Public Cloud Services Spending Will Reach $210 Billion This Year

Public Cloud Services Spending Will Reach $210 Billion This Year

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Worldwide spending on public cloud services and infrastructure is forecast to reach $210 billion in 2019, an increase of 23.8% over 2018, according to IDC. Although annual spending growth is expected to slow slightly over the 2017-2022 forecast period, the market is forecast to achieve a five-year compound annual growth rate (CAGR) of 22.5% with public cloud services spending reaching $370 billion in 2022.

Three industries, professional services, discrete manufacturing, and banking, will each spend more than $20 billion on public cloud services this year, accounting for more than one third of the worldwide total. The process manufacturing and retail industries will round out the top five with spending of more than $15 billion each.

Software as a Service (SaaS) will be the largest category of cloud computing, capturing more than half of all public cloud spending in 2019. SaaS spending, which is comprised of applications and system infrastructure software (SIS), will be dominated by applications purchases.

Infrastructure as a Service (IaaS) will be the second largest category of public cloud spending in 2019, followed by Platform as a Service (PaaS). IaaS spending will be the fastest growing category of cloud spending with a five-year CAGR of 33.7%. PaaS spending will be the second-fastest growing category witj 29.8% CAGR.

The United States will be the largest geographic public cloud market with spending forecast to be $124.6 billion in 2019. China will be the second largest market at $10.5 billion, followed closely by the United Kingdom ($10.0 billion) and Germany ($9.5 billion). Japan will round out the top five with $7.4 billion.

China will experience the fastest growth in public cloud services spending over the five-year forecast period (44.9% CAGR). Latin America will also deliver strong public cloud spending growth, led by Brazil (38.8% CAGR), Colombia (38.5% CAGR) and Argentina (38.4% CAGR).

Very large businesses (more than 1000 employees) will account for more than half of all public cloud spending this year, while medium-size businesses (100-499 employees) will deliver another 20% of the worldwide total. Small businesses (10-99 employees) will edge out large businesses (500-999 employees) for the third position.

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