices, wireless networks, big data analytics and social networking, said IDC senior VP and chief analyst Frank Gens in a statement.

"Together, these technologies are merging into the industry's third major platform for long-term growth," Gens noted. "As during the mainframe and PC eras, the new platform promises to radically expand the users and uses of information technology, leading to a wide and entirely new variety of intelligent industry solutions"

Spending for public cloud services is growing upwards of four times the rate of the overall global IT market combined, according to IDC. As such, IDC anticipates one of every $7 spent on packaged software, servers and storage by 2010 will be connected to public cloud computing, IDC said.

Among some other figures highlighted by IDC:

  • Public cloud services will account for 46 percent of new growth in IT spending across five product areas -- applications, application development and deployment, systems infrastructure software, storage and servers -- by 2015.

  • Approximately three-quarters of all spending on public cloud services will be spent on software-oriented offerings, while spending on servers and storage will largely come from Software as a Services (SaaS) providers.

  • Nearly 50 percent of public IT cloud services revenues will come from the United States in 2015.

Posted by Jeffrey Schwartz on 06/22/2011 at 1:14 PM


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