Welcome!

@CloudExpo Authors: Liz McMillan, Zakia Bouachraoui, Yeshim Deniz, Pat Romanski, Elizabeth White

News Feed Item

U.S. Public IT Cloud Services Revenue Projected to Reach $43.2 Billion in 2016, According to IDC

International Data Corporation (IDC) today announced the availability of a new report, U.S. Public IT Cloud Service by Industry Sector (Doc #237520), that forecasts revenue from 2011-2016 of U.S. public IT cloud services. According to the report, U.S. public IT cloud services revenue will experience a compound annual growth rate (CAGR) of 18.5% over the forecast period, from $18.5 billion in 2011 to $43.2 billion in 2016. The new report focuses specifically on the public cloud services that are shared among unrelated enterprises and consumers, open to a largely unrestricted universe of potential users, and designed for a market, not a single enterprise. The forecast is segmented by five functional technology categories and by six vertical sectors.

"According to our research, the three verticals that accounted for more than 50% of the spending in 2011 are discrete manufacturing, professional services, and process manufacturing. This is not surprising as these industries are typically less risk averse and compliance focused," said Eileen Smith, program manager in IDC's Global Technology and Industry Research Organization. "Communications and media, education, and construction were found to be the fastest growing verticals. We expect the media portion of the communications and media vertical to continue to be one of the main users of storage on demand to enable continuous service for content-heavy customer offerings."

Additional key findings from the report include:

  • Services and distribution, the largest sector, accounted for 30.3% of total revenue in 2011. Professional services alone accounted for nearly 40% of the entire category in 2011.
  • Manufacturing and resources, the second-largest vertical sector, accounted for 24.0% of total public IT cloud services in 2011. Discrete manufacturing alone accounted for 46.7% of the entire category in 2011.
  • Infrastructure, the fastest-growing sector with a 19.6% five-year CAGR, accounted for 12.3% of spending in 2011 and will account for 12.9% of spending by 2016.

The five functional primary market cloud services segments specifically forecasted in this pivot table are:

  • Applications as a service
  • System infrastructure software as a service (SaaS)
  • Platform as a service (PaaS)
  • Server as a service
  • Basic storage as a service

The six vertical sectors specifically forecasted in the pivot table are:

  • Financial services (banking, insurance, and securities and investment services)
  • Manufacturing and resources (process and discrete manufacturing, construction, and natural resources)
  • Services and distribution (retail, wholesale, professional services, consumer and recreational services, and transportation)
  • Infrastructure services (communications and media, and utilities)
  • Public sector (government, education and healthcare)
  • Home business and consumer

For additional information about this research, or to arrange a one-on-one briefing with Eileen Smith, please contact Sarah Murray at 781-378-2674 or [email protected]. To request information on custom data cuts or subscription services, contact [email protected].

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For more than 48 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. For more information, please visit www.idc.com, email [email protected], or call 508-872-8200.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

CloudEXPO Stories
With more than 30 Kubernetes solutions in the marketplace, it's tempting to think Kubernetes and the vendor ecosystem has solved the problem of operationalizing containers at scale or of automatically managing the elasticity of the underlying infrastructure that these solutions need to be truly scalable. Far from it. There are at least six major pain points that companies experience when they try to deploy and run Kubernetes in their complex environments. In this presentation, the speaker will detail these pain points and explain how cloud can address them.
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-centric compute for the most data-intensive applications. Hyperconverged systems already in place can be revitalized with vendor-agnostic, PCIe-deployed, disaggregated approach to composable, maximizing the value of previous investments.
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed how this same philosophy can be applied to highly scaled applications, and can dramatically increase your resilience to failure.
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by sharing information within the building and with outside city infrastructure via real time shared cloud capabilities.
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.