The International Data Corporation (IDC) has estimated that spending on Public Cloud services will more than double between 2019 and 2023.
The market researcher’s latest Public Cloud services spending guide predicts that a five-year compound annual growth rate of 22.3% will see public cloud spending grow from £184 billion to nearly £400 billion in 2023.
According to the report, Software as a Service (SaaS) will be the largest category of cloud computing, capturing more than half of all public cloud spending within the five year time period. The category comprises of applications and System Infrastructure Software (SIS) and will be dominated by applications purchases. SaaS purchases will be led by Customer Relationship Management (CRM) and Enterprise Resource Management (ERM), whereas the leading SIS purchases will be security software and service management software.
IDC Programme director Eileen Smith commented:
“Adoption of public (shared) cloud services continues to grow rapidly. Enterprises, especially in professional services, telecommunications, and retail, continue to shift from traditional application software to SaaS and from traditional infrastructure to Infrastructure as a Service (IaaS) to empower customer experience and operational-led digital transformation initiatives.”
As public cloud spending increases, the challenge for organisations will be optimising their cloud environments so they get the most out of them. Security, compatibility with existing infrastructure and ease of management are just some of the considerations that need to be made.
Xynomix Managing Director, Andrew Elcock, explains:
“The IDC’s predictions are completely understandable given that more and more organisations are realising the benefits of the cloud. Hosting systems in the cloud means companies can harness the ability to scale as required, without having to worry about hardware costs.
“As a business owner I know how important it is to have the ability to scale up and scale back when necessary and that’s why we’ve invested heavily in cloud for our internal infrastructure at Xynomix.
“We are seeing an accelerated shift towards cloud from our clients as their systems reach end of life and they embrace digital transformation. We’ve often found that the real challenge they face is ensuring the cloud environment is optimised properly for their needs, which is where we come in.”
Our cloud readiness assessments and estate reviews are helping clients who are interested in migrating to the cloud to understand which of their workloads are best suited for it. Our experience in guiding organisations through their cloud journey has even been recognised by our acceptance onto the G-Cloud 11 framework.
If you’re considering a move to the cloud, speak to our experts to find out more about the best approach for your needs.