Cloud services are set to be worth as much as $70bn, driven in part by the growth of data analytics. Social media and mobile are also set to contribute.
The prediction comes in a new report from IDC, which predicts that the number of new cloud-based solutions will triple in the next four to five years. Industry-specific applications will be a driving force as businesses look for solutions that can be easily configured to individual requirements, says IDC.
Discrete manufacturing, banking, professional services, process manufacturing, and retail are expected to account for approximately 45% of the total spend for the market.
The new study provides a vertical forecast by 20 industries for the United States and worldwide for thee public cloud computing technologies — software as a service, platform as a service, and infrastructure as a service — and 2 primary software markets for SaaS — applications and system infrastructure software — and 1 primary software market for PaaS — application development and deployment.
IDC asserts that cloud services will remain the essential foundation of the IT industry’s 3rd Platform of growth. As the cloud market enters an “innovation stage,” there will be an explosion of new solutions and value creation on top of the cloud. IDC predicts that there will be more industry-specific cloud services platforms and marketplaces run by leaders in each industry seeking to attract communities of thousands of innovators to create valuable new services.
Eileen Smith, program manager, IDC Global Technology and Research Group. “We have already seen such platforms and innovation communities in place in retail, financial services, media, and other industries. This will reshape not only how companies operate their IT but also how they compete in their own industry. Technology suppliers will continue to see significant demand for their industry-specific solutions. It is important for these suppliers to develop strong customer-partner relationships with cloud/platform players to seize new opportunities.”
IDC also reports that the worldwide public cloud platform-as-a-service competitive market grew by about 41% in 2014, after 11% decline in 2013, forming a market that is around $6bn in size. This market is expected to grow from about $6bn in 2014 to over $22bn in 2019, with a CAGR of over 30% for the period.