According to a report by IDC, worldwide spending on public cloud services is forecasted to reach $ 805 billion in 2024 and double in size by 2028.
Although annual spending growth is expected to slow slightly over the 2024-2028 forecast period, the market is forecasted to achieve a five-year compound annual growth rate (CAGR) of 19.4 per cent.
Commenting on the report, Eileen Smith, group vice president, data and analytics, IDC, said, “Cloud now dominates tech spending across infrastructure, platforms, and applications, most organisations have adopted the public cloud as a cost-effective platform for hosting enterprise applications and for developing and deploying customer-facing solutions. Looking forward, the cloud model remains incredibly well positioned to serve customer needs for innovation in application development and deployment, including as data, artificial intelligence/machine learning (AI/ML), and edge needs continue to define the forefront of innovation.”
Meanwhile, Andrea Minonne, research manager, data and analytics, IDC, said, “The rapid advancements in AI are significantly driving the surge in cloud spending. With organisations increasingly building, testing, and deploying AI platforms, the growing interdependence between AI innovation and cloud infrastructure is positioning cloud services as the backbone of AI development and deployment, AI platforms will be the fastest growing technology in the years to come, and in the long run industries like insurance, healthcare payer, and healthcare provider will accelerate cloud-based AI platforms investments the fastest.”
As per the report, out of the 28 industries covered in the spending guide, the three largest, which are, banking, software and information services and retail will together represent $ 190 billion in public cloud services spending in 2024.
Furthermore, it added that software as a service (SaaS) applications will be the largest category of cloud computing, capturing more than 40 per cent of all public cloud spending in 2024 followed by platform as a service (PaaS) and infrastructure as a service (IaaS) will each deliver nearly 20 per cent of all public cloud spending and SaaS – system infrastructure software (SIS) which will be the smallest category of cloud spending with a little over 16 per cent of the overall market.
